Money360, Inc., a peer-to-peer (P2P) real estate lending marketplace, has closed a $2 million commercial real estate loan crowdfunded by accredited investors. This was the third loan closed by Money360 in September. Money360 is on track to fund $25 million in peer-to-peer real estate loans before the end of the year.
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. Money360 has seen significant interest since relaunching its website last month with new online tools to match borrowers and accredited investors/lenders around the country.
Money360 brings borrowers and investors together on loans backed by diverse property types nationwide. The $2 million loan was secured by a first trust deed on a 120-unit apartment building in Kansas City, Missouri. The property is 96 percent occupied with steady cash-flow. Based on a third-party appraisal, the loan-to-value (LTV) was 64.5 percent. Money360 provided a 3-year loan at 11.5 percent interest. Money360 loans are funded by investment groups, banks, pension funds, high-net-worth individuals and other accredited investors.
Founder and CEO of Money360, Evan Gentry, stated,”Investors have been eager to participate in commercial real estate secured loans available on the Money360 platform because of the superior risk-adjusted returns. Accredited investors can purchase complete loans or fractional interests as low as $50,000 in crowdfunded loans, and Money360 investors can choose the investment opportunities that best match their investment preferences.”
Money360’s P2P lending platform eliminates the overhead and processing costs associated with traditional banking 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 which they might not otherwise receive from a traditional bank loan.
“Our full-service peer-to-peer approach to real estate lending and investment provides unique benefits to both borrowers and investors,” said Dan Vetter, Money360 President. “Money360.com currently is sourcing and closing loans for borrowers and investors who want the benefits that come from an alternative to their traditional models of borrowing and investing.”
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, 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.