SOURCE: Money360

Money360

October 29, 2014 09:00 ET

Money360 Closes First Peer-to-Peer Real Estate Tranche Loan in the U.S.

Money360 Introduces Peer-to-Peer Tranche Loans to the U.S. With an $8.75 Million Commercial Real Estate Loan, Crowdfunded by a Diverse Group of Lenders and Offering the Borrower a Lower-Cost Blended Rate; Money360's Online P2P/Marketplace Lending Platform Helps Accredited Investors Find Attractive Commercial Real Estate Investment Opportunities and Helps Borrowers Access Alternative Capital Sources

LADERA RANCH, CA--(Marketwired - Oct 29, 2014) - Money360, Inc. (www.money360.com), the original peer-to-peer (P2P) real estate lending platform, has accomplished another "industry first" by closing the first tranche loan to be originated by a U.S. P2P platform. The $8.75 million commercial real estate loan was funded by a diverse group of institutional and accredited private investors, and is secured by one first-trust-deed loan. The loan was structured with an "A" tranche, at a lower rate, and a "B" tranche, at higher rate, with an overall blended rate paid by the borrower.

"We are proud to be not only the original peer-to-peer real estate lending platform, but also the first to introduce tranche loans to the U.S. peer-to-peer real estate lending market by closing a large loan with a diverse group of investors," said Evan Gentry, Founder and CEO of Money360. "What Money360 is pioneering here will give investors more selection in terms of risk, maturity and return, while giving borrowers access to lower-cost rates on a blended basis."

Money360 brings borrowers and investors together on loans backed by commercial real estate nationwide. The $8.75 million loan was secured by a 184,000 square foot industrial building in Salt Lake City, Utah, and was funded by one institutional investor, two private investment groups and five high-net-worth, accredited investors. The loan-to-value was 70 percent of real estate value and 53 percent of the total pledged collateral (including real estate and equipment/assets).

"Investors are drawn to Money360's P2P/marketplace lending platform for its exclusive and unique investment opportunities, so the tranche loan program is a natural expansion for Money360," said Dan Vetter, President of Money360. "Money360 investors now have an even wider spectrum of investment opportunities with the ability to calibrate their risk and return preferences within an individual loan. Money360's tranche loan program also benefits borrowers by offering them a lower-cost blended rate."

Money360 has been rapidly expanding since relaunching its website last month with new online tools. Money360 pioneered the peer-to-peer real estate lending model in 2010, but subsequently put the business on hold until regulation caught up to allow this model to operate. Since new regulation (Jobs Act - Title 2) implemented at the end of last year, Money360 has been quietly installing a seasoned leadership team and re-building the model for rapid expansion. The company is on track to close $25 million in peer-to-peer real estate loans by the end of the year.

Money360's P2P lending platform eliminates the overhead and processing costs associated with traditional banking/lending models. Borrowers and investors can quickly and easily register online at Money360.com. Borrowers gain access to alternative sources of capital from multiple investors, and are able to obtain competitive rates, flexible terms, and efficient service.

The Money360 team has more than 100 years of combined experience in real estate lending and investments. Evan Gentry, co-founder and CEO of Money360, is an entrepreneur and innovator with a strong background in the application of technology to the real estate and lending industries. Gentry is also the Founder and CEO of G8 Capital (www.g8cap.com), a real estate investment firm focused on opportunity-based acquisitions of residential and commercial real estate assets. Prior to G8 Capital, Gentry co-founded MoneyLine Lending Services, which revolutionized how many banks originated mortgage loans. Evan has led the origination and acquisition of billions of real estate loans while leading MoneyLine and G8 Capital.

Dan Vetter is the President and co-founder of Money360. Prior to joining Money360, Dan worked for PIMCO, the largest bond manager in the world with $2 trillion of assets under management. Dan oversaw $15 billion in managed assets across a wide range of investment strategies, advising institutional clients with respect to their residential and commercial mortgage allocations. Dan, a graduate of Harvard Business School, spent several years on Wall Street in various roles ranging from sell-side equity research to investment banking.

About Money360, Inc.
Money360 (www.money360.com) is the first peer-to-peer (P2P) lending marketplace for real estate loans, matching worthy borrowers with institutional and qualified private lenders. Money360 initially launched in California in 2010 and has now relaunched and expanded nationally. Lending opportunities are only available to qualified investors. Money360 originates, underwrites, coordinates and services all the loans. Borrowers can apply and lenders can register at money360.com.

Contact Information

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    Laurie Brooks
    Media Coordinator
    Money360, Inc.
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