Commercial Loan Broker Fees: How Placement Compensation Works and How to Vet an Advisor

Experienced sponsors don't ask whether an advisor gets paid. They ask how, by whom, and whether the fee buys better execution than they'd get on their own. Here is how it works with us on commercial real estate and multifamily, and how to judge any advisor.

Our Fee on Commercial Real Estate and Multifamily

On commercial real estate and multifamily placements, our compensation is typically 1–2% of the loan amount, paid by the capital provider, and only when the loan funds. We don't charge you a separate fee for arranging the financing.

That is separate from the lender's own charges. Origination points, underwriting and processing fees, legal, appraisal and third-party reports are set by the lender and the transaction, and they appear in the term sheet and closing statement. The amount and source of our compensation are disclosed in writing on each deal.

Placement Fee vs. Lender Origination

• Placement compensation pays the advisor for sourcing, structuring and running the process across capital providers.
• Lender origination is the capital provider's own charge, typically shown as points on the term sheet.
• Third-party costs (appraisal, environmental, property condition, title, legal) are pass-throughs, whoever you use.

Compare all-in cost, not one line item. A lower coupon with heavier prepayment or a recourse structure may cost more over your hold than a slightly higher rate with flexibility.

Five Questions That Separate an Advisor From a Loan Shopper

1. Which capital providers would you take this to, and why those? A real advisor can name the lane (bank, agency, debt fund, bridge) and explain the fit before sending anything out.
2. What will the lender push back on? They should spot the underwriting issues in your T-12, rent roll or business plan before a lender does.
3. How will you present the deal? Ask what goes in the package and how many lenders will see it. Shopping a deal to everyone can damage it.
4. What have you closed that looks like this? Ask for comparable asset type, size and structure, plus a reference.
5. How are you paid and when? The answer should be specific and in writing.

Related: Commercial Multifamily Loans Guide · Underwritten NOI and Sources and Uses

Every loan is subject to underwriting and approval by the capital provider. California Business Capital is not a bank or direct lender.

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California Business Capital | Fresno, California | info@cabizfunding.com | 559-549-4717