Larger volume
From about €750,000 capital requirements, competition pays off: a few basis points condition advantage quickly exceed the mediation costs.
Adviser · Intermediary Check
When Does Using a Property Finance Broker Make Sense?
Does it really need an intermediary between project and capital – or is the existing bank sufficient? This guide honestly answers when a real estate loan broker makes sense, what it costs, where its limits are and how you recognize reputable providers.
Performance picture
What a Real Estate Loan Broker Really Does
The core service is not the “passing on” of a request – but Market access, structuring and negotiationA good real estate loan broker knows the current lending criterias of banks, debt funds and institutional lenders, knows which address finances which risk, and prepares inquiries so that credit committees can decide efficiently.
In addition, there is the competitive effect: Who only asks his existing bank, gets an offer – without comparison standard. The intermediary addresses several suitable lenders in parallel and makes conditions negotiable. For larger volumes, a few basis points margins decide on six-figure amounts; the services in detail shows our page Real estate finance intermediaries.
- Market overview: who currently finances what – knowledge that changes monthly.
- Structuring: Senior, mezzanine, whole loan or bridge – the appropriate capital stratification.
- Preparation: Committee-capable documents instead of question loops.
- Competition: Parallel address for real comparison offers.
The check
Five Situations Where the Real Estate Loan Intermediary Makes Sense
Complex structure
Multiple tranches, ranking questions, MaBV, portfolios: As soon as standard products do not fit, structuring competence decides on feasibility.
House Bank Says Down
A bank cancellation rarely means “unfinanceable” – usually only “does not fit into the grid”. Alternative lenders think differently; you have to know them.
Time pressure
Notary appointment, bidding procedures, expiring fixed-rate period: Parallel address and established processes save the weeks that count.
No market access
Debt funds and family offices do not advertise – access runs through relationships. Exactly this network is the currency of the intermediary.
When not before?
Standard mortgage financing with a good existing bank offer, small volumes, no time pressure: Then the intermediary is dispensable – we say so.
Costs
What the real estate loan broker costs – and when it pays off
Serious intermediaries work Success-related: The remuneration – depending on volume and complexity, usually in the low single-digit percentage range of the loan amount – is only incurred at conclusion and is agreed in advance in writing. Prepayment for “checks” or “reservations” is a warning signal, not a market practice.
The calculation behind this: With €3 million loans, 20 basis points margin already saves around €6,000 per year – more than five years than the mediation costs. In addition, there are incalculable effects: higher probability of closing, faster commitments, better secondary conditions (covenants, collateral, early maturity). And the time gain of the entrepreneur, who leads his project instead of collecting bank appointments.
For Alternate Capital: Success-related compensation, agreed in advance transparently, initial estimate free of charge – and an honest “is not worth it” if your existing bank already delivers the best offer.
Honest classification
The limits: what even the best mediator can not do
- Making weak projects strong: A lack of own funds, unrealistic calculations or a lack of exit cannot be “mediated away” – lenders examines substance.
- Guarantee conditions: Anyone who promises fixed interest rates before the examination, sells a product, not mediation. Only term sheets can be loaded.
- Replace banking relationships: A grown existing bank relationship remains valuable – the intermediary complements it with competition, he does not necessarily replace it.
- Wonders of timing: Parallel address also requires testing time; anyone who starts a week before a notary’s appointment needs a Bridge financeNot a magician.
Selection
How to recognize a reputable real estate loan broker
Criterion 01
Permission and supervision
At least § 34c GewO (for consumer loans § 34i) with a designated supervisory authority – readable in the imprint, as in Ours.
Criterion 02
Transparent remuneration
Success-related, in writing, without advance payment – and without hidden surcharges on the condition.
Criterion 03
Verifiable specialisation
Clear focus (e.g. B. commercial real estate finance from €750,000) instead of “everything for everyone” – plus referential financial statements.
Criterion 04
Honest initial consultation
Anyone who cancels in the first estimate or advises to the existing bank, works in your interest – not at the next conclusion.
Frequently asked questions
Real estate loan broker – briefly answered
Does the intermediary make my loan more expensive?
As a rule, no – the competitive effect usually significantly overcompensates for the compensation. Transparency is crucial: remuneration and conditions must be shown separately.
How does the intermediary differ from the debt advisor?
The classical intermediary places a finished request; Debt advisory starts earlier – structuring, documents, approach strategy. With Alternate Capital, both belong together.
Does Alternate Capital also work with private customers?
Our focus is on professional projects starting with €750,000 capital requirements – property developers, property developers, investors, property investors. We do not depict private standard construction financing.
How do I start the collaboration?
With the basic data about the Initial assessment – You will receive an honest classification within 1–2 working days including the answer as to whether a mandate is worthwhile for you.
Process
Real Estate Loan Intermediary: This is how the cooperation works
Whether a real estate loan broker makes sense is shown by the concrete course of cooperation. At the beginning is the free initial estimate: The intermediary examines the project, own funds and time frame and honestly says whether a mandate brings added value at all – or whether the offer of the existing bank is already good. It is precisely this openness that distinguishes a reputable intermediary from the pure closing seller.
If the decision for cooperation is made, the real estate loan broker prepares the request in a committee-ready manner: exposé, figures, collateral concept and the answers to the questions that credit committees typically ask. He then addresses several matching lenders in parallel – the decisive step that opens up competition for financing and improves conditions.
At the end is the comparison of the term sheets and the negotiation. A good real estate loan broker translates the small print into figures and negotiates not only the interest, but also repayment, provision interest and covenants. Because the remuneration is performance-related, the process usually pays off for the customer through better terms and a higher degree of security.
Next step
Check us with your project
Submit the key data – if an intermediary mandate does not add value to your project, we will tell you exactly that.
About the author
Jürgen Kronawitter
Jürgen Kronawitter specialises in structured real estate finance. He helps property investors, developers and portfolio owners implement complex financing solutions. His work focuses on structuring and arranging senior loans, whole loans, mezzanine capital and bridge loans, as well as tailored financing for acquisitions, investment properties, developments and refinancing. By combining conventional bank lending with alternative capital sources, he develops financing structures for domestic and international property projects.
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