PRIME SERIES
- Janover brings a new search and application platform to the commercial real estate lending market, using technology and artificial intelligence to make the process more human.
- Real estate lending is expected to recover in 2024, after inflation, rising interest rates and persistent vacancies due to persistent work-from home arrangements led to a decade low in 2023.
- Recovery in real estate loan activity or none, frictions in the lending process present obstacles and increase costs for borrowers and frustrate lenders looking for customers.
- The Janover team believes they can democratize the prevailing real estate lending sector with a platform that brings transparency to lender discovery and streamlines applications.
- A recent strategic acquisition of a complementary business and new partnerships are expected to boost growth beginning in the current year.
- Janover stock appears to have gone
unnoticed by investors, leaving an unappreciated opportunity in the fintech
sector.
The real estate
industry is staging for a recovery this year as inflation subsides and interest
rates stabilize. The Mortgage Bankers Association estimates the
industry could experience 19% increase in the dollar value of all real estate loan
volume in 2024 over 2023. Commercial and
multifamily mortgage loans are expected to lead the industry with 29%
year-over-year increase in loan value.
The turnaround
is not likely there will be a complete U-turn to how things were in real estate
lending before the coronavirus pandemic with the attendant inflation and higher
interest rates. Demand for office space
has been profoundly altered, shifting plans and strategies for real estate
projects. Perhaps more importantly, real estate professionals are looking for
change in how they go about their business.
Decision makers of all stripes have grown accustomed to the immediacy and convenience of digital applications. The analog practices of the past are just not good enough for the present-day real estate sector. Technology based on artificial intelligence (AI) is well-suited to industry that requires participants to wade through vast amounts of data. Programs enhanced with AI can efficiently sift through the bits and bytes to streamline property search and analysis, deepen due diligence, fine tune project design or match compatible counterparties.