Marketplace Lending’s Impact on CRE

Gentry: “Right now, we think of CMBS and banks as the primary lending sources, and then there’s everyone else, but marketplace lending will become more mainstream as regulations continue to impact the market.”

IRVINE, CA—Some global estimates are seeing gains at between 40% and 60% for marketplace lenders, thanks in part to increased regulations on traditional lenders, Money360’s CEO Evan Gentry and president Gary Bechtel tell GlobeSt.com. The firm recently surpassed the $100-million mark in closed commercial real estate loans with the completion of $15.25 million in recent deals that reflect the escalating growth of the marketplace lender’s portfolio, and Gentry attributes much of the company’s recent growth to a contraction of the CMBS market. The company has recently seen more than a 100% increase in applications from borrowers turned down by traditional lenders. We spoke exclusively with Gentry and Bechtel about marketplace lending, fintech platforms—defined as an economic industry composed of companies that use technology to make financial services more efficient—and how marketplace lending is changing the public’s access to capital and investment opportunities.

GlobeSt.com: How is growth in the industry is affecting your business?