Expedia 4 Commercial Debt
Issue 34 - May 28th, 2021
Thank you to all of the veterans in our incredible country that have served and those who have died to keep America the best in the world. I hope everyone has a safe Memorial Day weekend ahead!
Does a marketplace exist for commercial real estate investors/buyers to shop lending solutions for their acquisition deals? I know last week that I wrote about some futuristic ideas with the “de-fi” platforms, but today I am dialing it back to the present day world.
I was talking with a friend this past week in the commercial real estate brokerage world, and I asked him if an “Expedia” type search platform existed for loan options for his sector of the real estate industry. The short answer was “No, nothing like that really exists today outside of some debt brokers who represent multiple financing options…”. I was blown away that there isn’t a solution in this space today. I know there are crowdfunding platforms for specific deals like Fundrise and others attacking the alternative financing space, but I am taking it a step back from there.
IDEA ZONE: Let’s imagine a multi-family investor has a 200 unit apartment complex under contract in Austin,TX. This investor wants to shop rates and loan terms to see where they can get the best loan deal for this project. The investor goes onto the “Expedia For Commercial Debt” website, shares some stats on the deal, and then browses through potential loan options all in one quick place similar to home shoppers browsing on Better.com and other loan comparison marketplaces. If the investor want to get more information, then the contact info is right there and they can find the best solution for their particular property purchase. The platform could be monetized in various ways and could copycat the monetization techniques of other marketplaces in different verticals.
Why does this marketplace not exist? Is there anyone building something like this out there in the world?
This is a massive opportunity to streamline one of the most important aspects of the commercial property investment industry, and I am sure there a “million reasons this hasn’t been done” YET. It will be great to see this come to life, and I would love to hear from people who think this is a good or horrible idea.
Enjoy the weekend!
Newsworthy Links To Share
Austin,TX based Homeward announces massive fundraising round to continue building their “cash-offer” product which has exploded in this insane real estate market. They raised $136 million in a Series B funding round led by Norwest Venture Partners at a valuation “just north of $800 million.” The company has also secured $235 million in debt. (TechCrunch)
Spruce announces strategic nationwide partnership with Lincoln Property Company. Through this partnership, any Lincoln-managed community will have the ability to quickly implement Spruce’s tech-enabled service platform, allowing its residents to easily book services including housekeeping, chores, pet care, laundry, and more. By orchestrating the hundreds of service interactions that take place every day in a large apartment community, Spruce is changing the way people live in their homes. For property managers, a relationship with Spruce enables them to increase resident engagement and retention and better manage access onsite. (Business Wire)
SnapDocs announces $150 million Series D funding round. Powering millions of closings a year, Snapdocs has a proven track record of creating a single, scalable process for every type of closing. Thus, enabling lenders and settlement to close more loans faster and at lower costs, while providing a better experience for their borrowers. (Snapdocs Blog)
Fintech startup NestEgg launches “Freedom”, a subscription-based product for landlords to manage single family rentals more efficiently. NestEgg provides a platform that enables investors and landlords to monitor activities such as collecting rent, scheduling building and unit maintenance, and answering resident inquiries. This space is heating up with competition, but I like the approach NestEgg is taking with the low priced monthly plan and focus on the smaller size landlord customer. This a company to keep an eye on as they scale. (Inman)
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