How Technology Helps You Become an International Real Estate Tycoon

In my podcast, I explore the many facets of the high-tech world, from development to marketing, sales and entrepreneurship, all with the aim of collecting key information about startups for listeners to draw part of this knowledge sharing. So what did I discover this week?

Being a foreign citizen looking to invest in US real estate is complicated. Specifically, it is virtually impossible to obtain financing for investments in US real estate as a foreign citizen. The reason the process works like this, I’m sure, is because of the many economists, real estate experts, and more who claim to help the real estate markets, etc. However, it is interesting to note that the United States has never tried to find a way to provide a service that meets the obvious need for financing for foreign real estate investors.

Would you believe that the accepted method of investing in US real estate today, if you are not a US citizen, may require full cash payment?

Tim Mironov, Chief Data Scientist and co-founder of Lendai, preaches a new way to finance real estate for foreign citizens. Rather than working on a “cash up front” basis which has been the industry guideline so far, Tim and the Lendai team have developed a methodology to help foreign investors finance their US real estate purchases. United. Having now expanded to clients in places like the UK, Canada and Israel, they are rapidly gaining notoriety as having turned American real estate upside down – an unprecedented feat.

Help people tap into their buying potential

“You have to have 30% up front, but the rest the 70% we can help you with,” adds Tim, who sees Lendai as a whole new avenue for real estate investors and even regular people, like Tim or me. , to diversify. their portfolios with US-based real estate investments previously held back by complicated funding and payment regulations. Real estate is considered one of the greatest investment assets a person can acquire, more so when based in the United States. With plenty of opportunities and one of the largest housing markets in the world, US real estate is in many ways the dream of many real estate investors. “As a US citizen you will get very good terms for a loan or a mortgage, but if you are a foreign investor the US banks won’t look at you and you won’t get anything,” Tim points out.

This reality is painful for many foreign investors who may be law-abiding citizens and even have good credit scores and financial histories. The fact that US banks do not offer them financing options makes it difficult to enter US markets and in some cases just a dream. When Boaz Leviatan, one of the co-founders of Lendai, saw one of his Israeli friends trying to diversify his portfolio with American real estate, the complexity and impossibility of such a task made him realize that the industry was ripe for an innovative solution to change the status quo. “He went to American banks, and they told him no, even though he’s a good guy, all because he had no credit score,” Tim says, “and even in Israel, the banks had no way of valuing the property.”

Essentially, this meant that Boaz’s friend had no one to turn to when it came to finding funding. And, then between Lendai, with the ability to provide financing to overseas real estate investors, seeking to buy in the United States Talk to address a pain point where it hurts you the most, the Lendai team tries now to work with local real estate partners to promote their real estate investment solution and tool.

Even if I can get funding, how do you know I should?

Even when innovating on a clearly problematic process, teams need to consider where things might go a little wrong. Of course, when dealing with lending mechanisms, it is essential to assess the risk and reward for any potential transaction and loan recipient. Tim’s main focus is trying to mitigate that risk: “It’s data science in this business, and that’s what I’m building, underwriting models that help you understand the risk associated with a particular property or customer.”

The technology is not for just anyone to get funding. After all, when creating a solution such as Lendai, one of the fundamental aspects of it must be trust. If you don’t trust your lender, which is basically like a bank in this case, why would you work with them? This is why Tim’s algorithms are so critical to product development, especially when expanding into new markets.

As the world moves more and more towards remote processes, Lendai clearly addresses a sore point for foreign real estate investors around the world. Not only can you now invest from abroad in the United States, you can even do so from the comfort of your own home.