Introducing OptioLend, an Automated Online Marketplace for Commercial Real Estate Financing
Columbus, Ohio – (BUSINESS WIRE) – OptioLend, an online commercial real estate lending (CRE) marketplace, launched today to greatly improve the loan application and financing process for borrowers, brokers and lenders. The launch of the platform coincides with an increase in CRE refinancing application volume triggered by the market disruption, making access to capital and favorable contract terms even more important for borrowers looking to manage current volatility.
Founded by a group of seasoned entrepreneurs with connections to the fintech, real estate and mortgage brokerage industries, OptioLend uses an AI-powered algorithm to connect CRE borrowers and brokers with the best possible lenders for their businesses. At the time of its market launch, OptioLend, with the participation of Loud Capital and MLG Ventures, raised start-up capital funding of approximately USD 1 million under the direction of the Schottenstein Family Office.
OptioLend automates every step of the credit process, from filling out the initial application and updating the terms of the contract to comparing offers and completing the transaction. The platform eliminates the need for each lender to develop unique loan applications. Instead, borrowers and brokers submit a single loan application for their deal. Using its proprietary algorithm and database of thousands of sources of capital, OptioLend identifies up to 20 lenders most suitable for the loan application based on recent lending history and other criteria. Borrowers and brokers can submit the application to these lenders with a single click. Since loan offers are received from banks, credit unions and other sources – starting 24 to 48 hours after the application is first submitted – borrowers and brokers can negotiate and close deals through the OptioLend portal.
“Despite a double-digit increase in refinancing requests, commercial real estate borrowers are struggling to find lenders who meet the unique needs of their businesses,” said Richard Geisenfeld, CEO of OptioLend. “While there is a relatively small pool of sources of capital focused on businesses over $ 10 million, mid-market transactions – $ 1 million to $ 10 million – have thousands of potential lenders, and OptioLend’s AI technology is getting borrowers and Help brokers find the right capital providers to close these crucial refis. ”
Geisenfeld added, “With more than $ 500 billion in commercial mortgage lending annually, the opportunity to dramatically improve the lending process is substantial.”
In creating a marketplace that allows users to access the full landscape of potential CRE lenders through a single platform, OptioLend is following an existing model to become the Commercial Real Estate Lending Tree. Since its inception in 1996, LendingTree has helped millions of people compare and close personal, personal and student loans. OptioLend’s technology was developed in part by Joel Lowery, a former LendingTree manager who built the back end of the LendingTree platform and used that experience to create an interface for OptioLend to run the process for borrowers and lenders equally effectively simplified.
While OptioLend is designed to largely automate the transaction process, the company is starting out with a concierge service from experienced capital advisors to assist users who need assistance throughout the entire loan-procurement process.
“In today’s marketplace, borrowers with limited access to sources of capital sometimes sign loan terms with interest rates up to 100 basis points higher than required,” said David Schottenstein, director of the Schottenstein Family Office. “OptioLend’s Ability to Do Business.” Facing multiple lenders is a quick way to ensure that borrowers are getting the best possible terms and we expect this breakthrough technology to be extremely enticing to borrowers and brokers across the country. ”
Eric Cohen, Co-Founder and Managing Partner of the Calida Group, added, “Building a real estate portfolio often requires working with a variety of sources of capital. Optiolend is an exciting addition to the market that will streamline the process and improve our access to lenders. ”
In addition to serving borrowers, OptioLend is also aimed at mortgage brokers so they can increase their capacity and throughput by using the platform directly or referring owners to it, earning up to 40% of typical origination fees in the process.
“OptioLend’s ability to streamline loan applications and create multiple quotes with minimal effort is a dream come true for licensed loan intermediaries like me,” said Mark Lojacono, CEO of Unlimited Business Loans. “As someone who works on CRE funding every day, OptioLend is an unparalleled time-saving tool that allows me to focus most of my daily energy on getting new deals rather than looking for the perfect lender.”
In addition to the technology’s value proposition for borrowers and brokers, OptioLend will also benefit the credit community by providing lenders with a deal flow tailored to their investment priorities and an online platform that streamlines the document review process. Lenders can also customize terms and conditions and communicate with borrowers and brokers through the OptioLend portal.
OptioLend was founded in 2021 as the “Lending Tree for Commercial Real Estate” and is a unique marketplace for commercial real estate loans. Using artificial intelligence and a database of thousands of lenders, the platform enables borrowers and brokers to expand their reach and secure more favorable terms on their loans. At the same time, it offers lenders an additional opportunity to close deals. The company, founded by seasoned entrepreneurs with connections to real estate, fintech and mortgage brokers, is supported by Family Office Schottenstein, Loud Capital and MLG Ventures.