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Forbes Fintech 50 2018: The Future Of Real Estate Investment And Finance

This article is more than 6 years old.

Sure, sites like Zillow and Trulia have forever changed the way we shop for homes and Airbnb has re-imagined the way we rent them out. But the underlying pipes that make the real estate market run have largely remained stuck in the past. The seven real estate companies on the Forbes Fintech 50 list for 2018, including five newcomers, are trying to change that. Companies like Better Mortgage, Blend and LendingHome are reengineering the way mortgages are applied for and underwritten. While Cadre and Fundrise are moving real estate investments from Excel spreadsheets to the digital world.

Better Mortgage,

Digital-only mortgage originator estimates the loan an applicant qualifies for within three minutes using stated income and a credit score check. Once borrower uploads required documents, company says, it usually completes underwriting and issues a “verified pre-approval letter” within 24 hours, allowing house hunters to compete with all-cash buyers. Better Mortgage gets paid by the institution buying the loan, not directly by consumers, and uses its proprietary software to match the two. A matching guarantees assure borrowers they’re getting a fair deal.

Bona fides: Fannie Mae and five of nation’s six largest banks buy its loans.

Founder & CEO: Vishal Garg, 40, founder of defunct online lending platform MyRichUncle

Funding: $65 million from Kleiner Perkins Caufield Byers, Goldman Sachs, IA Ventures, KCK and Pine Brook Partners

Threat to: Traditional mortgage brokers

Forbes on Better Mortgage: Is This Company About To Transform The $1.5 Trillion Mortgage Industry?

Blend

Speeds up the mortgage approval process at the nation’s largest lenders with its cloud based white label software. Prospective borrowers can link to online bank statements, tax returns and pay stubs. That chops days off the approval process and reduces document fraud. Plans to expand its services this year to auto, student and other lenders

Bona fides: Wells Fargo and U.S. Bancorp are already onboard

Cofounder & CEO: Palantir-alum Nima Ghamsari, 32

Funding: $160 Million from Allen & Company, Andreessen Horowitz, Founders Fund, Thrive Capital, Greylock and Emergence Capital. Latest valuation: $500 million

Threat to: SoFi, Better Mortgage, Quicken Loans’ Rocket Mortgage

Forbes on Blend: Blend Wants To Bring The $2 Trillion Mortgage Market To The Modern Era

Cadre,

Invitation-only platform allows high net worth individual and institutional investors to buy shares in commercial real estate and multifamily deals at lowers fees than are typical in real estate funds and REITs.

Bona fides: Since inception, has closed more than $1 billion in total deals through its platform.

Founder & CEO: Ryan Williams, 30, a Forbes 30 Under 30. (Trump son-in-law Jared Kushner was a cofounder.)

Funding: $130 million from Andreessen Horowitz, Breyer Capital, Ford Foundation, Goldman Sachs, Thrive Capital and others. Latest estimated valuation: $800 million

Threat to: Real estate investment funds, commercial real estate brokers

Forbes on Cadre: How A 28-Year-Old Plans To Upend The $81 Trillion Global Real Estate Investment Market

Fundrise,

Crowdfunding platform that allows anyone with $500 to invest in diversified real estate portfolios. Launched eFunds in 2017, selling shares in portfolios dedicated to building and remodeling single family housing in urban locations.

Bona fides: About 17,000 investors have put $300 million into deals through the platform.

Cofounder & CEO:  Ben Miller, 41, son of Washington D.C. developer Herbert  S. Miller

Funding: $50 million from Renren, Guggenheim Partners, Berman Enterprises and others

Threat to:  Other real estate crowdfunding sites, traditional REITs

Forbes on Fundrise: Home Sweet Investment: Fundrise Introduces New Way For Millennials To Endow Their Future Houses

GreenSky,

Provides on-the-spot financing for home improvement projects (with loans up to $65,000) via a network of contractors and bank partners -- without itself taking on the risk of defaults. Most borrowers don’t pay a dime in interest thanks to zero-interest promotional periods that last from 6 to 60 months. Recently began offering financing at doctor, dentist and veterinary offices.

Bona fides: Has facilitated over $10 billion in loans

Cofounder & CEO: Billionaire David Zalik, 44, who skipped high school, then dropped out of college to run his first startup

Funding: $560 million from PIMCO, TPG, Wellington Management, Iconiq Capital, QED Investors, DST Global and Fifth Third Bank. Latest valuation: $4.5 billion

Threat to: Synchrony Financial, Wells Fargo and other home remodeling lenders

Forbes on Greensky: Handyman's Helper: How GreenSky's David Zalik Skipped High School On His Way To Becoming A Billionaire

Lemonade, New York City

Provides insurance to urban renters for as little as $5 a month and to homeowners for as little as $25. Customers can sign up, modify or cancel their policy on the app. Novel model, designed to cut administrative costs and disputes, lets Lemonade keep 20% of customer premiums, with the rest earmarked for claims payouts and any surplus divvied up to charities of customers’ choosing. About a third of claims are paid automatically.

Bona fides: In 2017, donated 10% of revenue to nonprofits.

Cofounders: CEO Daniel Schreiber, 46; COO Shai Wininger, 44

Funding: $180 million from Softbank, Sequoia Capital, Aleph, XL Innovate, General Catalyst, Thrive Capital, Tusk Ventures, GV, Allianz SE and Sound Ventures. Latest valuation: $600 million.

Threat to: Progressive, Allstate and other traditional insurance companies

LendingHome

Four year-old online lender started out providing bridge loans to fix and flip housing investors, a historically underserved segment. With original product now available in 25 states, LendingHome has expanded into personal mortgages in 14. Also offers investments in its flip loans to accredited investors.

Bona fides: $2 billion in loans made; 10,000 homes financed

Cofounder & CEO: Matt Humphrey, 30, a Forbes 30 Under 30, who sold a daily deal site for $100 million when he was 24

Funding: $166 million from Renren, Ribbit Capital, Foundation Capital and others

Threat to: Traditional mortgage lenders, Better Mortgage

Forbes on LendingHome:  Revamping The Home-Buying Process

With reporting by Lauren Gensler and Kristin Stoller.

Read more:

Full list of the Fintech 50 2018

Forbes Fintech 50 2018: The Newcomers

Forbes Fintech 50 2018: The Future Of Lending

Forbes Fintech 50 2018: The Future Of Investing

Forbes Fintech 50 2018: The Future Of Payments

Forbes Fintech 50 2018: The Future Of Personal Finance

Forbes Fintech 50 2018: The Future Of Blockchain And Cryptocurrency

Forbes Fintech 50 2018: The Future Of Wall Street And Big Data

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