Commercial Lending - Non Bank

[Collin Wilson]

I am in the process of doing a cash out refinance of a SFH. We are looking at a commercial loan (to place into an LLC). I was referred to a lender who is not affiliated with a bank or major institution, something I am not at all familiar with so apologies for my ignorance on this. He collects the data and sends it out to hundreds of different lenders. He says he is confident he can get an investment loan for a fixed 30 at 3.75-4.25. There is a processing fee (upfront) of $1750 and then a success fee (due at close) of 2% of the closing cost. Obviously I am suspicious and I wanted to get thoughts or experiences with similar lenders? Any help is greatly appreciated.

[Collin Wilson]

@Matthew Crivelli

Thanks so much for your response and it totally makes sense. The crazy part is the guy was actually referred and is somewhat reputable from my area (not some guy from across the country). Either way your point makes sense and I appreciate the advice, which I plan to follow!