Had a borrower yesterday ask me to cut my fee from 2 points to 1 point because "the deal is easy." How do you handle fee negotiation? Do you ever cut your fee? If so, when?
so this has happened twice now. i agree on a 2 point fee with the borrower, lender knows about it, everything is fine... then at closing the lender tries to "negotiate" my fee down to 1.5 points because "the deal took longer than expected." this is not ok right?? what do i do?
I've been charging a flat broker fee (1-2 points) on most deals. Some brokers I know use yield spread (getting a higher rate from the lender and keeping the spread). What are the pros and cons of each model and what do most experienced brokers prefer?
I've been charging 1-2 points on most deals for the past 3 years. Recently had a conversation with a broker in my market who's charging 2-3 points consistently and says borrowers rarely push back. Am I underpricing my services? For context: I specialize in bridge loans $200k-$2M, mostly SFR and small multifamily, Southeast US. Average deal size around $450k.