Ira Zlotowitz is leaving Eastern Union to start a company that he hopes will shake up the world of commercial real estate mortgage brokerage.
The commercial brokerage’s founder and CEO is raising $12 million in venture capital for his new firm, Gparency, which he says will allow landlords and developers to work directly with banks without the need for a broker.
Instead of charging clients a fee when a deal closes, Zlotowitz will have a flat fee upfront and hourly fees for certain services. The idea is to bill clients similarly to the way a law firm does.
Gparency already has investment commitments from 80 real estate investors, brokers, attorneys and lenders, according to Zlotowitz. He plans to bring staff from Eastern Union, including the banking team, tech team, data team, and his own team, and to launch an app for clients to track their deals.
Read more at TheRealDeal.
{Matzav.com}
At least this time he is doing in a new company, instead of messing over his existing agents with crazy ideas like this.
Remember the 1/4 point fiasco?
Big deal. This is news? Yawn. Zzzz.
Mamash earth shattering news. BTW, I had a scrambled egg for breakfast today. Who really cares?
No, no, no! Never scramble your eggs. It’s a mitzvah to make a bracha on a sholeim. So, eat the egg whole, then jump up and down vigorously, to scramble it in your stomach.
i was the one that emailed him about this idea about 5 years ago but im happy he is doing it. I’ll get my share straight from Hashem either way.
Ask me if I care?
Never will happen. The ‘no compete clause’ runs to 2035.
“instead of charging clients a fee when a deal closes, Zlotowitz will have a flat fee upfront and hourly fees for certain services. The idea is to bill clients similarly to the way a law firm does”
Maybe that’s what you call … “Gparency”,
but “Transparency” it is certainly not. How can a borrower possibly be sure how many hours the broker really worked ?
As a broker (not working for Eastern Union) I would say that being commission based incentivized quick and expeditious work.
Such a system would encourage the slow walking of nearly every loan.
Add to that, that it is possible for an unscrupulous broker to buy a term sheet on a very quick timeframe to keep a client engaged, but push comes to shove, that term sheet is nearly worthless because it was written for a bribe and not based on the details of the asset in question.
I would expect that after the novelty wears off, people will not have much trust in such a program
I bought a 5 pack of socks yesterday in Primark for $8. That’s a pretty good deal. I’m wearing a pair right now and it’s pretty comfortable. I plan on going later to Bingo to do my Shabbos shopping. Tommorow I’ll go to Chop A Nosh and buy the takeout that I need. Their chopped liver is very good.