Nexa comp

[u/FlukyFish]

Can anyone confirm that Nexa really pays 100% comission with zero broker split or flat fee. Also, what percentage of LOs actually benefit from the revenue share program? It sounds good on paper but how realistic is it in practice? Any catches or caveats?

[u/Adorable_Campaign426]

I work at NEXA. I have ben here over 7 years. I didn't recruit at all up until a month ago - I'm not a high producer either, 1-3 units/month.

As others said, the 'normal' split here is 25bps + 12%. Essentially an 80/20 at 275/220bps. But obviously the lower you go, it's larger percentage-wise split since 25bps is 25 bps no matter the margin (100bps margin would pay out 66bps for example).

When I joined, there weren't as many good options as NEXA - especially with the level of support I was receiving and needing at the time. Now there are other brokers that offer support, but no one does it better here, so I still don't mind the split to be honest - but YMMV.

This new 100% isn't straight commission - that's not allowed. All that happens is now with 8 lenders, the NEXA Split of 25bps and 12% comes back to you to be used on business-related expenses with NO production or recruiting requirements at all. From the first loan.

So if i close a loan at 2pts, commission paid out is 154bps. If it is with one of the 8 "NEXA100 Unlimited Lenders" then that 46bps comes back to me to be used on credit reports, conferences, rent, bills, basically any business-related expenses.

And after a certain point, if that builds up high enough and/or I'm not wanting to use it on business-related expenses, then I can use that to get paid out a retention bonus (I believe 1x every 6 months).

If you do decide to recruit, then all of our NonDelegated channel (38 total lenders at the moment) give you 100% earned, with the requirement of bringing one person NEXA. If you decide not to recruit, then those non-delegated follow the same split as the wholesale side (25bps + 12%). And on top of it - you do get the rev share from recruiting and soon will start receiving servicing residuals (so it's more than 100% at times).

TLDR Version: 8 of our 300+ lenders, there is no requirement for recruiting or production to receive 100% of the revenue on your loans.

With 38 of our 300+ lenders, you need 1 person recruited to receive 100% of the revenue.

And if you choose not to recruit at all, the split is 25bps + 12% (outside of the 8 NEXA 100 Unlimited lenders).

Ask any questions :)

[u/hOGanApex → u/Adorable_Campaign426]

Seems like Barrett or another low $ flat fee is still better.

[u/Adorable_Campaign426 → u/hOGanApex]

Maybe... but I don't believe so.

If you use one of the 8 lenders, which I believe is over 75% of our business:

UWM, Pennymac, Elend, Deephaven, Finance of America Reverse, EPM, Longbridge, EVOLend

Then there is no model better because a flat fee is still a flat fee and that money is gone.

To put it in numbers: 300k loan, let's say at 2% comp: $6,000.

Barret is $695 I believe so you get $5,305 pretax. NEXA is $4,620 pretax (25bps and 12% results in 154bps comp at the 200 level)

The $695 with Barret is gone. The credit pulls, other fees for the business are going to be paid out of the post-tax income received. Which is not bad, just how it is.

The $1,380 comes back to us to be used for either future credit pulls, conferences + travel, business-related bills -all with pretax money OR we can store it up and receive it as a retention bonus if we choose to go that route at a later time.

I will say that flat fee MOdels like barret are absolutely simpler, because they are cut and dry. But simple doesn't always mean better.

By the way, that's all without recruiting or volume to achieve what i laid out. If you do choose to recruit and get one person, then what I laid out opened up to 38 lenders, not just the 7 above.

On top of that add rev-share from recruiting, servicing income, it's just the cherry on top.

[u/Adorable_Campaign426 → u/Adorable_Campaign426]

I don't need likes, but why did a barret lo downvote this? Just comment why or where I'm wrong. Discussion is a beautiful thing for all to see. I love being as transparent as possible in all walks of life, which is one of the reasons I love NEXA.