The closing of a $1 million real estate loan in eight business days highlights the expediency peer-to-peer lending can bring to the traditionally staid industries of traditional lending and real estate.
The two-year loan was closed by Money360, an online commercial real estate platform, on a 5,000 square foot retail property in Las Vegas.
The property used to secure the loan is a textbook example of platforms being able to find solid value propositions with revenue streams attractive to investors and quick turnaround times beneficial to borrowers.
The property was renovated just last year and is completely leased with an LTV ration of 70%.
“In this case, the sponsor came to us with a deal with a very short fuse,” Money360 President Dan Vetter said. “We were able to close the loan within eight business days, which is very fast for commercial real estate lending transactions.”
Mr. Vetter cited the loan as a prime example of P2P’s disruptive potential. “Peer-to-peer lending is reinventing the commercial mortgage lending industry in the same way it has reinvented the consumer, small business and student lending industries. Commercial real estate sponsors are beginning to recognize that they can obtain mortgage loans more quickly and at more favorable terms from a P2P lending platform such as Money360 than they can from more traditional funding sources.”
Money360 lends up to $15 million per transaction and states they are actively looking for commercial bridge loan opportunities.