Intermediaries - Private Lenders > Vetting?

by a searcher from Liberty University

1 year ago

Hey All!
I'm in communication with a consultant to obtain Debt Financing for an acquisition, and questioning legitimacy.  Is it standard to charge a refundable $7,500 fee for their service which then is put towards succession fees at closing for acquiring the loan for me?  (Has a General Serv Agreement) with pre-approval loan terms. 

Do we have a scammer list anywhere or a referral list of vetted intermediaries/consultants for loan brokerage?  

Thank you! :)

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6 comments

lender from Eastern Illinois University

We are a Commercial Loan Brokerage Shop and we work fully on a "Success Fee" basis and do not charge anything up front. If a broker needs to earn a fee up front I always refer to it as a warning sign. There is less incentive to get a deal done if they can live on up front fees. If a broker is confident they can get something done, then they should work on the "Success Fee" basis.

Now, if they present you a term sheet from a lender and that lender requires a deposit to complete due diligence, that is very common. But at that point you are making a deposit to the specific lender working the deal. In those cases you want to be sure that deposit is refundable (minus any costs incurred) if the lender does not end up approving the loan.

I hope this helps. I am more than happy to jump on a call at any time. You can reach me here or directly at --@----.com

1 year ago | like reply | 1 like

searcher from California State University, Long Beach

No, success fee only. If anything they can up the success fee and get paid on the backend

1 year ago | like reply | 1 like

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