For Real Estate Borrowers

Most real estate borrowers seek bank financing as their top choice but since the 08 crisis, banks have had increasingly more rigid requirements and the types and number of projects they can take on have been impacted significantly.

For example, banks typically operate inefficiently. They can have very high overhead costs when it comes to conducting due diligence and onboarding with a project. If a project does not reach a certain size (e.g. >$100mn), it simply does not make sense for a bank to engage. As a result, there are projects that are equally good in terms of specs such as existence of collateral, LTV, DSCR, loan term but just they do not get access to bank financing as they are too small.

Banks attract deposits from retail customers in order to have capital that they can lend out. This puts a limit on how much liquidity they have to offer to borrowers. As a result, banks’ capacities are often satiated by the biggest local developers (e.g. the top 50-100 developers take up more than 30% of the market share), leaving the smaller players underserved or even unserved. They then have to seek financing from private lenders such as real estate private equity funds (PEs), who charge higher interest rates and often have incentives to vote out the developer and seize control of the RE projects to maximize their own return on investments.

This is where Robinland comes in, we provide real estate borrowers faster and cheaper financing powered by DeFi lenders.

Cheaper

Unlike banks who have to pay interest on deposits, DeFi lenders are more similar to central banks who mint/print stablecoin out of thin air (based on their collaterals or algorithms). As a result, DeFi lenders can offer interest rates that are even lower than what banks can offer.

Faster

If and when approved, Robinland will have a revolving credit line from DeFi lenders such as Maker, which is like a ‘credit card’ that we can draw from without further steps of approval. This means when we make decisions to onboard a project, our process can be much faster than that of banks or real estate PEs.

Good to know: depending on the product you're building, it can be useful to explicitly document use cases. Got a product that can be used by a bunch of people in different ways? Maybe consider splitting it out!