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FEES AND COSTS

Lending institutions will not and do not pay the broker a commission for commercial loans placed with them, therefore a fee of 1% - 2%  of the loan amount will be charged at closing.

For Debt financing we do not charge any Up Front Fees whatsoever, but rather we prefer to earn a Success fee and/or Equity commission upon successful closing of a transaction.

 

No Application Fee 

No Revision Fee 

No Stand by Fee 

No Retainer 

 

For projects requiring Equity or JV financing, we charge a fee to review and perform preliminary due diligence and loan packaging. Equity financing is much more difficult to obtain and arrange and therefore we charge an initial fee for this service. Please call us to discuss how our equity program works.


Important Note:
 
Fees are always an issue with borrowers, but at the proper time, with the right proven source, they are a reality. If your local bank in your hometown requires a fee to do an appraisal, title survey, credit reports, property inspection, legal contract preparation, background check, and many other verifications to fund a house down the street, it is not realistic to expect them to fund a real estate project, in another city, province, state or country, at zero costs.

Developers that insist on paying absolutely nothing until funding will never get funded, it takes money to borrow money. Liquidity or cash on hand is definitely going to be required, and varies widely from lender to lender. Be prepared to pay lender fees/costs of some form.

In any given transaction, the Client will be responsible for paying the Legal Fees, Appraisal Fees, Feasibility and Marketing Report fees, Environmental report fees, Quantity surveyor fees, Land surveyor fees and any other fees related to due diligence and background checks and a Site visit.  Some lenders may require that you pay the fees/costs directly to a third party for the expenses incurred or they may require that you make a deposit into escrow in order to cover these costs as they are incurred.

The availability of the money is more important than the cost. Our lenders/investors often need to move quickly to help the seller get out of their current situation. They have to have capital available at all times in order to “make the deal happen” and paying a fee or higher interest rate is irrelevant compared to the loss of thousands of dollars in profit if the money was not available. The money is only expensive if you can't make a profit.

Please do not waste our time if you are not prepared to pay due diligence fees that may be required in order to get your project funded.

If you have any questions or concerns with regards to how we get paid and the costs involved, please feel free to contact us.

 

 

"It is unwise to pay too much, but it is worse to pay too little. When you pay too much, you lose a little money...that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits payiing a little and getting a lot - it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run. And if you do that, you will have enough to pay for something better" .

John Ruskin (1819 - 1900).

 

 

 

 

 

 

 

 

 

 

Copyright (c) Northern Range Capital Corp.