The commercial real estate lending market has been operating in an old school model for far too long. It is time for a paradigm shift. Banking tech is behind the times – so much that 43% of banks were still using COBOL in 2019. This is a programming language that pre-dates the internet.
It is even possible that alternative lending platforms are threatening the commercial banking industry completely. Consider such online alternatives such as Crowdstreet (over $1.25 billion invested), Fundrise (over $1 billion invested), and Yieldstreet (over $375 million invested).
Why are so many startups starting to crop up in this space? The traditional commercial real estate loan takes a whopping 3 months to close! After months of negotiation, it is rare for the parties to reach the exact criteria in the deal that they wanted. With agile technologies taking the place of a lot of the manual processes, it is likely that the deal structure will move in a more nimble direction. Thus, this will allow more deals that are closer to the borrower preferences to happen. Finding a reliable commercial real estate IT consultant can help with any of your commercial real estate IT woes.
The pandemic has changed much in commercial real estate, so hopefully the industry will adopt some disruption in the form of technological innovation. Make your way into commercial real estate lending through technological innovation. Learn more in the visual deep dive below: