https://finance.yahoo.com/news/gparencys-innovative-flat-fee-brokerage-202000044.html
FLAT FEE FOR SHOPPING DEALS
LETS OWNERS LEVERAGE QUOTES
WITH THEIR OWN LENDERS
HOWELL, N.J., Sept. 16, 2024 /PRNewswire/ — GPARENCY, a Howell, NJ-based commercial real estate mortgage brokerage, has launched a first-of-a-kind, flat-fee, “shop the deal” brokerage model that has attracted business from more than 90 owners and borrowers nationwide since its launch August 1.
Under this innovative approach to commercial brokerage, owners and borrowers pay a single $4,500 flat fee to GPARENCY, which proceeds to shop the deal to targeted lenders among its national network of 3,000 banks.
“I would never have expected to get the benefit of the full broker experience for only a flat fee of $4,500,” said Joseph Safdie of Jsaf Capital, a GPARENCY client. “But now, I am already a repeat customer. GPARENCY gave me the market intelligence and the confidence to take the deal to closing by myself.”
GPARENCY identifies the best offer by shopping the deal to multiple lenders, ensuring clients get the most favorable terms. Borrowers are then able to close a highly desirable transaction by leveraging GPARENCY’s best quote among their own, existing network of lenders or brokers. Clients can also choose to close directly with the lender offering the best terms, without incurring additional brokerage fees.
Or, for an additional fee, clients have the option of having GPARENCY run the process of closing the deal.
“In today’s opaque market, clients often lack the transparency they need to make informed decisions,” said Ira Zlotowitz, founder and president of GPARENCY. “Under the conventional system, clients can never be sure if they’re getting the best rate or structure. Now, for the first time, the GPARENCY model takes the uncertainty out of dealmaking.”
Traditionally, brokers only offer access to their limited lender network, often leaving borrowers unsure if they’re getting the best deal. GPARENCY’s model changes this by shopping a deal across thousands of lenders for a fixed fee. Borrowers can still use their own broker or bank. Or they may go directly to the best-priced lender, as identified by GPARENCY. They may also work with this lender through their preferred broker. Or they can work with GPARENCY throughout an entire transaction.
“There’s no equivalent of a Bloomberg terminal, Rocket Mortgage, or Google Flights to easily compare and secure the best rates,” Mr. Zlotowitz said. “Plus, even the best mortgage brokers are limited to their own network of banks. And brokers avoid deals where they aren’t the primary player, fearing wasted effort if the client goes direct or uses another broker.
“GPARENCY solves the client’s dilemma by being the only brokerage that charges a fixed fee to shop the deal,” said Mr. Zlotowitz. “This ensures clients can explore multiple options without committing to a single broker’s limited network.”
Unlike GPARENCY, every other broker will charge a large commission to shop a deal. In contrast, GPARENCY finds the best pricing by tapping into its network of 3,000 lenders, while only charging a fixed fee.
“I was highly impressed to get great terms on my SBA loan, all for an affordable, flat fee,” said Joseph Steinberg, another GPARENCY client. “I chose to engage GPARENCY to run my deal for an additional fee. Had I gone the conventional route, I would have ended up paying more than eight times my entire fee to achieve the exact same outcome. I saved a great deal of money by using GPARENCY.”
Recent GPARENCY success stories include a $14-million, multifamily transaction in Tennessee, where the company’s “shop the deal” offering lowered the interest rate by 26 bps and added an extra year of interest-only payments. This boosted cash flow for the client.
This summer, GPARENCY shopped a North Carolina construction loan to 34 lenders. As a result, the borrower was able to secure a $9.5-million construction loan to replace his existing loan of $7.1 million — and adjust the scope of his project accordingly.
The company also closed on financing for a $300,000 project in Chicago for David Weinschneider, a Chicago-based real estate investor who focuses primarily on smaller and more distinctive projects.
“I was thrilled to be able to engage a top-tier, national brokerage to work on a deal of this size,” Mr. Weinschneider said.
GPARENCY has hired 100 originating brokers across 36 states since last December.
“Our approach ensures that clients end up with the best possible deal while maintaining their preferred relationships,” said Mr. Zlotowitz.
For those unsure about the upfront fee, GPARENCY offers a free, no-obligation review where the company’s top brokers analyze a deal’s potential. Clients can then decide whether to proceed with the fixed-fee service or to opt for conventional brokerage services at half a point, capped at $100,000. According to Mr. Zlotowitz, GPARENCY is the only mortgage brokerage in America offering a capped fee.
GPARENCY works with a network of more than 3,000 lenders nationwide and regularly submits approximately 250 loans for review by around 800 banks. For a typical deal, GPARENCY narrows down the list of lenders based on geographic location, property type, loan size, and the client’s specific needs, creating a targeted list. The company usually sends the deal to 25-35 lenders and narrows it down from there, unless the client requests a more focused approach. There is no minimum loan size for clients to derive value from GPARENCY’s services.
About GPARENCY
GPARENCY is the first and only brokerage in the commercial mortgage industry to offer a transparent, fixed-fee service. For a flat fee of $4,500, GPARENCY shops a deal, providing borrowers with the intelligence to negotiate within their own network of existing relationships. Borrowers may also choose to tap GPARENCY’s full brokerage service at half a point, capped at $100,000, paid at closing. No other company offers this level of transparency and dedication to securing the best terms for a transaction. For more information, contact connect@gparency.com.
