December 07, 2010 10:03 ET
Money360 Launches First Peer-to-Peer (P2P) Real Estate Lending Marketplace
Streamlines Traditional Banking by Allowing Private Real Estate Lenders to Provide Mortgage Financing to Worthy Borrowers; $30 Million Already Committed for California Borrowers of Commercial and Residential Real Estate; Money360 Extends Peer-to-Peer Lending to the Real Estate Lending Market
LADERA RANCH, CA--(Marketwire - December 7, 2010) - Money360, Inc. (www.money360.com) announced today it has become the first peer-to-peer (P2P) real estate lending marketplace. Money360 has launched in California with plans for national expansion, and already has $30 million ready to lend to California borrowers for commercial and residential real estate loans between $200,000 and $5 million.
Money360 is not a bank, but a P2P business streamlining traditional banking by allowing private real estate lenders to provide mortgage financing directly to worthy borrowers. P2P is a booming business model, and Gartner Research has forecasted the P2P lending industry to "soar at least 66 percent to $5 billion of outstanding loans by 2013."
"Money360 is leading a revolution to replace traditional banking models of the past with a less costly, more efficient lending model," said Money360 CEO, Evan Gentry. "While banks and lenders turn away worthy borrowers these days, Money360 introduces peer-to-peer lending to the mortgage market by matching borrowers with qualified private lenders who have capital to place in a real-estate secured investment."
Money360 is making it possible for borrowers to obtain common-sense loans at a time when banks and traditional lenders are turning them away. Simultaneously, Money360 is providing opportunities for qualified private lenders to make real estate-secured investments at a time when other asset-secured investments are generating negligible returns. Money360 also handles all loan administration, loan servicing and collections on behalf of individual lenders.
"After a year of programming and development, we are pleased to roll-out Money360's proprietary LoanMatch technology that directly matches qualified borrowers with qualified private lenders," said Money360 Chief Technology Officer, Lee Decker. "We've already seen appreciable results after matching our initial group of borrowers with investors."
Individual borrowers/companies can post residential or commercial real estate loan requests, specifying the loan details, terms and maximum rate they will accept. With Money360's LoanMatch technology, borrowers gain immediate access to legitimate private lenders with capital focused on their specific loan type and market. Money360 has already successfully negotiated and closed loans for a number of satisfied borrowers, closings some loans in less than a week. The upfront fees for borrowers are a fraction of those typically charged by traditional private-money or hard-money lenders.
Private lenders are matched to pre-screened and underwritten loan requests that match their specified preferences. Lenders can diversify their risk by investing smaller amounts across multiple loans and join with other investors to fill a loan request. A minimum investment of $50,000 is required of each qualified lender, and each lender holds a fractional interest in the promissory note that is secured by a first trust deed. After lenders and borrowers are matched, Money360 handles the closing and creates one loan and one payment for the borrower.
Money360 brings together an experienced team of mortgage and financial service leaders whose roots are based in real estate lending and mortgage technology. Experienced mortgage technology expert Lee Decker has led the development of the website and proprietary LoanMatch technology. Money360 is led by Evan Gentry, who has successfully developed and managed companies focused on real estate investments, mortgage lending and mortgage technology.
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. Since 2007, G8 Capital has acquired more than 40 portfolios across 20 Managed Funds, representing more than $250 million in principal balance or real estate value. Prior to G8 Capital, Gentry co-founded MoneyLine Lending Services, which provided outsourced mortgage lending services for 50 banks and other financial institutions. MoneyLine's back-office platform and technology revolutionized how many banks originated mortgage loans. In 2006, Gentry led the sale of MoneyLine to Genpact, a GE Capital spin-off.
About Money360, Inc.
Money360 (www.money360.com) is the first peer-to-peer (P2P) lending marketplace for real estate loans, matching worthy borrowers with qualified private lenders. Money360 has launched in California, with national expansion plans underway. Lending opportunities are only available to qualified private lenders. Money360's proprietary LoanMatch technology directly matches qualified borrowers with legitimate lenders. Licensed with the California Department of Real Estate, Money360 originates, underwrites, coordinates and services all the loans. Borrowers and Lenders can apply at www.money360.com.