·
[Editor’s note: This is a guest post from John Maute, Board Member at Money360. Money360 is a Gold Sponsor at LendIt...
The partnership will focus on Money360 providing pre-arranged financing options for eligible commercial properties listed for auction on the Ten-X platform; financing options on these properties will be transparently disclosed on the platform and Money360 will work with buyers to complete the underwriting, processing and closing of the loan; the partnership expands deal flow of commercial properties for Money360, which utilizes technology to enable commercial real estate loan transactions from $1 million to $20 million. Source
The Debt Exchange notes how US regulators are flagging some concern with commercial real estate investment concentrations, even as pricing shows steady demand for properties; regulators are finding bank ratios of commercial real estate loans to total risk-based-capital are approaching 300% in certain property markets (300% is possible through leverage) and loan-to-deposit ratios are approaching 100%, both flags on the risk side; the article notes that loan sales, to private investors as well as through securitizations, are an effective way to reduce these ratios. Source
P2P commercial real estate lender Relendex has received authorization from the Financial Conduct Authority; the platform provides secured commercial property loans through its P2P marketplace lending platform and now plans to seek the offering of innovative finance individual savings accounts for its investors; in comments regarding the authorization, Michael Lynn, the firm's founder and chief executive officer said, "FCA full authorization marks a fantastic start to 2017 for the Relendex team and platform which will further encourage and facilitate investment in commercial property from both our UK and foreign investors." Source
Money360 has reported another milestone in the nascent online lending commercial real estate market; the firm has originated $100 million in new commercial real estate loans in the past six months, doubling its total from August 2016; four recent loan closings for a total of $38 million helped the company reach its $200 million milestone; Money360 says it expects to exceed $500 million in loan transactions by the end of 2017. Source
Money360 is a marketplace lender for commercial real estate; in Q2 the company closed $143 million in loans making Q2 the company's largest quarter; to date the company has closed $350 million in loans and expects to surpass the $500 million mark by the end of the year; the press release provides further information about the deals closed. Source
The primary focus in the online real estate market has been on consumer and residential products however a significant opportunity appears to exist in commercial real estate with the size of the market valued at approximately $3.5 trillion; HousingWire provides a recap of LendIt's commercial real estate panel featuring the three primary companies active in the space including: Cadre, Money360 and Plum Lending; panelists discussed the success of the their businesses and the main challenges for new entrants including the complexities of data sets and the lack of technology solutions for commercial market services. Source
Pi Capital International LLC has advised Money360 on a $250 million structured debt facility; the funding comes from a financial institution in South Korea; Pi Capital was able to facilitate the transaction through its global alternative capital network. Source