Posted by Linda Mathieson on 6/3/09 2:08am
Msg #290955

commercial signings

I was recently asked to do commercial signings and having never done one I am not sure what this entails or how much to charge for the service. Also I was asked to do a home inspection.I was told it was to check on the house to see if the proper appliances were there and if everything was in working order..no license needed in the state of Wa.I declined the offer but am curious about it and would welcome someones' experinced opinion. thanks alot!

Reply by Lee/AR on 6/3/09 2:30am
Msg #290956

Limited experience, but commercial signings can be very involved, lots of people attending, possibly huge pile of paper, possibly must go out same day. It is imperative that you ask a lot of questions--and get answers.

Never done an Inspection such as you outlined. How would you know if--say, a dishwasher was working properly? And what would your liability be if it wasn't? (Ours started leaking--how would you know that without it going thru a whole cycle?) Would you have to stand around and wait until the heat came on, then the a/c? Again--lots of questions.

Reply by lindalee on 6/3/09 2:31pm
Msg #291010

good points-thanks for your input..do you know if you have to be licensed or certified?

Reply by sue_pa on 6/3/09 7:12am
Msg #290960

possibly very easy ... possibly VERY involved with things you have never, ever seen before. Your signers may be signing personally and/or on behalf of a business (in PA that means EVERY ack gets changed to show their capacity). I truly cannot believe these are done in the field and I also cannot believe someone would hire you with no experience doing one. The last one I did I charged in excess of $300 and it took hours. I am not exagerrating ... the stack of docs was 1 foot high. Buyers didn't show up for an hour after the appointed closing time, the realtors were still running back and forth getting leases transferred, the lawyer went into his office to attend to other work ... a HUGE orchestration was required on my part ... and I got the loan docs signed and actually left before the closing was completed and the attorney handled the final details because they were still negotiating.

Did one for a guy who was purchasing a salad works franchise not too long ago and it was a snap - no real estate involved on the commercial end since he rented space in a mall. Most docs were securing his equipment. Separate loan was included securing his residence.

Did half for one with partners in PA and partners in 2 other states ... they owned a franchised hotel and were pledging assets from several different LLCs and also personally ... those guys just signed away because their partners signed earlier in the day in another state in their attorney's office who gave the go ahead on my end.

Reply by Charles_Ca on 6/3/09 12:08pm
Msg #290995

Re: commercial signings ~ I have to agree with Sue...

I am a commercial real estate broker and originate commercial loans. Commercial loans are different, not necessarily more difficult but definitely different and you need to be able to understand a lot more than just real estate since most include chattel. Be sure you are familiar with the UCC forms and understand the difference between real and personal property since most are a combination of both. There are rarely rescission documents and while there is a settlement statement it is not in a standard format such as the HUD-1. HUD is not involved and neither is RESPA so you are on your own. I agree with Sue that if you have no experience in doing them don't or you will give yourself a bad name. There is such a thing as small cap commercial and those are easy but most commercial loans are technical and involved and unless you know what you are doing you leave yourself exposed to all kinds of liability that your E&O will not cover.

Reply by lindalee on 6/3/09 2:36pm
Msg #291012

Re: commercial signings ~ I have to agree with Sue...

Yikes! You guys are scaring me! It sounds like this will take alot of studying but also sounds financially feasible...any tips on where to get more info or any particular books to reference? Your comments have been enormously helpful- thanks

Reply by LKT/CA on 6/3/09 11:04pm
Msg #291092

Re: commercial signings ~ I have to agree with Sue...

Lindalee, I think the only way you'll learn about commercial loan signings is to know someone who's in the business. The only way I can think of to accomplish that is to network - through your city's chamber of commerce or other networking groups. Be visible at their luncheons, mixers, breakfasts, etc. It will take time but eventually someone will know someone, who will know someone else who can introduce you to a commercial lender/broker and that will be the beginning of things.

For me, networking has been the best way to build trust and forge new business relationships. I now have connections with 3 types of attorneys that I notarize for regularly - an estate planning attorney, a criminal defense attorney, and a family law attorney. And I know a mortgage banker in the business for 30 yrs - did several loan signings for him recently - all from showing up to networking meetings professionally dressed, getting to know people and being visible on a regular basis.

Reply by lindalee on 6/4/09 12:09pm
Msg #291137

Re: commercial signings ~ I have to agree with Sue...

Thanks for the advice, you have given me the push I needed to join the local club. I have been invited several times but it seems I have 'business commitment phobia'. Thanks for the incentive. Linda M.

Reply by Curtis Hull on 6/3/09 8:01am
Msg #290965

Most commercial signings a relatively easy. You should charge between 200-500. The long involved ones usually are the large office buildings with a bunch of tenants. The field inspection you were asking about would need you to turn on all appliances to make sure they were working

Reply by lindalee on 6/3/09 2:38pm
Msg #291015

Hi Curtis! Thanks for the info and may I ask if you have done field inspections and what is the usual fee charged? Appreciate any info provided!!! Lindalee