As to make the underwriting process easier, faster, and more efficient, the company’s goal is to give non-resident US property investors the ability to get an instant loan, with competitive rates and finance using its AI-based Triple Digital Underwriting System platform.
The startup received an early round of funding Wednesday led jointly by Meron Capital and Cardumen Capital with underwriting help from Discount Capital, Skywell Capital Partners, Mindset Ventures, and Viola Credit.
Lendai’s fundraising will be used to rapidly expand their reach and help foreign investors invest in U.S. residential real estate properties, so they can make money with much less hassle. The company will also use the seed funding to expand services to more US states in hopes to launch new real estate financing programs.
Formed in 2019, the Tel Aviv, Israel-based Lendai, with United States operations headquartered in Miami, has created a global network of almost 200 partners consisting of real estate agents, property management companies, loan brokers, real estate marketplaces, property developers, attorneys, accounting specialists, and various other types of lenders. “Pretty much anyone who touches a US-based real estate operation, and who works for a foreign national, is a Lendai partner,” says CEO and co-founder Yair Benyamini.
Benyamini mentioned that the company partners and clients are scattered around and include locations like Australia, Singapore, Europe, UK, Israel, and Canada. Partners use Lendai’s partner platform which connects their foreign investor clients to United States financing.
Using Lendai as a foreign investor who’s ready and looking to invest in US real estate, when contacting your realtor, accountant, property manager, or loan broker, Lendai will facilitate the deal.
The company says their fintech platform will help foreign investors get a clear understanding of loan pricing in minutes and closing can be completed in one-third the time it takes US lenders. Other selling points of Lendai’s platform are that it provides an easier way for homeowners to obtain loans based on the current value of their properties, enabling overseas investors to buy property with a small deposit and without having to purchase all-cash deals. This will also open up the service and product offering for local developers too.
Benyamini stated that the $35 million seed round will help expand Lendai’s services to more US states, including California, New York, Arizona, and Nevada, and launch new financing loan programs. As a consequence, more countries will be able to access larger loans while waiting times are short and customer experience is excellent.
Benyamini also mentioned that his company will soon be releasing new loan programs for short-term rentals (including Airbnb-specific loans), second homes, and vacation property in the coming months. Lendai plans for seed financing will be put toward developing tools in our platform that would go beyond loans to help borrowers scale up their business, become more competitive, and keep a close eye on their assets.