Commercial Loans and Fun Blog

Commercial Loans and Brokers of Record

Posted by George Blackburne on Thu, Aug 18, 2016

Courtroom.jpgThis training article actually matters to a great many of you, whether you are arranging commercial loans or selling income property across state lines.

Now as you probably know, I am an attorney, licensed in California and Indiana.  Now let's suppose that I had a long-time Indiana law client who had a contract dispute with an Illinois company, and my client wanted me to represent him in Illinois in a suit against this Illinois company.  There is a legal procedure for me to do this called "appearing pro hoc vice."


Free List of 3,159 Commercial Lenders  Sort By Your Own Criteria


Pro hoc vice (pronounced pro-hock-veechey) is a Latin term that means "for this occasion" or "for this event."  It is a legal term usually referring to a practice in common law jurisdictions, whereby a lawyer who has not been admitted to practice in a certain state is allowed to participate in a particular case in that state.  Now I would be required to "associate in" an Illinois attorney to supervise me and to make sure that I complied with Illinois state law and the local rules.




I promise that the relevance of this article to you will be made clear in the next paragraph. The relevance to commercial real estate brokers selling commercial-investment property will be made clear in the paragraph after that.

Okay, now let's suppose that you have a long-time Utah loan client who wants you to arrange a commercial loan for him on a property in Arizona - a state where a commercial loan broker needs an Arizona mortgage broker's license.  Can you legally arrange this loan?  Answer:  Only if you associate in an Arizona mortgage broker (and pay him $500 or so).

Now if you are a commercial real estate broker, legally licensed in Utah, and you have a long-time Utah investor client wishing to buy a commercial-investment property in Arizona, you will need to associate in a legally licensed Arizona real estate broker.  In the parlance of commercial brokerage, you will need to have him serve as your broker of record.  But, if you do it right, I am pretty sure that you may legally help your long-time Utah client buy a commercial-investment property in Arizona.




The reason this subject came to mind today is because I received this week an interesting email from a company advertising to commercial brokers, offering to serve as their broker of record.  Now I had never heard of a broker of record service before, but when I googled, "broker of record services", I found quite a few companies offering this service.

Now this one company charged the higher of $1,500 or 3% of the total commission; e.g., 3% of 6%.  It sounded like a reasonable price to me to pay to keep your tush out of jail.

Keep looking for the contact information (the contents of a business card) of any banker making commercial real estate loans.  We'll trade you that information for a free directory of 2,000 commercial real estate lenders.


Free Directory of 750+  Commercial Real Estate Lenders



Have you created a link to on your real estate web site yet?  The links should say "Commercial Loans" or "Commercial Mortgages" or "Commercial Real Estate Loans" or "Need a Commercial Mortgage?"

Remember, the home page of is programmed to automatically capture the referring URL (the address of your web site) and to print it at the bottom of the corresponding C-Loans application.  When the deal closes, we look up the lucky guy who put the link to on his website and notify him of the big referral fee check waiting for him.  We once paid Alan Dunn of a $21,250 referral fee on a $17 million land loan application that came from his site.


Earn a $21,250 Referral Fee  In Your Sleep


Do you need a lender who will allow a negative cash flow?  Do you need a lender who will also look at the borrower's global income - income from salaries, other investments, etc.?  Do you need a lender who will allow the seller to carry back a second mortgage? Does your client have a balloon payment coming due on his commercial property? Has your bank offered him a discounted pay-off? Does your borrower have less-than-stellar credit? Is your client's company losing money? Is your borrower a foreign national? Do you need a non-recourse loan? Do you need a commercial loan with no prepayment penalty? Is your client's commercial property partially vacant?


Apply For a Commercial Loan to Blackburne & Sons


Do you have a squeeky clean commercial mortgage loan that deserves to be financed by a life company, conduit, or a commercial bank?


Submit Your Loan to 750 Commercial   Lenders Using  It's Free!


I keep telling you commercial brokers that there is no easier way to meet high-net-worth investors than to open up a little commercial mortgage brokerage operation (a desk and a phone) in your real estate office.


Nine-Hour Video Training Course  How to Broker Commercial Loans


Want to receive free training in commercial real estate finance?


Subscribe To Blog


Got a buddy or a co-worker who would benefit from learning commercial real estate finance?


Forward To a Friend



Topics: Broker of record service