One executive shares the key to getting CRE deals done, and why they fall apart
Working through the complexities of commercial real estate loans can be challenging for borrowers, brokers, and lenders.
Because competition for commercial properties can be fierce, the loan process can be far more complicated than a typical residential mortgage. However, one CRE veteran believes there are ways to improve the process.
Nathan Cohen (pictured top), head of the CRE division at LBC Capital Income Fund, stresses that improved communication between all parties can help get deals across the finish line.
One of the things that Cohen believes could help is a fee agreement between the borrower and the broker.
“What I would recommend to my best friend or little brother is to interview a number of commercial mortgage brokers,” Cohen told Mortgage Professional America. “Tell them what you're trying to do. Be forthcoming about your net worth, liquidity, experience, and whatever questions they may ask. And after you interview a number of them, pick one.
“Explain to them, ‘Hey, look, I understand you don't get paid until the deal gets done, but I need you to put your time and effort into working on this transaction for me. So for you to feel protected, I'm willing to sign an exclusive fee agreement with you for a period of time.’”
Shopping around for a deal
Cohen also explains it from the standpoint of an intermediary in the process and how signing that fee agreement can enable transparency for all parties.
“If I'm wearing my intermediary hat, I know that at least I'm going to be protected here,” Cohen said. “I can take the time to put in the necessary work to do this. As opposed to, if I know someone is talking to 30 other guys, I may pick up the phone and call one or two lenders I think may like it. And after that, why would I continue to do anything?”
If a borrower or broker is shopping around to multiple lenders, a lender that Cohen would contact to help facilitate the deal might be hearing about the same one multiple times.
“Because as an intermediary, if you're the lender, and I call you up and I say, ‘Hey, I've got a great deal: It's a shopping mall in Bentonville, Arkansas,’” he said. “And you're like, ‘Nathan, come on, man, I've seen that deal 15 times today from 17 different people.’ Then it discredits me. It disheartens me. It discredits the borrower. The lender thinks that the deal's horrible. It’s just not a good way to go.”
Cohen also suggests that when approaching an intermediary who will help pitch a deal to lenders, be as upfront as possible. This can even include a list of places not to contact, as some lenders may have already turned down the deal.
“I would tell them, ‘Hey, listen, I know this is a complicated deal, and I'm sure you've talked to a number of people,’” he said. “’I don't want to cause your transaction to look bad. I'm willing to sign a non-disclosure. Why don't you give me a list of the people I should not contact?’ Good luck getting that, but if you're dealing with a sophisticated borrower, they'll tell you, ‘Hey, I've talked to XYZ lender, and I've talked to ABC lender, and here's why they've all said no.’
“And then maybe the next step to filter that through is to tell them, ‘If you looked at an apartment building, have you looked at doing a HUD loan, a Fannie Mae loan, a Freddie Mac loan, a bank loan, a CMBS loan, a life insurance company loan? Which one of these have you looked at already?”
Comparing apples to apples
Another thing that can help Cohen get a deal approved is knowing what kind of quotes the broker has already obtained for the borrower. While they may not specify which lender gave them the quote, they should be able to say what type of loan is being quoted.
“The other opportunity for education would be, ‘Hey, you said you got a quote you're looking to improve on it. What kind of quote do you have?’” Cohen said. “And if the borrower can't say, or even if they don't want to disclose the lender, which is at times understandable, they should, at a minimum, be able to tell you the type of loan.
“I've lost loans a long time ago, when I've offered someone a 4.5% rate, and it was a 10-year fixed. They never wanted to sell the building. They didn't want to have to refinance it again. But they instead took a deal that was 4.25% because the rate was lower, but it was only fixed for three years. You need to make sure you're comparing apples to apples, and make sure you understand the whole picture.”
Max Slyusarchuk, founder of A&D Mortgage, is advocating for an end to Florida’s higher condo down payment rule. He says the adjustment could increase liquidity, stabilize the market, and improve housing affordability for residents.https://t.co/9AZlfHlOS8
— Mortgage Professional America Magazine (@MPAMagazineUS) November 18, 2025
He said it goes back to having that fee agreement upfront because it allows for disclosure of the lender, which can take some of the mystery out of the potential deal.
“If I have a fee agreement signed with the borrower, I can move the deal a lot faster along,” he said. “Because now that I have this fee agreement, I can now disclose the lender. I don't need to have this unnecessary air of mystery of who this lender is. We can get all the people talking. I found that more often than not, a consistent flow of information from point A to point B, without there being a pit stop in the middle, is a really efficient way to get deals done.”
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