June 30, 2018
Fintech Driving Change in Real Estate Finance
Fintech is poised to disrupt nearly every industry…and probably for the better. A recent article published in The Bridge, Brooklyn’s Business News, highlights how fintech will create efficiencies in real estate finance and lower barriers to entry in real estate investing.
A recent event in Williamsburg, Brooklyn brought together fintech startups to pitch their businesses to potential real estate clients and investors. The article summarizes how these new startups aim to take on the age-old real estate business.
For many millennials, investing in real estate can seem like a pipe dream especially when carrying the burden of student loan debt. Startup Meridio enables people to invest in shares of properties through the blockchain. Meridio converts individual properties into digital shares on the blockchain, seamlessly connecting diverse investors and asset owners to invest and trade. Investors do not need large capital up front to participate. Asset owners can list their properties on the Meridio platform and unlock additional capital from the power of collective, smaller investors that previously were barred from entering the market.
Contract Simply aims to simplify and mitigate risk in the construction loan process. With lots of steps comes lots of risk. The traditional construction loan process contains many steps with information stored in various locations. Contract Simply centralizes that information, automates previously manual steps and streamlines the approval process. According to CEO, Will Mitchell, the slow payment process costs the construction industry over $40 billion each year.
Judging Quality of Properties
Rentlogic helps renters discover properties through their building grading system. Great buildings, especially in New York City, can often go unnoticed and renters can spend a lot of time sifting through duds. The grading system combines NYC’s 3-1-1 system and in-person inspection results to produce a letter grade renters can view prior to visiting a property. Property owners can post their grade to online listings as a way to promote their rentals. While companies like Rentlogic may not fall directly under the category of fintech, they help reduce waste in a venerable industry that lacked innovation for decades.