State of the Real Estate Online Lending Market
State of the Real Estate Online Lending Market by Dan Ciporin, General Partner at Canaan Partners.
The real estate lending market is a $15 Trillion market, compared to $2.2 Trillion for consumer loans and $300 Billion for small business loans. Despite this, real estate currently only comprises of 5% of total marketplace lending. The steps necessary to increase real estate marketplace lending include: coming up with standardized risk metrics, enabling infrastructure and technology to manage data, and creating a real-time marketplace. It is interesting to see the business model parallels between marketplace lenders now and the successful internet giants, who made their money by being an advertising platform. Marketplace lenders are being the platform between investors and borrowers or sponsors.