[Tom Miller]

NEXA is quickly buying shell companies to establish easy starting points for future partnerships, while avoiding becoming a retail business or selling the company.

What Does It Really Mean To Acquire Shell Companies?

In this case, \“shell companies\” refers to broker shops, or LLCs which have state licenses, some minimal amount of \“history,\” and in some cases, have or are eligible for HUD approvals, but which have very little or no ongoing business. Kortas has said he is:

• NEXA is buying small broker companies—often those operating in two states, and sometimes already connected to NEXA—mainly to obtain key licenses and build a business history.
• Each shell company becomes a starting point for big partnerships with teams, builders, agencies, and other important partners, with each new partnership announced separately.
• Sometimes, NEXA buys a processing company, sells its active parts, and keeps the company’s shell for licensing—because, as Kortas says, getting licenses can take a long time. \
• By using older companies, NEXA can start new projects and get approvals faster than if it applied for new licenses in each state or program.

Why This Is Happening Now (strategy, rebrand, AXEN)

Several actions fit this plan. These bold steps, called NEXA Lending, have been noticed by the industry as NEXA transitions from a broker to a more connected, platform-style lending business.

• Kortas has started AXEN Realty, making it NEXA’s partner company and a new way to earn money and create partnerships.
• AXEN’s recruiting slogan clearly mentions joint venture opportunities for licensed brokerages and teams, and having a Realtor with two licenses as a loan officer at NEXA to create more ways to earn money.
• By combining shell companies, AXEN, and a new leadership team, NEXA is building a group of companies for joint ventures, connected real estate, and possibly future loan servicing or agency work—all while staying focused on being a broker.

Retail vs Broker, UWM, and “true IMB” Rumors

Recent reports and comments summarize the predominant rumors you noted and how Kortas is responding:

• The rumor mill is churning: whispers of buying a shell LLC from a Movement Mortgage affiliate for agency approvals, launching a ‘true IMB,’ shifting to retail, cutting ties with UWM, teaming up with CrossCountry for servicing, or even selling NEXA.
• Kortas’s public position: He states that he is neither going retail nor going into delegated correspondents.
• He maintains that he is not selling NEXA, and that ending the UWM partnership or going full retail would, quote, “destroy what I’m doing with NEXA.”
• He frames the shell acquisitions as purely vehicles for joint ventures with builders, real estate firms, and strategic partners, all aimed at boosting NEXA’s volume.
• To outsiders, NEXA looks like it is moving from its ‘brokers are better’ beginnings to a more connected, mixed business model, which is causing talk about becoming a ‘true IMB,’ even though Kortas says they are not going retail.
• Experts still see UWM as NEXA’s main wholesale partner, and recent news about the shell company plan shows there has been no real split, just ongoing rumors that Kortas keeps denying.

Servicing And Agency Seller‑Servicer Angle

Most of the buzz about ‘mysterious servicing’ ties back to:

• Reports of him attempting to buy, or having acquired, a shell company from a Movement Mortgage partner.
• People think this could let NEXA or its partners keep or share loan servicing, maybe with big companies like CrossCountry Mortgage.
• The shell company plan involves buying companies with at least 2 years of history to make it easier to obtain HUD approvals.
• There are many seller-servicer and co-issue rumors, industry watchers read between the lines.
• The shells, Movement-affiliated LLCs, and NEXA’s scale suggest he is quietly building a framework that could one day support servicing or capture a slice of servicing profits, even as NEXA remains broker-centric for now.

Real Consequences For LOs And Branch Managers

For loan officers and branch managers, this plan could have real effects—some good, others more difficult.

Possible Advantages

• Growing quickly: By buying companies that already have licenses and are ready for HUD, NEXA, and its partners can enter new states and launch new products faster than others.
• This means more places for you and your team to work and do business.
• Getting more deals: Partnerships with builders and real estate companies help loan officers get more leads, with referrals shared between AXEN, NEXA, and their networks.
• Dual-licensed agents working with AXEN and NEXA are set up to earn money by sharing profits from these partnerships.
• This gives loan originators and branch managers more ways to earn money, like commissions, profit sharing, team bonuses, and income from real estate or title deals.
• Having top executives helps the company grow, manage money, and run smoothly.
• This means more support, marketing, technology, and rule-following than smaller broker-only companies.

Possible Disadvantages

• Changing focus and identity: Even if the company says it is not going retail, moving toward a more connected business with its own partnerships, real estate, and possible loan servicing will change its culture, financial matters, and priorities.
• NEXA’s own partnership channels—builders, agencies, AXEN—could get more resources and attention than independent branches.
• The growing network of shell companies, partnerships, and related companies, along with changing servicing and sales plans, makes it harder for loan officers or branch owners to keep track of who owns what, who profits, and who controls rules or pay.
• Most of the non-retail lead management will probably work well in practice.
• Still, since most of the reassurance comes from Kortas, there is a risk if the plan changes under pressure or if agency or servicing changes affect the money situation.
• The mix of company shells and connections—NEXA, AXEN, insurance, solar—could also cause legal or reputational problems if not managed carefully, affecting branches and loan officers connected to those companies.

Assessing This For You And Your Friends

If you are an independent broker working with multiple wholesalers, here are the key due diligence questions to ask when considering NEXA or AXEN under this evolving model:

Clarity Of Entity And Channel

• Under which specific legal entity will the branch and LOs be sponsored (NEXA Lending, a JV shell, AXEN-related entity)?
• What are the implications, if any, concerning the sale, merger, or repurposing of JVs or shells?

Structure Of Compensation And Margins

• What are the differences in compensation/commission for LOs/branches in a pure broker branch, and those in a JV shell, or those linked to AXEN/realty?
• Where is the margin captured (company vs. JV vs. realty), and how clear is this to you?

Mix Of Lenders And Wholesale Relationships

• Please confirm in writing whether your access to wholesale lenders (including UWM and others) will be the same, and clarify what happens in the event of a substantial change in NEXA’s relationship with any key wholesaler.

Plans For Servicing And Agencies

• Directly inquire if there is anything currently active relating to co-issue servicing, agency seller-servicer status, or correspondent lines, and how these may affect your role, if at all, as a broker-channel LO.

Portability And Exit

• When building a team or brand with one of the shells or JVs, what options do you have for exiting and re-structuring that arrangement elsewhere, or going back to being a fully independent brokerage with your team and referral partners?

If you want, explain how your friends are planning to do their moves (single LO under NEXA, full branch, JV with an RE team, etc.), and I can prepare a risk/benefit matrix customized to those structures for each scenario.

[Tom Miller]

GCA Forums News Summary- 10th February 2026Stock Markets and Economic Data

U.S. stock markets traded mixed as new economic reports were released. The Dow Jones went up slightly by 0.1% to a new high, its third in a row. The S&P 500 rose 0.5%, helped by gains in tech, communication, and materials companies. In the afternoon, Dow and S&P 500 futures rose slightly, and the US500 index also rose slightly. Weak retail sales caused government bond yields to fall, and the CBOE Volatility Index dropped, showing investors were less worried.

Precious Metals: Price Declines Show Continued Volatility, with Speculation, Taking Profit, and Chinese Trader Positioning Affecting Flow

Metals dropped sharply, with silver falling to $80.75 per ounce, down 3.13% for the day. Even though silver has dropped 5.17% since October, it is still well above last year’s level. Experts say people selling to take profits, risky bets by Chinese traders, and borrowing to buy are the main reasons. Gold also fell, dropping 4% to $4,662.43 per ounce. The price gap between gold and silver went back above 50 to 1 after briefly going below that in January. CFTC data shows more traders are betting against silver, making prices more unstable. If fewer people keep trading, experts say silver could fall to $68.

Runaway Silver Price Speculative bubbles can make commodity prices swing wildly. Silver shot up to $121.64 on January 29, 2023, but then dropped to $81.00 by March 20, a big 33% fall.

The crash happened because investors had to sell when the CME raised the margin requirements to trade, the US dollar strengthened, and many people sold to take profits. In total, silver fell almost 50%, causing problems in the options market. CFTC data shows traders are divided between betting that prices will go up or down. In Shanghai, people paid $6 to $9 more for real silver, while there was a big difference between paper and real silver prices in other places.

Silver Manipulation

Rumors that JPMorgan and other big companies are manipulating silver prices continue. The company has said the futures market is too high and suggested a new tariff on silver imports.

JPMorgan’s $1.27 billion settlement for market cheating from 2008 to 2016, which led to two traders going to jail, is still remembered. Some say aggressive selling is meant to lower prices, while others think it is a way to protect against losses.

Recent actions by the CME and higher real silver prices in China have added to the debate. People familiar with the matter say JPMorgan’s plans depend on how much the industry needs silver and on political risks.

Interest Rates: Fed Keeps Rates Unchanged

The Federal Reserve kept its main interest rate between 3.5% and 3.75% after its January meeting, even though two members wanted a small cut. Chair Jerome Powell said the economy is growing well, but job growth is slow and inflation remains a concern. The rate is now 3.75%, with plans to lower it to 3.25% by 2027. Because the job market is still weak and inflation is averaging 2.5%, most people do not expect rates to change soon.

Mortgage Rates: Small Increase

Mortgage rates rose slightly, with the average 30-year fixed loan now at 6.28% and the 15-year fixed at 5.37%. Refinance rates are 6.50% for 30-year loans and 5.50% for 15-year loans. Since the Federal Reserve is not making changes this month, rates will probably stay the same, giving homebuyers a rare chance before things change again.

Housing Forecast Outlook: Prices Expected to Remain Stagnant with Increasing Costs

J.P. Morgan predicts U.S. housing prices will stay about the same, with little growth expected until 2026. Low demand and more homes for sale are keeping the market steady. Existing home sales are expected to go up 3% to 4.2 million, while the average price may rise just 1%, with wages growing faster than home prices. Investment in business properties is expected to rise 16% to $562 billion. Demand for apartment buildings is strong nationwide, except in the Sun Belt, where there are still too many vacant units.

Economic Numbers: Unemployment and Inflation Remain Consistent.

The U.S. unemployment rate stayed at 4.4% in December, with about 70,000 new jobs expected in January. Inflation in January was 2.7% compared to last year, and the main inflation measure is starting to slow.

Looking ahead to 2026, the economy is expected to grow by 2.0% and inflation to be around 2.5%. Meanwhile, household debt grew to $18.8 trillion by the end of 2025.5.

Housing and Mortgage News: Affordability Challenges Continue. Rising housing costs and the lack of homes for sale remain big news and a topic in Congress. More people are falling behind on their mortgages in areas with high unemployment. Still, with interest rates at their lowest in 15 months, there is some hope for buyers, even though the total number of late payments is still low.

Investigation and Comments by Jerome Powell, Chair of the Fed

Federal Reserve Chair Jerome Powell is under investigation by the Department of Justice over what he said about renovations to the Fed building. Powell said the investigation threatens the central bank’s ability to set interest rates on its own. He recently said that rising gold and silver prices have little effect on the overall economy, while a group studying inflation said it should remain steady.

Declining Consumer Sentiment

The economy is steady, but a rise in fraud cases and Jeffrey Epstein’s return to the news have made people uneasy. In January, the U.S. economy grew by 2.0%, but half of Americans aged 18 to 60 worry the economy will get worse, and prices will go up.

Surveys show 62% expect things to get worse, though more than half think fraud will go down. Fraud schemes cost one state $3.5 million, with welfare fraud costing even more across the country.

California’s recovery is still uneven, with unemployment above 5.6%. Ideas for a billionaire tax are being discussed, while budget fights continue across the country. In Chicago, a mayoral scandal and a standoff that led the governor to remove State Police from Illinois have added to the unrest.

Mortgage Industry News: Rising Mortgage Credit Availability

It became easier to get a mortgage in January because many new, large, and specialized loan options became available. By Spring 2026, more people are missing payments in areas with high unemployment, but fewer are in more stable places.

Latest News about Gustan Cho Associates, Subsidiaries, and NEXA Mortgage

NEXA Mortgages acquired Gustan Cho Associates and rebranded it, aiming to become a top source for real estate and mortgage news. By the end of 2025, NEXA split and came back as NEXA Lending, focusing more on lending to other businesses. Businessman Brad Lea has joined the company to highlight its loan officers.

Expanding Partnerships of AXEN REALTY

AXEN REALTY has grown quickly and now has 700 agents. Its 100% commission plan helped it hire over 500 agents in just its first 90 days. The company has built a national online community for real estate and mortgage services.

The platform connects professionals and answers questions about buying homes and investing. There is optimism for 2026 in the housing and mortgage markets.

The outlook for 2026 is positive. With rates close to 6% and sales up 14%, more chances are appearing, helped by higher wages. Experts see more opportunities as the number of homes for sale grows and prices remain steady, though some problems, such as a shortage of homes, persist. Overall, the industry is slowly recovering.

https://www.youtube.com/watch?v=3drD5g6nL_8

[Tom Miller]

Good morning Marcos,

Great news. Looking forward in adding another talented professional to our close knit group. Extremely excited and I am confident you have chosen the perfect home to start your prosperous mortgage career. Little different here. There is no bosses. You learn from us and me and our associates learn from you. You have the keys 🔑 to the path of your career. You can choose being a branch sponsored loan officer, team leader, sales, manager, branch manager, area or regional manager, independent loan officer, run your own independent P and L brick and mortar branch operations, and operate under your brand under your own DBA. Our business model is not for everyone but after our long conversation with you I am more than confident you will AND ARE a brilliant talented professional who is no doubt an asset for our team. Anytime you want to onboard is fine and there is no expiration date. Don’t hesitate to ask any questions you have. Always available for you. My wife Lisa Marie and I run a husband and wife team at Gustan Cho Associates and we are fortunate we run a Nationwide business platform. Please don’t hesitate to contact me or anyone in my team.

Tom Chino Miller

Preferred Mortgage Rates

• This reply was modified 1 month, 2 weeks ago by  Sapna Sharma.

[Tom Miller]

Lending Network, LLC http://www.lendingnetwork.org is a wholly-owned subsidiary of Gustan Cho Associates and is the business and commercial lending division of Gustan Cho Associates. I created a detailed post for GCA Forums, optimized with these main goals in mind:

Engagement:

• The post uses a press release style, which helps make announcements feel exciting and interesting from the start.
• I added several questions to encourage people to join the conversation.
• I invited the community to share feedback and ask questions.
• I also encouraged others to consider partnering with us.

SEO:

• I made sure to use target key phrases throughout the post.
• The post is long-form (2532 words), which can help it rank higher in search results.
• I included different versions of the main keywords to improve SEO.
• There is an option to link to gustancho.com within the post.
• I added several hashtags to help with sharing on social media platforms.

Educational:

• Each product is described in detail.
• I included comparison tables to make the information easier to review quickly.
• I have explained the steps I took as clearly as possible. I included both the advantages and the benefits.

Calls to Action:

• I provided several ways for people to get in touch.
• There is information about special promotions launched just for this post.
• I encouraged members and others to reply and join in.
• I included a way for people to make referrals.

Professionalism:

• I have included the NMLS license number for transparency, etc.
• I explained how the integration strategy works.
• All required compliance disclaimers are included.

You can share this on http://www.gcaforums.com to:

1. Announce the launch of the commercial division and its release.
2. Start generating leads from the current community.
3. Build thought leadership.
4. Drive traffic to https://www.gustancho.com.
5. Build referral partnerships.

gcaforums.com

Great Content Authority FORUMS and Sub-Forums Activities

Great Content Authority FORUMS activities in an online community to share ideas, ask questions, and connect with like-minded individuals.

[Tom Miller]

I will start searching for recent information about wholesale commercial lenders that partner with mortgage brokers, especially with your NEXA Mortgage setup. I will begin searching for brokers that specialize in wholesale commercial and business loan funding: I will begin searching for brokers that specialize in wholesale commercial funding and commercial broker networks: I will begin searching for commercial lenders that facilitate funding for brokers. From the information I obtain, I will formulate a complete list of wholesale commercial lenders and broker-accessible lenders for your perusal. I will say, given that you are exclusively operating a commercial lending division within NEXA Mortgage, you should realize that **commercial and business lending is fundamentally different** from residential wholesale lending, which is the majority of lenders I located initially.

## **BROKER-FRIENDLY COMMERCIAL LENDERS: COMPLETE LIST**

### **Specific Lenders: Hotel/Motel Brokering**

1. **Select Commercial Funding**

– Financing for motel/hotel businesses

– Loans begin at: $1.5M

– 90% LTV possible

– Seasonal properties are accepted.

– Rate/term refinance and cash-out available.

– Collaborates with brokers.

2. **Commercial Real Estate Loans (Janover)**

– Hotel funding starts at 1M

– LTV at 75%

– 30-year amortization

– Broker friendly

3. **CREFCOA (Commercial Real Estate Finance Company of America)**

– Online commercial lending (CRELP)

– Flagged and unflagged hotels

– All 50 states

– Broker access

4. **Largo Capital (Hospitality Finance Group)**

– Funding with life insurance and CMBS

– Financing more than $1B for hotels

– Network of correspondent lenders

– Broker friendly

5. **Clopton Capital**

– Commercial mortgage brokerage at a national level (service as correspondent too)

– Financing for hotels

– CMBS, SBA, bridge, mezzanine

– Partners with other brokers

6. **Commercial Loan Direct**

– Mortgages for hotels and hospitality sectors

– Access to multiple lenders

– Conventional, CMBS, and SBA programs

7. **First Capital Trust Deeds (FCTD)**

– Bridges/hard money loans for hotels

– Terms of 12 to 36 months

– Lending across the country, based in California

– Private funding

– Broker focused

### **CMBS Lenders (Usually Broker-Friendly)**

8 ** Big CMBS Lenders/Platform: **

**Goldman Sachs**

**JP Morgan**

**Deutsche Bank**

**Morgan Stanley**

**Wells Fargo (CMBS division)**

**Argentic**

**Square Mile Capital**

**Ready Capital**

**Greystone**

**Note**: Most CMBS lenders work through correspondence or brokers.

### \*\*Life Insurance Companies\*\* (Some Work Through Brokers/Correspondents)

9. \*\*Major Life Companies:\*\*

**MetLife**

**Prudential**

**Principal**

**Mass Mutual**

**New York Life**

**John Hancock**

*Many require correspondent relationships.*

### \*\*Commercial Banks With Broker Programs\*\*

10. **Stearns Bank**

– **National reach**

– **Referral partner program**

– **SBA Preferred Lender**

– **Commercial real estate**

– **Works with brokers, CPAs, professionals**

11. **KeyBank Commercial Mortgage**

– **National platform**

– **Works with correspondents**

12. **Regions Bank**

– **Commercial lending division**

– **Broker referrals accepted**

### \*\*Alternative/Private Lenders (Very Broker-Friendly)\*\*

13. **eCapital**

– **Asset-based lending**

– **Working Capital**

– **Commercial Finance**

– **Dedicated Broker Partnership Program**

– **AR Finan\cing, factoring, supply chain**

14. **GoKapital**

– **Business loans, merchant cash advances**

– **Commercial mortgages, hard money**

– **SBA loans**

– **ISO/Broker program with up to 6% commission**

– **Multiple loan products**

15. **Vaster (Florida-Focused)**

– **Bridge loans, private money**

– **Up to 65% LTV**

– **No broker package required**

– **10-day closings**

16. **AVANA Capital**

– Community development focus

– Broker partnership program

– SBA 504 specialist

### **SBA Lenders (Broker-Friendly)**

17. **Live Oak Bank**

– Broker referrals

– Hospitality/hotel sector

– SBA 7(a) and 504

18. **CDC Small Business Finance**

– SBA 504 specialist

– Collaborates with brokers

19. **Other SBA Preferred Lenders**

– Too many to count and most take broker referrals

### **Debt Funds & Alternative Capital**

20. **Private Debt Funds**

– Brookfield

– Blackstone

– KKR Real Estate

– Starwood Capital

*Almost always work through brokers or placement agents*

### **Commercial Loan Broker Platforms & Networks**

21. **Commercial Loan Broker Association (CLBA)**

– Annual conference

– Lender networking

– Access to over 75 lenders

– **This is an important resource for you**

22. **CommLoan**

– Commercial mortgage marketplace

– Platform that connects brokers to over 650 lenders

23. **LoanStream Commercial**

– Commercial loan offerings

– Works with mortgage brokers

– TPO (Third Party Originator) focused

—

## **IMPORTANT NOTE FOR YOUR COMMERCIAL DIVISION**

### **Navigating the Commercial Landscape**

1. **Commercial =/= Residential Wholesale**

– Rather than true wholesale commercial lenders (UWM, Newfi, LoanStream residential, etc.) wholesale residential lenders do not do commercial loans

– Commercial lending is a different beast, much of the business is done through:

– Direct lender relationships

– Correspondent arrangements

– Brokers/referrals

– Split commissions (excluding yield spread)

2. **Models of compensation**

– **Origination fees** are generally 1-3% of loan amount (either builder or paid by borrower)

– **Referral fees** range from 0.5 to 1% from lender

– **Some lenders** operate on a 25-50% commission split

– **Working capital/MCA** can go up to 3-6% or more commissions

3. **Considerations on licensing**

– Residential is covered by your NMLS

– In the majority of the states, Commercial loans are NMLS license exempt

– Still, some states require a commercial broker license

– Especially check requirements for Texas

4. **Getting Started**

**Option A: Enroll in CLBA (Commercial Loan Broker Association)**

– pay the annual fee

– Gain lender access

– Training and conferences

– This will grant you credibility and valuable lender contacts

**Option B: Cultivate Direct Relationships**

– Reach out to lenders on the list above

– Many operate formal broker programs

**Option C: Enroll in a Commercial Loan Broker Training Program**

– Commercial Loan Broker Institute

– Alternative Funding Partners

– Training includes lender introductions

### **Specific Action Plan for Your Hotel/Motel Deal**:

**Next Steps:**

1. **Contact These Lenders** (Best for Your Deal):

– **Select Commercial Funding** – broker friendly, and hotel/motel friendly

– **Largo Capital** – specialists in hospitality- **CREFCOA** – Simple broker access through an online portal.

– **Commercial Loan Direct** – Focused on brokers.

2. **Building Your Broker Package:**

– Construct a submission in a professional manner (refer to the checklist I shared).

– Broker contact details and commission structure should be included.

– The commercial space values the professionalism of the package.

3. **If the Size of the Deal Is Appropriate, Think About:**

– **CMBS if the loan >$3M** – Reach out to Greystone, Argentic, Ready Capital.

– **SBA if owner-occupied** – Live Oak Bank, local SBA loan providers.

– **Private/Bridge if urgent** – FCTD, Vaster (if in FL).

4. **Enroll in CLBA Right Away:**

– Instant access to 75+ lenders.

– Connect with seasoned commercial brokers.

– Learn.

– Enhanced standing.

### **Resources Specific to Texas:**

– **Strong Regional Banks in Texas** that finance hotels:

– Frost Bank (Commercial Division)

– Texas Capital Bank

– Comerica Bank Texas

– Independent Bank

– Most of them give broker referrals, especially after a few deals.

### **Goals for NEXA Commercial Division in the Long Run:**

1. **Expand Your Lender Network:**

– Avoid depending on a couple of lenders.

– Establish ties within all segments.

– Different lenders should be used for various deal types.

2. **Initial Specialization:**

– You spoke of the expertise in the multifamily.

– How about you concentrate on just multifamily and hospitality?

– Position yourself as the preferred broker for these types of properties.

3. **Construct Your Framework:**

– CRM specific to commercial deals (as opposed to residential)

– Dealership documentation templates

– Tools for understating analysis

– Promotional materials

4. **Engage Your Network:**

– CLBA membership

– Commerical real estate networking

– Relationships with commercial real estate brokers for referring

– Don’t forget the CPAs and lawyers

### **Key Differences:**

**Residential Wholesale (What NEXA primarily does):**

– UWM, Newfi, LoanStream, etc.

– Staples with the rate sheets, LPAs, and AU

– TAT, productivity, ADD

– YSP pricing

**Commercial Wholesale/Broker (What you’re building):**

– You have to do this component of the business- it is relation based

– Deals get custom quotes

– It takes longer

– Compensation is origination fee based

– Deals are custom

– Average turn times are 45-75 days

—

Would you like me to:

1. Would you like me to find more specific lender contacts for any of these?

2. Help me develop a strategy for the broker

3. Find Texas commercial lenders instead?

4. Help me with templates on how to submit commercial loans?

It is important to know that **commercial lending is a relationship business**, and you’ll have to understand how to connect with individual lenders. Joining CLBA will provide you with the quickest way to connect with multiple lenders.

[Tom Miller]

I appreciate your detailed background – your multifamily experience will definitely translate to hotel/motel financing, though there are some important distinctions. Let me walk you through a comprehensive process for this hotel/motel commercial loan.

Key Differences: Hotels/Motels vs. Multifamily

Before diving into the process, understand that hotel/motel financing is generally considered higher risk than multifamily because:

• Revenue depends on transient occupancy (daily/weekly) vs. lease agreements
• More operational complexity and management-intensive
• Higher sensitivity to economic cycles and local market conditions
• Lenders often require hospitality industry experience from borrowers

Step-by-Step Documentation & Process

Phase 1: Initial Information Gathering

Start with a detailed borrower/property intake to qualify the deal:

1. Property Details

   • Property address and legal description
   • Number of rooms/suites
   • Property type (limited service, full service, extended stay, budget, etc.)
   • Brand affiliation (franchise like Holiday Inn, Best Western) or independent
   • Age of property and condition
   • Recent renovations or capital improvements
   • Property management (owner-operated vs. third-party)

2. Current Financing Information

   • Existing loan balance
   • Current interest rate and terms
   • Maturity date
   • Prepayment penalties (critical for refinance timing)
   • Current lender name

3. Loan Request Specifics

   • Desired loan amount
   • Rate and term goals
   • Recourse vs. non-recourse preference
   • Desired amortization period
   • Cash-out needs (if any, though you mentioned rate/term)

Phase 2: Core Documentation Package

You’re on the right track with your multifamily docs. Here’s what you’ll need for hotel/motel:

Financial Documents:

1. Property Operating Statements (last 3 years)

   • Trailing 12-month P&L (most recent)
   • Year-to-date P&L
   • Previous 2-3 years annual statements
   • Key metrics lenders scrutinize:
     • Revenue Per Available Room (RevPAR)
     • Average Daily Rate (ADR)
     • Occupancy percentage
     • GOP (Gross Operating Profit)
     • NOI (Net Operating Income)

2. Smith Travel Research (STR) Report

   • This is critical for hotel financing (not needed in multifamily)
   • Shows competitive set performance
   • Market penetration index
   • Demonstrates how property performs vs. comparable hotels
   • Most lenders will require this or order it themselves

3. Rent Roll (if applicable)

   • For extended-stay properties with monthly tenants
   • Less relevant for traditional transient hotels

4. Tax Returns (Property and Personal)

   • Last 3 years property tax returns
   • Borrower’s personal tax returns (last 2-3 years)
   • Business entity returns if held in LLC/Corp

5. Current Profit & Loss Statement

   • Month-to-date and YTD
   • Should match operating format (use USALI – Uniform System of Accounts for the Lodging Industry if possible)

Borrower Financial Strength:

6. Personal Financial Statement (PFS)

   • Complete balance sheet
   • Liquid assets highlighted
   • Net worth calculation

7. Schedule of Real Estate Owned (SREO)

   • All properties owned by borrower
   • Current values, loans, NOI for each
   • Overall portfolio performance

8. Bank Statements

   • Personal: last 3-6 months
   • Business: last 3-6 months
   • Demonstrates liquidity and reserves

Property Documentation:

9. Property Information Package

   • Property photos (exterior, interior, rooms, amenities)
   • Site plan/survey
   • Floor plans
   • List of furniture, fixtures & equipment (FF&E)
   • FF&E reserve account information

10. Franchise Agreement (if applicable)

    • Copy of franchise agreement
    • Franchise fees and royalty structure
    • Performance requirements
    • Term remaining on franchise

11. Environmental Reports

    • Phase I Environmental (may need to be updated)
    • Any Phase II if issues were identified

12. Property Condition Report/Engineering Report

    • Recent inspection report
    • Capital needs assessment
    • Deferred maintenance items

13. Appraisal (most recent)

    • Many lenders will order new appraisal
    • Having recent one helps with initial underwriting

14. Insurance Documentation

    • Current property insurance declarations
    • Liability coverage
    • Business interruption insurance

Supporting Documentation:

15. Market Analysis

    • Competitive property analysis
    • Local market occupancy trends
    • Tourism/business travel statistics for area
    • Economic development in region

16. Narrative/Executive Summary

    • History of property ownership
    • Improvements made
    • Operational strategies
    • Market position
    • Why refinance makes sense now
    • Borrower’s hospitality experience

17. Management Company Information (if third-party managed)

    • Management agreement
    • Company background
    • Track record with similar properties

Phase 3: Underwriting Preparation

Calculate Key Metrics for Lenders:

1. Debt Service Coverage Ratio (DSCR)

   • Hotel lenders typically want 1.35-1.50+ DSCR
   • Formula: NOI ÷ Annual Debt Service
   • This is typically higher than multifamily (1.20-1.25)

2. Loan-to-Value (LTV)

   • Hotels typically max at 60-70% LTV (vs. 75-80% multifamily)
   • Lower LTV reflects higher risk profile

3. Debt Yield

   • NOI ÷ Loan Amount
   • Lenders typically want 10-12%+ debt yield for hotels

4. Operating Metrics:

   • Occupancy % (60%+ is generally healthy, but market-dependent)
   • ADR trends (increasing is positive)
   • RevPAR growth
   • Compare to STR competitive set

Red Flags to Address Proactively:

• Declining occupancy or ADR trends
• Deferred maintenance
• Franchise issues or loss of franchise
• High debt yield requirements
• Limited hospitality experience
• Market oversupply

Phase 4: Lender Selection & Shopping

Types of Lenders for Hotel/Motel Financing:

1. Regional/Community Banks

   • Often best for smaller hotels ($2M-$10M loans)
   • Relationship-driven
   • May offer recourse loans with better terms
   • Some work with brokers, many prefer direct

2. SBA 504/7(a) Loans

   • Can be excellent for owner-occupied hotels
   • Lower down payment requirements
   • Longer amortization
   • Many brokers work with SBA preferred lenders

3. CMBS Lenders (Conduit)

   • Larger loans ($3M-$5M minimum typically)
   • Non-recourse
   • Stricter underwriting
   • Broker-friendly
   • More commoditized pricing

4. Life Insurance Companies

   • Larger, stabilized properties
   • Best rates for premium properties
   • High barriers to entry
   • Some work through correspondents/brokers

5. Debt Funds/Private Lenders

   • More flexible underwriting
   • Higher rates
   • Shorter terms
   • Bridge/transitional situations
   • Very broker-friendly

6. Fannie Mae/Freddie Mac

   • Generally don’t finance traditional hotels
   • May consider extended-stay with long-term leases
   • Check eligibility carefully

Broker-Friendly Lenders (as of my knowledge):

Note: I should search for current lender information since relationships and programs change frequently. Would you like me to search for currently active broker-friendly commercial hotel lenders?

General categories to explore:

• CMBS platforms: Argentic, Square Mile Capital, Ready Capital, Greystone
• Commercial mortgage brokers can access: KeyBank, Berkadia, Walker & Dunlop, CBRE Capital Markets
• Correspondent networks: Check if your company has existing relationships
• Regional banks in Texas: Smaller Texas banks may be competitive for in-state properties

Phase 5: Submission & Underwriting Process

Initial Submission:

1. Create comprehensive loan summary/submission package:

   • Executive summary (1-2 pages)
   • Borrower background & experience
   • Property overview & history
   • Market analysis summary
   • Financial highlights (3-year trend)
   • Loan request specifics
   • Key metrics (DSCR, LTV, Debt Yield)

2. Submit to 3-5 lenders initially

   • Mix of lender types based on deal profile
   • Include all core documentation
   • Set expectations on timeline (45-60 days typical)

Term Sheet Stage:

3. Review proposals for:

   • Interest rate (fixed vs. floating)
   • Amortization period
   • Loan term
   • Prepayment penalties (critical for refinance)
   • Recourse vs. non-recourse
   • Closing costs and fees
   • Reserve requirements (FF&E, real estate taxes, insurance)
   • Financial covenants
   • Guarantor requirements

4. Negotiate best terms

   • Don’t just focus on rate – prepayment flexibility matters
   • Understand total cost (fees, reserves, etc.)

Due Diligence Phase:

5. Lender will order:

   • New appraisal (borrower typically pays)
   • Updated Phase I Environmental
   • Property Condition Assessment (PCA)
   • Title work
   • Insurance review

6. Additional requests:

   • Respond promptly to lender questions
   • Provide updated financials if requested
   • Address any concerns from third-party reports

Phase 6: Closing

• Attorney review of loan documents
• Final conditions cleared
• Funding/recording
• Typical timeline: 45-75 days from application to closing

Critical Success Factors for Winning the Deal

1. Move Quickly on Information

   • Get complete documentation package assembled ASAP
   • Incomplete submissions delay everything

2. Present a Professional Package

   • Use your executive summary template
   • Clear, organized financial presentation
   • Highlight strengths, address weaknesses proactively

3. Leverage Your Experience

   • Your commercial real estate background is valuable
   • Emphasize property management expertise
   • Show understanding of cash flow analysis

4. Understand the Hotel-Specific Metrics

   • Learn to speak the language (RevPAR, ADR, STR reports)
   • Lenders will test your knowledge

5. Set Realistic Expectations with Borrower

   • Hotels typically get less leverage than multifamily
   • Rates may be 50-100 bps higher than multifamily
   • More reserves required

6. Borrower’s Hospitality Experience Matters

   • If limited, address how property is managed
   • Third-party professional management helps

Additional Considerations

Texas-Specific:

• No state income tax (positive for investors)
• Strong tourism markets (Austin, San Antonio, Houston, DFW)
• Check if property is in opportunity zone or special district
• Texas homestead laws don’t apply to commercial, but know local market

Rate Shopping Strategy:

• Cast wide net initially
• Focus negotiation with top 2-3 respondents
• Use competing offers as leverage
• Watch for “best efforts” vs. “committed” terms

Your Role as Broker:

• You’re the quarterback – manage the process
• Communicate frequently with borrower
• Prepare them for lender questions
• Help interpret term sheets
• Guide toward best overall deal, not just lowest rate

Questions to Ask Your Borrower

Before you start shopping:

1. What’s driving the refinance now? (Rate savings, cash out, loan maturity?)
2. How long do they plan to hold the property?
3. What’s their prepayment flexibility needs?
4. Recourse tolerance?
5. Are there any pending franchise issues?
6. Any deferred maintenance or upcoming capital needs?
7. Management changes planned?
8. How is current year trending vs. last year?

Would you like me to search for specific current broker-friendly hotel lenders, create a sample executive summary template, or dive deeper into any particular aspect of this process?

https://www.lendingnetwork.org

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COMMERCIAL LOANS, COMMERCIAL REAL ESTATE

[Tom Miller]

NEXA Lending is forming partnerships and working with shell companies, builders, and realtors to comply with rules on kickbacks and referral fees. These creative deals open up new ways to make money while keeping the focus on brokers. Still, these changes can make things less certain for loan officers and branch managers.

Utilization of Shell Companies and Joint Ventures

NEXA speeds up obtaining state mortgage licenses and approvals by buying inactive shell companies. Instead of paying kickbacks, NEXA and builders form joint ventures to share ownership of licensed mortgage brokerages, such as “ABC Builders-NEXA JV LLC.” Builders send customer leads to the new company, NEXA loan officers work on the loans, and profits are usually split evenly. This setup complies with RESPA rules because both parties really own a part of the business.

Illustrative Scenario: Builder and NEXA Joint Venture

When “Peak Homes,” a Chicago builder dealing with a slow market, teams up with NEXA, they buy a shell company that is already licensed in Illinois and Indiana. They rename it “Peak-NEXA Mortgage Partners LLC,” pool their money, open a shared bank account, and have NEXA loan officers work for the new company. Peak Homes provides homebuyer leads to the company, and loans are handled through NEXA’s partner, United Wholesale Mortgage. Peak gets a share of the profits, like 20% after costs, while NEXA gets more loans and fees. For loan officers, this means more steady business from builder referrals, better team bonuses, and a way to work in new states without getting extra licenses. The downside is stricter pricing and more rules to follow from NEXA and the joint venture.

Illustrative Example: Realtors and AXEN Realty Merger

To attract realtors, NEXA started AXEN Realty. When a team from “Gold Coast Realty” joined, they got a share of ownership or extra pay in a new joint venture, “Gold Coast-NEXA Realty Mortgage LLC.” Realtors and AXEN agents send buyers to the joint venture’s loan officers, who are often realtors now working on loans, and NEXA finishes the loans. Profits are shared, and realtor teams can earn up to 30% of the mortgage money from their listings. Because everything is handled by a single, clear company, this avoids kickbacks. Branch managers can run these joint venture offices, making it easier to market together with realtors and offer other services like title or insurance. Still, this setup can cause problems if independent brokers feel left out by these close-knit teams.

With a shell company in hand, brokers like NEXA can step into loan servicing without the hurdles of becoming an Independent Mortgage Bank or Servicer. NEXA takes over a federally approved shell company that is at least two years old and eligible for servicing. They then apply for Fannie Mae or Freddie Mac approval, leveraging the shell’s track record. Once greenlit, the company can hold onto servicing rights for select loans and collect steady income, such as 25 basis points annually.

Illustrative Example: Servicing Strategy with Hypothetical Partners

If NEXA’s shell company, “ServCo LLC,” gets agency approval, NEXA can work with a big mortgage company like “CrossCountry Mortgage” to create “NEXA-CrossCountry Servicing Partners.” NEXA sends loans to the joint venture, and the venture manages or shares the rights to service the loans. CrossCountry handles daily work, and NEXA pays both servicing fees and the origination fees for the loans. This setup lets loan officers retain the right to service their loans, helps keep income steady during slow times, and places the servicing risk on CrossCountry. The downside: UWM might stop giving NEXA funding if it sees them as a competitor in servicing.

Implications for Loan Officers and Branch Managers

For employees, new ways to make money in different states and more business from joint ventures are clear benefits. Independent brokers can grow without paying for more licenses, but there are downsides: the broker role may become less important, the company may rely more on big platforms, joint ventures may take over from independent brokers, and it can be harder to track pay. In Chicago, strict local rules mean everyone must follow them. In the end, this approach helps those who want to grow, but branches that want to stay independent may find it riskier if joint ventures become more common.

[Tom Miller]

I will find the most recent info on wholesale commercial lenders working with mortgage brokers, especially those compatible with your model at NEXA Mortgage. Let me look for wholesale commercial and business loan brokers. Now, I will check for specific wholesale lenders and commercial broker networks. I will look for niche wholesale commercial lenders for brokers. I will be able to create an actionable list of wholesale commercial lenders, including broker-friendly lenders. However, since you are focused on operating a commercial lending division within NEXA Mortgage, you must be aware that **commercial/business lending is fundamentally different** from residential wholesale lending, which most of the lenders from my first round of research fall under.

LIST OF BROKER-FRIENDLY LENDERS IN COMMERCIAL FINANCING IN DETAIL

Brokers with Hotel/Motel Financing Specialization

Select Commercial Funding

– Specializes in hotel/motel financing

– Minimum loan of $1.5M

– LTVs of up to 90%

– Financing available for seasonal properties

– Both refinance & cash-out available

– Broker collaboration

Commercial Real Estate Loans (Janover)

– Financing for hotel loans commencing from 1M dollars

– Maximum of $1M in LTV

– 30-year amortization

– Broker-friendly service

CREFCOA (Commercial Real Estate Finance Company of America)

– Financing on flagged and non-flagged hotels

– Financing available in all 50 states

– Commercial real-estate lending platform with brokers

Largo Capital (Hospitality Finance Group)

– Relationships within CMBS and life insurance

– Over $1B in financing hotels

– Partnerships with correspondent lenders

– Broker collaboration

5. **Clopton Capital**

– Acts as a correspondent; a national broker for commercial mortgages

– Financing for hotels is a specialization

– CMBS, SBA, bridge, mezzanine

– Partnerships with other brokers

Commercial Loan Direct

– Mortgages in hotels and hospitality

– Access to multiple lenders

– Standard, CMBS, SBA, and other programs available

First Capital Trust Deeds (FCTD)

– Finances hotels with hard money/bridge loans

– Loan terms of 12-36 months

– Based in California, lends nationwide

– Uses private capital

– Models business with a focus on brokers

CMBS Lenders (Usually Broker-Friendly)

Major CMBS Lenders/Platforms

Here is a consolidated list of businesses specializing in capital and commercial real estate, along with some additional information regarding their operations.

Goldman Sachs

JP Morgan

Deutsche Bank

Morgan Stanley

Wells Fargo (CMBS division)

Argentic

Square Mile Capital

Ready Capital

Greystone (Plus some CMBS Lenders)

Life Insurance Companies (Brokers/Correspondents)

Major Life Companies

– MetLife

– Prudential

– Principal

– Mass Mutual

– New York Life

– John Hancock

Commercial Banks With Broker Programs

Stearns Bank

– National reach

– Referral partner program

– SBA Preferred Lender

– Commercial real estate

– Works with brokers, CPAs, and other professionals

KeyBank Commercial Mortgage

– National platform

– Works with correspondents

Regions Bank

– Commercial lending division

– Broker referrals accepted

Alternative/Private Lenders (Very Broker Friendly)

eCapital

– Asset-based lending

– Working capital

– Commercial finance

– Dedicated broker partnership program

– Accounts Receivable financing, factoring, and supply chain

GoKapital

– Business loans and merchant cash advances

– Commercial mortgages and hard money

– SBA loans

– ISO/Broker program with up to 6% commission

– A variety of loan products

Vaster (Florida-focused)

– Bridge loans and private money

– 65% LTV

– No broker packet requirement

– 10-day closing

AVANA Capital

– Community development interest

– Broker partnership program

– SBA 504 specialist

SBA Lenders (Broker-Friendly)

Live Oak Bank

– Broker referrals

– Hotel/hospitality experience

– SBA 7(a) and 504

**CDC Small Business Finance**

– SBA 504 specialist

– Works with brokers

Various SBA Preferred Lenders

– (too many to list, but most accept broker referrals)

Debt Funds & Alternative Capital

Various Private Debt Funds

– Blackstone

– Starwood Capital

– Brookfield

– KKR Real Estate

(Often work through placement agents/brokers)

Commercial Loan Broker Networks & Platforms

Commercial Loan Broker Association (CLBA)

– Annual conference

– Access to 75+ lenders

– Networking with lenders

– **This is a key resource for you**

CommLoan

– Commercial mortgage marketplace

– Platform connecting brokers with 650+ lenders

LoanStream Commercial

– Works with mortgage brokers

– TPO (Third Party Originator) focused

– Commercial loan products

Critical Points for Your Commercial Division

Understanding the Commercial Landscape:

Commercial ≠ Residential Wholesale

– The wholesale residential lenders (UWM, Newfi, LoanStream residential, etc.) do NOT do commercial loans

– Commercial lending works differently – many deals are done through:

– Direct lender relationships

– Correspondent arrangements

– Referrals and Partnerships

– Commission split, not yield spread

Compensation Structures:

Loan Origination Fees 1-3% loan amount (can be paid by borrower or included in loan pricing)

– Referral Fees: 0.5-1% from lending institution

– Some lenders: Commission splits as low as 25% and as high as 50%.

– Working Capital/MCA: Commission can be 3-6% +

3. Licensing Issues:

– NMLS license covers most residential loans.

– Most states do not require NMLS licensing for commercial loans,

– Some states do have a commercial broker license requirement.

– Be sure to check Texas requirements.

4. How to Begin

Option A: Join CLBA (Commercial Loan Broker Association)

– This is an annual fee.

– You receive access to their lender network.

– There is training, conferences and this association provides you with credibility and lender contacts.

Option B: Establish Relationships

– Reach out to lenders with the list above.

– Several have formal broker programs.

– Complete the contract to receive online access, pricing and other benefits.

Option C: Enroll in a Training Program for Commercial Loan Brokers

– Commercial Loan Broker Institute,

– Alternative Funding Partners,

– Lender introductions are provided as part of the training.

Action Steps for Your Deal with a Hotel or Motel

Next Steps:

Contact and Work with These Lenders (Best for Your Deal):

– Select Commercial Funding They mention hotels/motels and are broker-friendly.

– Largo Capital: hospitality specialists.

CREFCOA – Online platform, simple broker access

-Commercial Loan Direct- Broker-centric

Broker Package Prep:

– Build a refined submission (follow my document checklist)

– Broker contact details and commission breakdown

– Presentation quality is a huge factor in commercial

If the Size is Right, Think About:

– CMBS if loan >$3M – Greystone, Argentic, Ready Capital

– SBA if owner-occupied – Live Oak Bank, local SBA lenders

– Private/Bridge if urgent – FCTD, Vaster (if in FL)

4 Immediately Join CLBA:

– Access to 75+ lenders

– Connections to top-tier commercial brokers

– Access to courses and webinars

– Enhanced reputation

Texas-Specific Resources:

– Texas has solid regional banks** that do hotel financing:

– Frost Bank (Commercial Division)

– Texas Capital Bank

– Comerica Bank Texas

– Independent Bank

– Most do broker referrals, particularly when you make connections

### **NEXA Commercial Division Long-Term Vision:**

1. **Lender Diversity:**

– Avoid having one or two lenders that you lean on

– Make connections in every category

– Different lenders for various deal types

2. **Start Narrow to Broaden Later:**

– You spoke to multifamily speciality

– Perhaps narrow down to multifamily + hospitality

– Establish yourself as the primary broker for the specified types of property.

3. **Enhance Your Platform:**

– CRM for commercial transactions (not residential)

– Custom documentation templates

– Tools for underwriting analysis

– Marketing collateral

4. **Expand Your Network:

– CLBA Membership

– Participate in events for commercial real estate

– Network with commercial real estate brokers (potential referral partners)

– Network with accountants and lawyers

Key Differences

Residential Wholesale (What NEXA mostly does):

– UWM, Newfi, LoanStream, etc

– Standard rate sheets, LPAs, and automated underwriting

– Rapid turnarounds, increased volume

– Yield spread premium pricing

Commercial Wholesale/Broker (What you are developing):

– More relational

– Individualized quotes for each transaction

– More lengthy (45-75 days is the average)

– Commission based on an origination fee

– Every transaction is different

—

Would you like me to:

1. Look for more detailed lender contact info for any of these?

2. Assist you in developing a broker application plan?

3. Look for more commercial lenders in Texas?

4. Give you a template for your commercial loan submission packets?

The most important thing is to know that commercial lending is about the relationships – you will have to know these lenders personally. The membership for CLBA will allow you to quickly connect with many lender relationships at the same time.

[Tom Miller]

Indeed, reptiles are not taking the SAT or joining Mensa, and the concept of ‘IQ’ does not apply.

• However, when it comes to problem-solving, learning, tool use, and social behavior, select members of the Sauria suborder of the order Squamata (reptiles, primarily lizards) are the most intelligent and prominent species of monitor lizards (these include the carnivorous komodo dragon and the Nile monitor).
• With that said, here is why they win the title of smartest reptiles.

Why Monitor Lizards?

• Cognitive Ability — Monitor lizards, most notably the komodo dragon, possess the largest focalized brains among reptiles, and unlike most of their brain box brethren, they use most of their brains.
• They can even recognize, train, and remember individual humans, as well as count (differentiating and distinguishing between various objects over a range of numbers).
• Solving Problems — They have shown the ability to navigate through a maze, and they are even crafty enough to use tool items.

To Compare Them To Others:

Given that they too possess larger brains than most reptiles, it comes as no surprise that crocodiles and alligators are among the most intelligent reptiles, in survival terms at least.

• They are known to use sticks as bait to lure and catch birds.
• For the most enduring reptiles, such as tortoises and turtles, and the Galapagos tortoise in particular, they have developed clever spatial navigation systems, but use less problem-solving than the others in terms of items.
• More often than not, snakes act on instinct, but some, like pythons, show the ability to learn the most basic things.
• Fun Fact: In a scientist’s experiment, monitor lizards did better than other reptiles in remembering things and adapting to their surroundings.
• In a hypothetical reptile IQ test, they might achieve a perfect score, which would be a perfect 10 in the ‘not being eaten by something’ category.

This is probably a riddle I’m not getting, like the crocodile, because it is always snapping up genius ideas.

If the highest IQ is meant, please provide the details.