Money360, a real estate marketplace lending platform, has partnered with an online lending firm and secured a $100 million funding arrangement.
The money was secured through a $100 million loan purchase agreement and partnership with a leading New York investment firm that has pioneered online lending. Money360 has also raised an additional $10 million in cash through its subsidiary, M360 Fund I, to fund its commercial real estate loans.
Evan Gentry, CEO and Founder of Money360, commented:
"We are excited to be partnering with this leading New York investment firm, and that so many investors are enjoying the opportunity to invest in these attractive opportunities. The additional funding capacity will allow us to keep up with the growing demand that we are seeing from commercial real estate borrowers."
Since relaunching in September 2014 the company has experienced significant growth and had more than $150 million in loan requests in March this year.
Dan Vetter, President and Co-founder of Money360, added:
"We are delighted to be working with this new investment firm and providing all of our investors with legitimate investment opportunities, which have continually proven to yield higher returns at lower risk than traditional investment vehicles. The real estate peer-to-peer lending market presents an excellent opportunity for both investors and borrowers alike, as it allows them to bypass traditional bank loan models. We are grateful for the opportunity to continue to showcase the value and benefits of using this lending model for both parties."
Back in November Money360 was the first peer-to-peer platform to launch a P2P real estate tranche loan. The platform launched a $8.75 million Commercial Real Estate Loan. The benefit of the structured loans is that it caters to a broader variety of risk appetites and allows a broader investor base to become involved.
The real estate crowdfunding market is one that is experiencing significant growth. A recent Massolution report highlighted that real estate crowdfunding is expected to increase by 150% in 2015 equalling $2.57 billion, and that US commercial and industrial property crowdfunding should increase by 250%. The investment in Money360, and in other real estate platforms such as AssetAvenue, that raised $11 million this month, proves that the sector is expanding and is on its way to meeting these growth predictions.