A Day in the Life of a Commercial Real Estate Financial Intermediary

Working with a financial intermediary is not as dirty as it sounds even if finance is the world’s second oldest profession…

What is the role of a financial intermediary?

A financial intermediary is an institution or individual that serves as a middleman between real estate capital sources and borrowers in order to facilitate real estate debt and equity transactions.

The role of the financial intermediary is to act as a conduit between a borrower and the lenders. The financial intermediary puts together a loan package based on the information provided by the clients.

Financial intermediaries package the loan up in a way that is descriptive, provides all the salient loan points, and identifies both the plusses and minuses of the deal for the various capital sources.

Financial intermediaries maintain relationships with all types of capital sources including money center banks, regional banks, local banks, credit unions, life insurance companies, Wall Street investment banks, pension funds, debt funds, hard money lender, mezzanine lenders, preferred equity sources…