Last summer, online real estate transaction marketplace Ten-X Commercial announced a partnership with Money360, a technology-enabled direct lender. These two innovative real estate technology companies will work together to improve the online real estate transaction process.
Ten-X Commercial, which features both auction and non-auction transaction formats, enables buyers, brokers and sellers to transact commercial real estate entirely online. By streamlining the transaction process end-to-end, Ten-X accelerates transaction periods, close rates and creates a multiplying effect for buyers, sellers and brokers, placing them at the center of a global, yet tailored, market. Ten-X Commercial has transacted nearly $20 billion of commercial real estate, ranging from office, retail and multifamily properties, to land and self-storage facilities.
Money360 is a commercial real estate finance platform that offers a fast, transparent and reliable experience for borrowers and investors. As a nationwide direct lender, Money360 has grow quickly by offering borrowers speed, convenience and reasonable terms on commercial real estate loans from $1 million to $20 million.
Under this agreement, potential buyers of qualifying CRE properties listed on Ten-X Commercial would be pre-underwritten for bridge and/or permanent loans by Money360. The companies say that this collaboration will give prospective buyers assurance that they will be able to procure the necessary financing to close on a deal, while providing brokers and sellers with confidence that once terms are agreed upon, the buyers will be able to source a loan and close the deal.
Propmodo sat down with Ten-X Commercial General Manager Steve Jacobs to learn more about the Ten-X/Money360 collaboration:
How has technology altered the CRE process?
There used to be a widespread narrative that the commercial real estate space was slow to adopt to technology. However, over the past few years CRE tech has made incredible strides and industry professionals are increasingly receptive to leveraging tech to streamline and amplify their workflow. As new solutions have proliferated, they have enhanced processes and solved problems in all corners of the industry from property management and leasing, to investment sales.
On the sales side, Ten-X Commercial places real estate professionals at the center of a marketplace that spans the entire globe and opens the door to global buyers previously unreachable through traditional channels, thus multiplying reach and maximizing returns. By making the transaction process more efficient, we’ve also expanded the bandwidth of many of our brokers. In fact, there are several brokers who have transacted more than 200 deals on Ten-X over the past few years — volume that would be difficult to produce outside a digital marketplace. Ten-X also presents buyers with access to a global pool of high-quality assets with a wide range of deal sizes, product types and geographies, giving investors the ability to make a market that supports their investment goals.
How will this partnership impact the speed, transparency and funding of CRE properties?
The vast majority of investors require financing to facilitate their CRE acquisitions and our partnership with Money360 streamlines the financing portion of the deal process. Ten-X prides itself on its incredible efficiency: Once the buyer and seller have agreed to terms, an asset on the Ten-X platform typically takes no more than 30 days to close. During that 30-day window, investors meet with banks, provide them with the necessary property information and ultimately secure the financing that will enable them to close the acquisition. This can all be done successfully within 30 days, but it involves completing paperwork in a very contracted timeframe. In many cases, securing a loan can be challenging and delay the closing process.
Ten-X has partnered with Money360 to expedite the process and identify properties that are appropriate for pre-arranged financing. Money360 pre-underwrites loans for assets before they are even listed on Ten-X. When browsing for properties, assets with pre-arranged financing are identified and easily searchable. Because of Money360’s upfront legwork, investors know what financing terms are available before they ever place an offer.
This partnership has benefited our users. First, it expands the buyer pool because the pre-underwritten loans assure investors of their ability to secure financing for the property. In many cases, we anticipate the pre-underwritten loans to increase the size of bids or offers, due to the larger buyer pool and investor awareness that high-leverage financing is available. Additionally, it increases the speed of closing and the close rate. Buyers no longer need to scramble at the last minute to secure a loan. We have already experienced a sharp reduction in the number of delayed closings because a buyer is unable to secure a loan in time.
What does this announcement mean for the CRE industry?
At Ten-X Commercial, we are focused on amplifying the potential of every transaction, but we are always exploring new ways to empower our customers with solutions that address the industry’s pain points. By partnering with Money360, we are streamlining the transaction and removing yet another hurdle from a traditionally cumbersome process. Technology has made commercial real estate transactions much more streamlined and this partnership reflects that ongoing trend.
What else should our readers know about this partnership?
Money360 is at the forefront of technology-enabled CRE lending and their streamlined process has been incorporated directly into Ten-X Commercial’s transaction platforms. This partnership is designed to give buyers a customer-friendly solution to securing a loan for their acquisition, and it will benefit buyers, sellers and brokers alike.