GPARENCY launches first products under new direct-to-borrower platform

GPARENCY has rolled out the first products under its new direct-to-borrower platform, launching programs that will provide two paths for users to self-direct their borrowing with banks and other commercial real estate lenders.

The move comes after Ira Zlotowitz opened GPARENCY’s doors in December with plans to bring borrowers directly to lenders for a flat fee and providing additional support as needed on an hourly basis. The model is more like what attorneys and accountants do rather the traditional mortgage banking services Zlotowitz performed at Eastern Union, the company he founded more than 20 years ago.

There are two levels to the new product, with Zlotowitz telling Real Estate Capital USA that GPARENCY is designed for borrowers seeking both debt and equity.

With one option, borrowers can access Self-Direct for a flat fee of $3,500. “This program will give someone a broker experience for a flat fee from start to finish and the only caveat that makes it different from an actual broker experience is that it is all via email. You’ll self-direct your mortgage and you’ll have the access to funding coordinator from start to finish,” Zlotowitz said.

And with the second option, Borrow Our Expertise, the company is offering a full brokerage experience with a maximum fee of $20,000. “We are revolutionizing at the roots the common denominators between the two because you’re paying for time,” Zlotowitz added.

Borrowers who want to use the platforms can sign up on the firm’s website and will receive a virtual funding coordinator who will work with the borrower from day one. The products are in the beta launch period right now, with Zlotowitz anticipating they will be up and running within 60 days. “If someone is used to going direct to a lender, this is an upgrade for $3,500. But if you want the full experience, you’re paying for the dedicated person available to you,” he continued.

GPARENCY raised $15 million of venture capital from more than 125 real estate professionals. The offering was oversubscribed, with Zlotowitz noting the company’s philosophy allows borrowers to customize their experience and pay substantially lower fees than with a traditional broker experience. Typically, fees are at about 1 percent for a traditional broker experience but work on a sliding scale.

“We give you a way to access what you want to access and eventually, we will be moving toward a membership process,” Zlotowitz said. “A membership program also allows a company to staff their company in both good times and bad. It will allow the company to keep solid, stable people in both good times and bad.”

The company signed up three clients in December, with Zlotowitz anticipating the business will gain momentum as more borrowers learn about the process. Prior to forming GPARENCY, Zlotowitz helped to grow Meridian Capital Group’s business from $300 million to $2 billion annually and oversaw Eastern Union’s expansion to $5 billion of transaction volume each year.