This question is submitted by Scott W. out of Newark, NJ
We are in process of securing financing for our 40 unit condo association. We need these monies for a new roof along with a few other necessary repairs/improvements.
Overall, our association is in "acceptable" financial condition with over $50,000 in our capital reserves. The estimated cost for this project is approximately $250,000.
Our Management Company is asking a 5% fee to refer three lenders to us and cover all the "backend" work of securing the loan. The 5% they are asking for is roughly $12,000! My question is, Does that fee align with existing practices?
Would it make more sense for us to try to secure our own loan independent of the management company?
Will we really get a better rate, or are they just directing us to banks we can contact ourselves?
Thoughts?