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Marketplace Lending for Commercial Real EstateWALL STREET + SILICON VALLEY =
The Next Gen of Commercial Real Estate FinanceLendIt Conference, April 2016
John Maute, Board of Directors
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LendIt Conference 2016, San Francisco
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Information and Distribution Combined, Power and Control
The financial institutions are in control…The Gate Keepers! They have the broker network sourcing loans They have the investor relationships to sell the loans
Who did the financial institutions sell loans to? Other lenders…Participations….. “The Sharing Economy” Securitizations of Commercial Mortgage Backed Securities (CMBS) Public fixed income funds
Who were the investors in these funds? You, me, and people just like us that need stable fixed income cash
flow and to save for retirement
What Made Wall Street Successful?
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If You Do Not
Change, You May
Become Extinct
Source: “Who Moved My Cheese?” Dr. Spencer Johnson, 1998
Who Moved My Cheese?
Marketplace Lending Summarized in Six Words:
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Traditional Lending Value Chain
BorrowerApply for
Credit / LoanBanks /
ServicersPackage
Loans
InvestorsMutual Funds
Tranches Securitization
Borrower Investor
Peer-to-Peer / Marketplace Lending
“Financial Transformation via Online, Direct Lending”
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Source: “Who Moved My Cheese?” Dr. Spencer Johnson, 1998
Old Beliefs Will
Not Lead You to
New Cheese
Who Moved My Cheese?
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As this industry develops, together, we are stewards for the industry. It is our responsibility to:
Develop best practices Help create responsible regulation Keep out bad actors If we fail to do it ourselves, the government will do it for us
Together, we can create an ethical and transparent system governed by appropriate regulation in order to grow and become part of the sustainable foundation of the Commercial Real Estate Finance industry
Great Opportunity Comes with Great Responsibility
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Source: “Who Moved My Cheese?” Dr. Spencer Johnson, 1998
Change HappensThey Keep Moving the Cheese
Anticipate ChangeGet Ready for the Cheese to Move
Monitor ChangeSmell the Cheese Often So You Know When It is Getting Old
Adapt to Change QuicklyThe Quicker You Let Go of Old Cheese, The Sooner You Can Enjoy New Cheese
ChangeMove with the Cheese
Enjoy Change!Savor the Adventure and Enjoy the Taste of New Cheese!
Be Ready to Change Quickly and Enjoy it AgainThey Keep Moving The Cheese
The Handwriting on the Wall