Submitted by Wm Krebs, Aug 19, 2008 11:15

Mr. Estis, That is an interesting point that you make regarding commercial loan brokerage in this current environment. I have not given much consideration to the new capital sources that will be necessary to survive going forward for both the small, medium and large real estate investors. What do you believe accounts for your large increase in business over the last year and do you believe that trend will continue? and why? Is it because the small/medium sized investor cannot find financing locally or from their traditional 2 to 3 bank network so they then don't have the skills to search elsewhere? Are their additional costs that you charge on top of what the commercial lender charges or does the commercial lender reduce their fee's charged since you do all of the underwriting, research, analysis, etc? I am just trying to figure out the benefit of the commercial loan broker to the commercial bank. I can see it as a benefit to the bank if they do not carry the lender overhead, assistants, office space, etc. and then just rely solely upon commercial brokers to generate fee income and outstanding loan balances. I just haven't given this much consideration but find your comments interesting. Best, Wm

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