Is there a difference on how commission splits are handled between commercial loans & residential loans?

Question by Tanya P: Is there a difference on how commission splits are handled between commercial loans & residential loans?
I am looking to get into a mortgage career in California, and was wondering the difference between how commercial loans and residential loans commision splits are handled, since there is a larger amount of money people are borrowing between the two? ( if the is one) ….
If they vary between companies. Could I just get a basic example of each split? ( i.e. I know with Res. loans, you can make commision off of “points” or % of the loan), does that system work for Commercial as well with certain companies? Or is it something totally different?

Best answer:

Answer by matzael
That entirely depends on brokerage/bank you’re working with and varies wildly. It’s a great question for you to ask in your interview. Keep in mind that the responses will vary, even in your local market by a huge amount.

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One comment

  1. Danny O says:

    Residential Loans will take about a month to close and commercial will take about 3 months on average. It all depends on which company you work for as well and what splits they are willing to pay. If you are licensed with experience you can get 100% with some brokers.

    1 point = 1%. It is the same throughout all types of real estate transactions and is a fee structure that is used by almost everyone in the field.

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