The broker who talked me out of a $2M deal in Dallas

I was sitting in a coffee shop in Dallas last spring, about to sign off on a mixed-use property with a bridge loan that seemed perfect. The broker, an older guy named Rick, pulled me aside and said, "You got the right numbers but the wrong lender for this one." He spent 20 minutes showing me how the prepayment penalty would eat my exit strategy alive if I refinanced early. I pulled out of the deal, and three months later rates shifted and that bridge lender changed their terms hard. Has anyone else had a broker save them from a bad deal like that?

2 comments

2 Comments

tessa_hill862d ago

Man that's the kind of wisdom you just can't buy. It's like when a mechanic tells you not to fix something that's still running fine, you just gotta trust the ones who've been around the block.

patel.leo2d ago

Read a piece in The Real Deal last month about how a lot of these bridge lenders are tightening their terms on the back end. It basically said the prepayment penalties are the new hidden fee they use to squeeze people who try to exit early. Your broker saved you from that exact trap. I bet a ton of people signed deals like that and got burned when rates moved. Smart move listening to him.