Joe DownsCEO & Co-Founder, Belrose Storage Group. Founder, Storage Moguls.

When Brokers Can Turn Your Deal Into “Damaged Good

15 Feb 2026 · 1 min

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0:44

In this concise YouTube segment, the speaker warns that not all brokers are beneficial; an overly aggressive broker can “shop” a deal to the point where lenders view it as damaged goods. He advises weighing the broker’s cost—typically around a 1% fee—against the value they bring. The recommendation is to engage a broker only for complex or high‑risk transactions, such as heavy value‑add projects, low‑occupancy properties, or unique asset types that need a strong narrative for lenders. For first‑time buyers, a broker’s reputation and credibility can be especially valuable, effectively bolstering the loan application.

Chapters

And not all brokers are good. A bad one can shop your deal so aggressively that lenders start to view it as damaged goods. So you have to weigh the cost against the value they bring to your specific deal, which leads us right to the question at hand. When is that cost worth paying? So considering the 1% fee, you should only hire a broker when the deal is complex enough to justify the cost. Using a broker for a heavy value-add project, properties with low occupancy, Or unique asset types that require strong narrative to sell to a lender, good idea. If you're a first-time buyer, a broker is invaluable because they lend their reputation and credibility to your loan application.