Lever Capital Partners, the premier provider of financing for commercial real estate investors in Nevada, has amended the Chapter 645B of NRS relating to commercial real estate lending in the state. Under the new arrangement, unlicensed lenders may now practice transactions through a licensed mortgage broker, effective Jan 1, 2020.
Prior to the amendment, the law requires that anyone must be licensed by the Commissioner of Mortgage Lending in Nevada in order to conduct any transaction within the state. Since Chapter 645 exempts wholesale lenders who only fund or purchase commercial mortgage loans from the mortgage broker licensing and substantive provisions, this prevents wholesale lenders from experiencing wider opportunities in the state.
With this complication, Adam Horowitz, the principal at Lever Capital Partners spearheaded the amendment to the bill to open wider opportunities for out-of-state capital providers who want to participate in Nevada’s lending market.
“It was difficult for the state to track the transfer of funds, as the state lacks the staff to properly track the companies lending with or without a proper license,” said Horowitz. “Often the state focused primarily on unlicensed residential loans, therefore groups either lent illegally, filed for an exemption, or forewent lending in the state all together.”
According to a press release, the recent assembly Bill No. 398 has successfully amended Chapter 645B by adding the line, “The provisions of this chapter do not apply to a wholesale lender who only funds or purchases commercial mortgage loans.” With this amendment, Horowitz expects that this will allow faster projects, promote competition, and increase the dollars flowing into the state.
Founded in 2009, Lever Capital Partners acts as a commercial real estate finance brokerage company. To date, the firm holds a commercial lending license within Nevada and is on the board of the Nevada Advisory Council on Mortgage Investments and Mortgage Lending.
