Are my Loan Fees Excessive?

[Basit Siddiqi]

Hello Everyone,

Backstory
My 2 friends and I created an LLC to acquire real estate via financing.
We got into contract with 2 houses with a purchase price of $115,000 and $112,500.

We communicated with a lender(or so I thought he was a lender) who said he would be able to finance our projects.
2 weeks in and we find out that he found us a lender; so he acted as a mortgage broker.
I think his company couldn't finance our project and he still wanted to see if he can get paid on our project.
We recently got a good faith estimate from him and the fees seem excessive. Mostly because he's getting a fee for brokering us a lender. I am disturbed because his website shows him to be a lender and not a broker and I never signed any mortgage broker agreement.

anyway the fees are as follows.

Loan Origination fees - $3900($1,950 each)
Processing Fee - $995
Lender Fee 1% - $1,820
Lender Document Prep - $350

Furthermore, the lender he found us is providing us 1 loan that will blanket both properties. This guy still is adamant on charging us twice the loan origination fees.

The other fees are standard 3rd party fees not paid to lenders(appraisal, title, recording, transfer fees) that I found to be standard.

My last question would be - He said he reached out to 3 lenders; of which 2 said no before the final lender said yes(he said the lenders lend to LLC's but wouldn't lend to us because we were out of state investors). Is he required to answer who the other 2 lenders are if I ask?
It would make me feel better to know I got some information in exchange for the fees he's charging.

I would greatly appreciate everyone's feedback!

[Jason Hirko]

@Basit Siddiqi Is this a hard money loan? I think the fees are probably average, depending on where you are located. Not great, but not excessive. With that said, if he is making a point, and the lender is making 1.75 points, the lender is giving the broker some room to make money as you likely won't be able to get a loan at that rate.

With that said, I don't think you should be mad at the guy for trying to place your loan if he couldn't do it. You are under no obligation to continue, and while you say he was just trying to get paid, I mean yeah - it isn't for charity. A lot of people would have just said 'Can't do it' and then you'd be mad he took two weeks of your time to tell you that. At least he's trying to help you out.