@Josh Nix @Steve Hiltabiddle
Thank you both for your responses. I did do some research on available loan origination and servicing platforms available. So, there is a danger of saturation. Their price points seem to be in thousands per month (from the few publicly available price points) which economically rules out a lot of small lenders. At ~ 1% interest a month, you would need to have a loan book of $100k just to afford the subscription fees. That raises the question of what is the book sizes for small lenders?
For people wanting to start out, there are alternatives like GroundFloor that let you invest small amounts and diversify across their entire loan portfolio.
These are some ideas I’ve been playing with:
1. Real-time monitoring of a borrower’s bank accounts. I noticed lenders always ask for a bank statement to prove funds but it was a one-off statement. I could expand into it by pulling the borrower’s corporate entity’s accounting records and couple it with property data.
2. A way for smaller lenders to scale their business by building the SPV infrastructure for them to pool capital for each deal. This might be attractive for lenders who can originate opportunities and want to spread their proprietary capital across a few deals and syndicate capital for the remainder. Think of it as AngelList Syndicates for RE private lending.
3. A way for borrowers to raise Gap funding working with their lenders. This would be similar to 2 but the people paying for the service would be the borrowers.
