Our debt placement fee
MCM agrees its debt placement fee in writing before engagement. It is due only if the loan closes. There is no MCM debt placement fee if the financing does not close.
Costs paid to other parties
Lender deposits, legal fees, appraisals, environmental work, title and other diligence expenses are separate. Some can be due before closing. Review the amount, payee and refund terms before authorizing an expense.
Separate consulting assignments
Sponsor consulting deliverables and compensation are agreed in writing for that assignment. MCM does not raise equity or charge equity-placement fees.
What is the fee applied to?
Read the definition of the fee base in the engagement agreement. A percentage of the initial advance can differ from a percentage of the total commitment when part of a construction or renovation loan funds later. Confirm that definition before comparing fee proposals.
For an arithmetic example, 1% of a $5 million fee base is $50,000. This is an illustration, not MCM’s quoted fee. The actual amount or calculation is agreed for the engagement.
Know what you are comparing
Ask for a written description of the work, not just a fee percentage. Preparing a financing package, reviewing lender underwriting, negotiating terms and coordinating diligence are distinct responsibilities. Confirm which are included and who handles questions as the transaction progresses.
Compare total transaction costs as well as the advisor’s fee. Lender charges, reserves and prepayment costs can affect the decision even when advisory compensation is identical.
Discuss your property financing or explore sponsor consulting.