GPARENCY Tempts Buyers Seeking Mortgages With Fixed Fee Brokerage
Brokerage moves from commission-based work.
Commercial mortgage brokerage GPARENCY has moved its business from a traditional go-between to connect borrowers and lenders to a membership mechanism with flat-fee pricing. Now, it’s adding what it calls “match to lender,” a software system that allows CRE borrowers “to search by loan and property type to access every single loan lender in their state.”
Until June 30, all borrowers will be able to use the system for free. Afterward, non-member borrowers will only see lenders that are GPARENCY partners. Members will still see the full listings.
In essence, the company shifts from a traditional brokerage to a flat-fee marketplace. “GPARENCY offers borrowers the ability to close their own mortgage deal, for no more than $16,000, regardless of deal-size,” the release said. “Lending partners get total access to qualified deal flow for only $5,000 a year.”
The company claims to have more than 3,000 industry contacts. That is not the same as the number of member lenders. It also isn’t clear whether member borrowers might be able to look at lenders outside of their states.
An announcement earlier this month was for a service the company calls “market the deal.” Those looking for a mortgage can post their deal, which will be visible to their member lenders, which can then contact the borrowers. During the trial period, anyone can post a deal for three days. Members can have theirs up for a week.
“Borrowers can use us as a subscription service, complete deal solution, or select ‘a la carte,’ only the components they need help with,” CEO Ira Zlotowitz said in prepared remarks.
According to startup information site Crunchbase, GPARENCY LLC has a $14.8 million seed round in November 2021. A search on the State of New Jersey business name search, there is no company listed under that name. However, there is a listing for a company of that name registered in Delaware with an incorporation date of October 18, 2021.
In February, the company announced what it called Manifest, an “open access rolodex” which “displays the contact information of over 3,600 strategic lending and equity institutions.”