Commercial mortgage brokers

[Jeffrey Kovnick]

$8,500,0000 property; $3million down, 65% leverage (so $5.5 million loan). CBRE is my broker, they receive 2.5% buyers agent commission. I was told that they would help me through the loan process. So, today when speaking with that department, I discovered that they would like an additional 1% (of loan) to help with obtaining loan, providing advice on financing, and helping me through the process of getting necessary things to the banks (title reports, documents, ALTA, environmental report, etc). I had naively thought this service was part of the broker commission. So, is this 1% typical? If not, where else can I look. Or, is paying a premium for CBRE going to be worth the upfront fees?

[Nicholas Covington]

@Jeffrey Kovnick it does seem that everyone is missing your point. I would check to see what they are really labeling that charge. Are they requesting you to pay it upfront? It is added to the origination charge of doing the actual loan? I don't charge people to "shop" loans as I am paid when I close on the loan and that is my "origination fee." Not sure what kind of fee they are charging just to locate funding.