Comments on: Your Private Money Broker Is Your Attorney http://privatemoneyutah.com/your-private-money-broker-is-your-attorney/ Just another WordPress weblog Thu, 15 Jul 2010 16:12:32 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Richard Smart http://privatemoneyutah.com/your-private-money-broker-is-your-attorney/comment-page-1/#comment-92 Richard Smart Wed, 22 Jul 2009 00:15:18 +0000 http://privatemoneyutah.com/?p=220#comment-92 There were some very true things said regarding the "need" for a good money broker just as there is a great need for a good attorney in a criminal case. Since I have a background in criminal justice I can attest to that analogy. Since I am new to the commercial property investment game, I have to say a good money broker is an invaluable necessity. But here is the question for you, how is a new investor (like myself) going to really know 1-who is a good broker,2-whether or not to believe that person, 3-how to "check" these people out, 4-and in that process, decide who is going to be a good risk, especially when they both want money up front and there is no track record to speak of showing you that they know what they are doing? I am not saying they are all bad, but what about paying the "fee" on the back end out of the proceeds of the loan? The attorney I understand must get paid up front because good job or not, his client might still end up in prison, but in the money world, why not make the broker put his money where his mouth is and find the money and then charge accordingly? I understand and have also heard that brokers put work into getting a deal funded and then the borrower can just back out if they want, but not if there is an agreement that states, "if the broker finds a lender that is willing to get the terms that are acceptable to the borrower, they must perform." I would think, like an attorney, the broker would ask a series of questions to make sure that they got what their client wanted and needed right? Just a thought. Rick There were some very true things said regarding the “need” for a good money broker just as there is a great need for a good attorney in a criminal case. Since I have a background in criminal justice I can attest to that analogy. Since I am new to the commercial property investment game, I have to say a good money broker is an invaluable necessity. But here is the question for you, how is a new investor (like myself) going to really know 1-who is a good broker,2-whether or not to believe that person, 3-how to “check” these people out, 4-and in that process, decide who is going to be a good risk, especially when they both want money up front and there is no track record to speak of showing you that they know what they are doing? I am not saying they are all bad, but what about paying the “fee” on the back end out of the proceeds of the loan? The attorney I understand must get paid up front because good job or not, his client might still end up in prison, but in the money world, why not make the broker put his money where his mouth is and find the money and then charge accordingly? I understand and have also heard that brokers put work into getting a deal funded and then the borrower can just back out if they want, but not if there is an agreement that states, “if the broker finds a lender that is willing to get the terms that are acceptable to the borrower, they must perform.” I would think, like an attorney, the broker would ask a series of questions to make sure that they got what their client wanted and needed right?

Just a thought.

Rick

]]> By: Corey Curwick http://privatemoneyutah.com/your-private-money-broker-is-your-attorney/comment-page-1/#comment-68 Corey Curwick Tue, 07 Apr 2009 19:31:41 +0000 http://privatemoneyutah.com/?p=220#comment-68 jack, Thanks for your comment. I liked what you said lastly about 'saving a buck'. This is another area where a decently qualified and ethical broker can really add value. A lot of clients goff at the broker fee but what they don't realize is that a good broker will go to bat for them and negotiate both interest rate and points with the lender. A client without representation is naked in front of a lender and prone to being taken advantage of. Did that sound right? ha ha! C jack,
Thanks for your comment. I liked what you said lastly about ‘saving a buck’. This is another area where a decently qualified and ethical broker can really add value. A lot of clients goff at the broker fee but what they don’t realize is that a good broker will go to bat for them and negotiate both interest rate and points with the lender. A client without representation is naked in front of a lender and prone to being taken advantage of. Did that sound right? ha ha!
C

]]> By: Jack http://privatemoneyutah.com/your-private-money-broker-is-your-attorney/comment-page-1/#comment-67 Jack Tue, 07 Apr 2009 17:08:43 +0000 http://privatemoneyutah.com/?p=220#comment-67 Corey, It is amazing how principals think they can do things a little bit better and start out on their own only to fail. I was amused and saddened when reading this story. But it happens all of the time. That is why your services are needed. Every principal who thinks they can save a buck ends up spending two and paying for that experience. Keep up the good work. Jack Corey,

It is amazing how principals think they can do things a little bit better and start out on their own only to fail. I was amused and saddened when reading this story. But it happens all of the time. That is why your services are needed. Every principal who thinks they can save a buck ends up spending two and paying for that experience. Keep up the good work.

Jack

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