Real-World Example

The Broker Advantage:
How Competition
Wins Better Terms

A step-by-step walkthrough showing how one borrower saved over $180,000 by working through a loan broker instead of going directly to a single bank.

The Scenario

The Deal on the Table

A Colorado-based real estate investor needed to refinance a 12-unit multifamily property in Denver. He had an existing bank relationship and assumed that would be his best option. Before signing, he reached out to Commercial Capital Connector.

What followed is a textbook example of how broker-sourced competition delivers a measurably better outcome than any single-lender relationship.

Deal Overview
Property Type 12-Unit Multifamily, Denver CO
Current Value $2,400,000
Loan Amount Requested $1,680,000 (70% LTV)
Annual NOI $156,000
DSCR 1.31x
Borrower Credit Score 748
Loan Purpose Cash-Out Refinance
Lender Competition

Five Lenders. One Application.

Within 10 business days, Commercial Capital Connector presented the borrower with term sheets from five lenders. Here's how they compared.

Lender Rate Points Amort Prepayment Annual Payment 5-Year Cost
Regional Bank (Existing Relationship) 7.875% 1.0% ($16,800) 25 yrs 5-4-3-2-1% $152,844 $781,020
National Bank A 7.625% 0.75% ($12,600) 25 yrs 3-2-1% $148,596 $755,580
National Bank B 7.50% 1.0% ($16,800) 25 yrs 5% flat (yr 1-5) $146,484 $749,220
Credit Union / CDFI Best Terms 6.875% 0.50% ($8,400) 30 yrs Step-down 3-2-1% $133,332 $675,060
Debt Fund 8.25% 2.0% ($33,600) 20 yrs None $168,840 $877,800

Annual payment calculated on a $1,680,000 loan. 5-Year Cost includes origination points plus 5 years of debt service payments. Rates are illustrative based on actual market conditions.

The Results

What the Borrower Gained

$106,980
5-Year Payment Savings

Compared to his existing bank's offer over the first five years of the loan.

%
1.0%
Rate Reduction

From 7.875% to 6.875%—a full 100 basis points lower than what his bank offered.

5 Yrs
More Favorable Prepayment

Shorter step-down prepayment penalty vs. the bank's 5-4-3-2-1 schedule, preserving exit flexibility.

$181,380
Total Economic Advantage

Including reduced origination points ($8,400 vs $16,800) plus 5-year payment savings of $106,980 plus lower points savings.

The Process

From First Call to Closed Loan

Day 1
Initial Consultation

Borrower reached out with deal details—property type, loan amount, current rate, and goals. We reviewed the rent roll, existing financials, and had a clear picture of the deal within 24 hours.

Days 2–3
Package Preparation

We assembled the loan submission package: property details, rent roll, operating statements, borrower financials, and an executive summary positioning the deal's strengths to lenders.

Days 4–10
Simultaneous Lender Outreach

The package was submitted to eight lenders simultaneously. Five responded with term sheets within the 10-day window. We reviewed each offer in detail, identified key differences in rate, fees, prepayment, and structure, and prepared a side-by-side comparison for the borrower.

Day 12
Borrower Selects Best Terms

Armed with five competing offers, the borrower selected the credit union term sheet—6.875% with a 30-year amortization, 0.5 points, and a 3-2-1 step-down prepayment. We negotiated a further rate reduction of 0.125% based on competing offers.

Day 45
Loan Closed

The loan closed 45 days from first contact. We managed all lender conditions, coordinated the appraisal and title, and remained actively involved through funding. The borrower received $1,680,000 at the terms selected, with no surprises.

The Broker's Role

Why a Single Bank Can Never Offer What a Broker Can

  • A bank can only offer its own products. A broker brings the entire market to your deal.
  • Without competition, there is no incentive for a lender to sharpen their pencil on rate, fees, or structure.
  • A broker knows how to package and position a deal to maximize lender interest—and knows which lenders are most aggressive for specific asset types.
  • The broker's fee is typically offset—or more than offset—by the improvement in loan terms achieved through competition.
Ready for Your Own Outcome?

Let's Run Your Deal Through Our Network

Every deal is different. Contact us for a free analysis of your specific situation and see what competition can do for your terms.