Commercial loan brokers should never talk about T and A because the use of these words will almost always open up a can of worms that will kill your deal.
Now I am not talking about ta-ta’s and booty. The t-word I am talking about here is toxic report. The a-word is appraisal. The wise commercial mortgage broker avoids the t-word and the a-word like the plague.
Why? If you’re the first commercial loan broker who has to tell the borrower that he will eventually have to pay $2,500 (to $3,500) for a toxic report and $3,000 (to $5,000) for an appraisal, I guarantee that you will lose the deal.
The borrower is going to be horrified. Oh my goodness! He won’t believe you when you tell him that such third party report fees are quite normal in commercial mortgage finance. He will feel compelled to shop to other lenders in hopes of finding a bank that will do such reports in-house. (Good luck with that!)
After three or four other banks and commercial mortgage brokers tell him the same thing, he will finally accept the fact that he is going to have to shell out big bucks up-front for the third party reports. But that won’t help you a bit. You will have already lost the deal.
Therefore, be smart. Never talk about T and A. Don’t even use the words. If they slip out of your mouth, know that you have just killed your own deal. Go wash your mouth out with soap.