Alright. This company looking to revolutionize the commercial mortgage
industry. G parents see announcing today it has raised
$15 million dollars in its first funding round. It's
the largest ever seed round in the commercial real estate
space and the company's service will allow landlords and real
estate developers to receive funding directly from banks without the
need for a mortgage broker. The company has not
officially launched just yet, but says its new approach
will give power back to consumers joining us now to
break this all down. Ceo and founder of GPR
NC Ira is a lot of wits. Ira,
thank you so much for joining us. Tell us
more about what G parents offers and how this could
disrupt the commercial real estate industry. So thank you
very much for having me. Um we're starting off
your parents is going to start off as a conventional
mortgage broker, the same services, the human side
priced differently. So someone says, take an analogy
when netflix first opens, used to go into a
store and get the same cd they mailed it to
you here, going to provide the same exact services
price. Like every other professional you use an attorney
, use an accountant, you pay by the hour
. Now the way commercial real estate works, finance
works is typically paid by your percent by the loan
amount, so irrelevant to the size of the deal
. Residents of the work involved in the deal with
complex that you pay by the, by the loan
amount that was the fee you paid. So I'm
gonna start starting first, just as a human over
the course of the next year is taking the technology
that currently we're using internally make it klein facing on
a on a platform to allow banks to market directly
declined and clients to go ahead and do mortgages directly
with the bank without the need for that broken the
process, the the disruption is going to put the
full control in the hands of the borrower to deal
directly with the bank and if and when they need
a human only use a human price like every other
real estate professionals that come in contact with their other
transactions. Ira got to know you served as the
ceo of commercial brokerage company Eastern Union for 21 years
. It's a company that you founded, you left
to found this company. What sort of informed that
decision and how are you bringing that experience to the
forefront of g parents see. So what I saw
over the last 20 years is that More and more
clients got comfortable with technology and data and social media
, be able to deal directly with lenders. And
I saw that little higher, higher percent of going
direct. And currently there's only approximately 20% of commercial
real estate owners. The deal that used commercial mortgage
brokers and the rest of going direct and the fees
have been slipping and Every day another borrower says,
you know I met a banker online, I met
a banker, an event and the scene that shift
go and I made a decision that is the time
to make that move to go and go to the
other side of the equation focused. The people that
are typically going direct provided for them, a better
experience going direct. Used the same value added components
that I've been able to bring as a broker for
the last 21 years closing with hundreds of banks,
billions of dollars a year of business and say hey
to an owner that goes direct, I could provide
you better experience and instead of paying those enormous fees
I can provide them on an hourly basis for when
you need me or subscription basis when you want to
use your team in house to do a deal themselves
. Do you believe that the services that G parents
, the offers will make commercial traditional brokerage companies obsolete
. And if so, how do you think that
that industry needs to pivot? Right, so use
the word brokerage, I think there's two main brokerages
that I get used interchangeably sometimes, but when you
really break down it's totally different. One is the
sales brokerage. I don't believe that the sales brokerage
business is going to become obsolete in commercial real estate
will always be an element that a human will always
be involved. And on a sales broker, they're
creating a value to the table where I do think
if you take similar to Uber, Uber did not
disrupt the car service drivers, They disrupted the car
, service companies used to have a phone number you
called. We needed a car. Now you press
Uber and a car comes well, I think the
difference is going to be with all the technologies and
systems that are out there may be more and more
commercial real estate brokers will not have to work for
a major firm, will be able to more themselves
using different technologies, whether it's a loop net,
whether it's a co star, they own the same
company or whether you talk about different online services to
give the market share and help them expand on the
mortgage side. I think that there's always a percent
of the market always want that intermediary to run their
deal and I call it getting a success a success
feed when they close, they'll get a fee as
opposed to like you pay an attorney a fixed fee
based on the hours and time. So the long
term I see the long term is that you have
a 90 10 90% will be fine paying for using
technology to run the transaction and pay an hourly fee
to get it done 10% bonus success fee where I
think the difference is going to be is that long
term, those mortgage brokers that are focusing on doing
a large deal and getting a fee, you know
on a$10 million deal, getting$100,000 fee and
a million dollars,$100 million deal, getting a
million dollar fee. I think that's going to change
clients are gonna come to the table and say your
professional, Let's stop talking a one. Let's talk
about how much time and effort and value bringing.
You go to a law firm. Top partners in
a law firm are charging 1,800,000 hour, but the
same firm you have associates at 508 100. You
pay for the time and value need. I think
that's going to shift a long term, how people
pay and how people treat that commercial mortgage broker and
value them and be able to decide you know something
. It's not all a none. I'm not gonna
pay a big fee when I close. I only
need steps 13 and five. So interesting. I
hope to have you back soon. That's iras lot
of wits founder and ceo of G parents good to
have you on cheddar news.