Bridge financing is the deal type where broker fee structure goes wrong the most often — because the speed of bridge (7–14 day close from term sheet) doesn't leave room for renegotiation. Whatever you document at intake is what gets paid at close. Brokers who get burned on bridge fee splits almost always got burned because the engagement structure was vague going in.
The two common fee split structures on bridge
- 50/50 of borrower fee — borrower pays 1.5–2% at close, split evenly between originating broker and capital partner. Used when the broker stays involved through underwriting, manages the borrower relationship, and handles communication. Each side typically takes 75–100 bps of the loan amount.
- Referral fee — borrower pays 1.5–2% to the capital partner as the full broker fee, capital partner pays the introducing broker a flat 50–100 bps. Used when the broker hands off the borrower and doesn't stay in the workflow. Faster for the broker, lower take.
Why bridge is different from permanent or DSCR
On a 60-day permanent loan close, there's time to renegotiate, restructure, and re-paper the engagement. On a 10-day bridge close, there isn't. The term sheet drops on day 2, the appraisal and title are ordered immediately, and by day 7 the deal is at commitment. If you discover the fee structure is unclear on day 8, you're either taking a worse split or killing the deal.
The discipline: lock the engagement letter and NDA before submitting the deal. Not after the term sheet. Before.
How it should be documented
- NDA signed by the capital partner before borrower name or deal specifics are shared
- Engagement letter signed before submission — specifies split percentage, who pays whom, wire instructions for the broker's portion, and timing (paid at closing, simultaneous with loan funding)
- No-solicit clause in the engagement — 24 months on the borrower and affiliated entities
- Fee disclosure on the closing statement: broker fee broken out as a line item, with the broker's share wired directly to the broker's firm at close (not routed through the capital partner)
- Confirmation of payment in writing within 48 hours of closing — broker shouldn't have to chase the wire
What kills the deal
- Vague engagement ("we'll figure out the split when we see the deal") — this never ends well; by closing, the capital partner controls the borrower relationship and the broker has no leverage
- Surprises at close — fee shrinks, structure changes, capital partner introduces a new "co-broker" who needs a share. If it's not in the engagement, it shouldn't appear at close.
- Renegotiation pressure during underwriting — capital partner asks the broker to take a lower split to "save the deal" with the borrower. Hold the line or walk; either keeps the relationship clean.
- Capital partner that demands the broker step out of borrower communication post-term-sheet — this is a setup for solicit on the next deal
- No-solicit clause limited to the current deal only (not future deals from same borrower)
What a good bridge capital partner looks like
The bridge capital partners worth working with as a broker share three traits. First: they sign NDAs and engagement letters within hours of receiving them — no delay tactics, no "we don't sign NDAs." Second: they disclose the capital source per deal. Bridge is a balance-sheet-or-fund product; the broker should know whose money is funding the deal. Third: they hold the line on fee structure at close. The borrower pushes back on the broker fee occasionally — a good capital partner pushes back with the broker, not negotiates the broker down to placate the client.
On the operational side: term sheet in 24–48 hours of clean submission, weekly pipeline call during underwriting, clean wire at close. Bridge moves fast and rewards capital partners who match that velocity.
How this differs from broker-lender-fee-split-cre
The general broker-lender fee split mechanics apply across all CRE products. Bridge-specific differences: tighter timeline means no room to renegotiate, the no-solicit clause is more important (bridge borrowers are usually repeat borrowers who do multiple deals a year — the next one needs to come back through you), and the capital source disclosure matters more (bridge deals can change capital sources mid-underwriting if the lender's pool rebalances).