Groundfloor has partnered with IRA Services to offer clients investment through tax-deferred retirement accounts; Groundfloor is the US market's first and only real estate platform with all of its investments open to non-accredited investors; through IRA Services, which provides a unique platform for facilitating investment in alternative finance, investors can now invest in Groundfloor's range of real estate offerings, achieving returns of 5% to over 20% in tax deferred retirement accounts; Groundfloor's P2P real estate lending platform has been growing substantially with $16.5 million in loans originated in 2016, an increase of 621% from 2015. Source
StackSource has launched an online lending platform for commercial real estate; the company provides a marketplace for connecting owners and developers with banks and non-bank lenders for credit financing; the multi-lending platform connects borrowers with lenders through the StackSource proprietary lender database; StackSource was developed from the TechStar accelerator program and was founded by Tim Milazzo. Source
A report from Crowdfund Insider says AssetAvenue has stopped originating loans; the California-based marketplace lender was providing property loans through its digital platform; firm raised $11 million in a Series A funding round in 2015; the firm's loans were primarily averaging approximately $2 million and the platform was open to all types of investors. Source
Lending Times reports on the business model created by Unison to improve the affordability of home ownership in the United States; the firm has developed two main products, a HomeOwner and HomeBuyer product, that are based on an investment model rather than a lending model; as a real estate investor the firm provides capital for borrowers and shares in the gain or loss of the real estate property's value; Unison and other innovative real estate businesses participated in a panel at LendIt USA 2017 titled, "The New Era of Buying & Selling a House" sharing further insight on how fintech innovation is evolving in residential real estate. Source
Wealth Migrate is claiming to be the first real estate online investing platform that has incorporated blockchain technology; the company focuses on cross-border real estate investing; blockchain is being applied to defining and recording smart contracts and a decentralized, unalterable record of investment transactions. Source
Online real estate lender and crowdfunding platform Patch of Land has hired Matthew Zall to serve as its new chief investment product officer; the new hire occurs as Patch of Land plans to expand into the single-family rental market, identifying an opportunity to capitalize on the 24 million US single-family units valued at over $6 trillion; Zall's experience includes single-family loan structuring at Blackstone Group subsidiary B2R Finance; he has also worked as a commercial real estate trader at J.P. Morgan and Bear Stearns; in comments regarding the new hire, Paul Deitch, Patch of Land's chief executive officer said, "The addition of Matt enables us to continue the expansion of our marketplace to fully serve the lending needs of more than 10 million Americans who directly invest in single-family residential properties and need consistent, reliable access to capital to fuel their businesses." Source
Peer-to-peer platform Octopus Choice is estimating GBP50 million ($64.08 million) in loans in its first year of business; the platform offers loans secured on residential property with average returns of 4.2% and loan to value ratios of up to 70%; the firm's loans have ranged from GBP95,000 ($121,744) to more than GBP5 million ($6.41 million); the firm has been fully authorized by the FCA and has received its HMRC approval to offer an IFISA. Source
Roofstock, an online marketplace in the single-family rental sector, raised $20 million in Series B funding from Lightspeed Venture Partners, Khosla Ventures, Bain Capital Ventures, Nyca Partners, QED Investors and SV Angel; they plan to use the proceeds to ramp up national expansion, invest in product development and roll out an asset management platform as they intend to reach domestic and global investors. Source
The real estate crowdfunding space has been a mixed bag; a couple of companies have continued to focus solely on...
UK debt crowdfunding platform Property Crowd has announced the launch of its innovative finance individual savings account (IFISA); the minimum investment for the IFISA is 5,000 British pounds ($6,220) and the account will target returns of 7% to 10%; Property Crowd will compete for investment across the alternative debt market however its offerings vary slightly from traditional P2P lenders since the firm's debt products include structured real estate bonds. Source