GPARENCY Raises $ 15 Million to Streamline Commercial Mortgage Industry by Connecting Borrowers Directly with Banks
Homeowners in the commercial mortgage market have long relied on mortgage brokers to manage financing. Because the privilege of having a broker acting as a liaison between credit institutions and borrowers entails significant fees paid to the broker, in particular when it comes to large mortgage amounts. Technology is addressing this inefficiency. GPARENCY is a technology platform that directly connects borrowers to banks for a simple lump sum of $ 5,000. In addition to managing origination, GPARENCY has a team of experts to work out the details of the condition sheet on an hourly basis capped at $ 15,000. For up to $ 20,000, borrowers can replace manual labor performed by a commercial mortgage broker without sacrificing conditions, time or resources.
AisleWatch met the founder and CEO of GPARENCY Ira Zlotowitz to learn more about how the commercial mortgage industry is ripe for innovation, corporate strategic plans, initial product launch, final round of funding and much more …
Who were your investors and how much did you raise?
There were 150 investors and entities, ranging from real estate professionals, bank executives, investment brokerage firms, competing mortgage brokerage firms, securities firms, real estate owners, investors and providers. departments – all industry leaders – as well as several senior venture capitalists. It was the largest ever commercial real estate fundraiser, oversubscribed at $ 15 million.
Tell us about the product or service that GPARENCY offers.
GPARENCY offers a new direct-to-banking formula for the mortgage industry with a model that allows borrowers to benefit from transparency, technology and professional services with the expert touches of top real estate finance executives. We are ushering in the era of the self-directed commercial mortgage.
What inspired the start of GPARENCY?
The world is constantly changing and I wanted to create a business that fulfills a market need – the strong desire of clients to work directly with banks.
How is GPARENCY different?
We are leading the revolution in commercial mortgage lending. In the past, commercial property owners mistakenly believed that they should delegate the mortgage process to an expert. The owners believed the brokers would give them a better deal and that there was no other option. GPARENCY is revolutionizing this by charging a flat fee of $ 5,000 – changing how and how people go to the bank, providing brokerage services, at the cost of a lawyer.
GPARENCY’s intuitive and user-friendly technologies allow savvy consumers to make their own origin and call the cavalry only if they decide they want help.
What is the GPARENCY target market and what is its size?
We are targeting Commercial Property Owners (PMs), which is a multi-billion dollar industry.
What is your business model?
For a lump sum of $ 5,000, GPARENCY offers a banking team of financing coordinators to subscribe, purchase and negotiate the condition sheets. In other words, for only $ 5,000, we deliver a condition sheet. Once the list of conditions is signed, the customer can choose to work directly with the bank or work with GPARENCY for $ 500 per hour – capped at 30 billable hours – for a maximum total of $ 20,000.
Over the next year, we will also deploy exciting technology-based services to further our mission of empowering GPs.
Finally, we’ll roll out a subscription pricing model to further streamline costs.
What are your post-COVID office plans?
Zoom United States. We have employees all over the world and will continue to do business remotely.
How did the funding process go?
I was fortunate to receive insane interest from the start. My stress was really having to ask people to put in less money so that I could welcome more investors.
What factors about your business caused your investors to write the check?
It was a mixture of “trusting the jockey” and, as Warren Buffet puts it, “investing in what you know”. Finally, all 150 were inspired by our mission to lead a revolution.
What are the milestones you plan to achieve over the next six months?
I expect the first phase of the technology to be deployed, more than 50 banks and strategic partners involved, and a growing customer base month by month.
What advice can you give to companies in New York that don’t have a new injection of capital in the bank?
Double down, hit reset, and focus your resources on this world rather than the past.
Where do you see the business going now in the short term?
Revolutionize the industry! Our mission is to make general practitioners the absolute owners of every element of their investment and their assets. It starts with creating a world where they are actively involved in acquiring their own mortgages. By lifting the veils of mystery, disinformation and back door tactics, we allow homeowners to capitalize on the democracy of technology while benefiting from human capital and guidance.
What’s your favorite outdoor restaurant in New York City?
The Covid made me forget! I have only eaten at a restaurant in New York twice since COVID started.