Financial services startup Lendai has landed $35 million in equity and debt seed funding to expand its artificial intelligence-enabled underwriting system across the United States.
Lendai’s platform makes the underwriting process fast, easy, and efficient using AI-based technology that helps level the playing field for global investors in the U.S. residential real estate market.
The fintech startup provides loan pricing transparency and highly competitive rates as well as access to immediate funding for foreign and non-residential investors—often in one-third of the time it would take many US lenders.
Launched in 2019, Lendai has developed a global network of nearly 200 partners including real estate agents, property management companies, loan brokers, marketplaces, developers, lawyers, accountants and other types of lenders.
Its platform also makes it possible for existing homeowners to receive loans based on the current value of their properties—allowing foreign investors to access the world's largest private debt market.
The seed funding will be used to expand Lendai's services to new markets including California, New York, Arizona, and Nevada, as well as launch a new financing loan program which will help foreign investors receive larger loans with faster turnaround times.
CEO Take: As an online mortgage lender, Lendai is helping remove the substantial roadblocks that exist for the average investor to purchase an investment property in the U.S.
Most American banks are extremely hesitant to lend to foreign or non-residents with little or no established credit history in the United States.
It forces the vast majority of foreign investors to make up-front, all-cash offers—an unrealistic situation for your average middle-class investor. Ultimately, it precludes foreign investors from making a real estate investment based solely on their equity and that's where Lendai is helping to bridge the financial gap for foreign investors where the traditional banking system is failing.
Lendai works beyond the limits of all-cash deals and provides middle-class investors with access to the world's largest private real estate market. In fact, over the past 10 years, foreign investment in U.S. residential property totalled $1 trillion.
The days of travelling to the nearest U.S. embassy, signing documents in front of a notary, or even getting documents apostilled are now over thanks to Lendai, which allows users to complete their entire loan process, from application to close, from the comfort of their own home around the world.
And the best part is that artificial intelligence, technology, and data is what's helping Lendai lead the charge for the democratization of foreign investment in the U.S. real estate market.
It's actually data that enables Lendai to determine the creditworthiness of foreign investors across borders. Its artificial intelligence-based platform leverages thousands of data points (from both the borrower's origin country and the U.S.), such as current and future property value and cash flow, to create an accurate assessment of both risk and potential revenue.
Congratulations to Lendai on your recent seed round and we're excited to see what's in store for you in 2022 and beyond!
If you're looking for the most up-to-date and accurate property data on over 150 million residential and commercial properties in the U.S. to help expedite Lendai's risk evaluation process and provide your customers with lightning-fast mortgage approvals, click below to chat with us!
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