Lev Capital isn't doing anything particularly new in the online commercial real estate (CRE) financing space, but it's apparently doing its job better by focusing not merely on getting financing for CRE investors but getting them the best financing for their needs, and fast.
What makes us suspect this might be true? This two-year-old start-up recently received $30 million in a Series A funding round, just four months after raising $10 million in seed funding -- one the largest amounts raised in the CRE financing space. This indicates Lev might be onto something.
Lev is currently the leading online commercial real estate financing transaction platform, according to, well, Lev. But the company did just raise a significant amount of money from investors such as Greenspring Associates, First American Financial, NFX, Canaan Partners, JLL Spark, Animo Ventures, and Ludlow Ventures.
Lev plans to use the funds to hire more commercial real estate finance experts to work at its New York City headquarters, as well as increasing staff in Miami and Los Angeles and adding remote positions. Investment money will also be used for product development and to expand services offered.
How CRE investors can use Lev
CRE investors who use Lev have access to its expert team and proprietary technology -- this is how the start-up finds the right lender for each particular deal. Lev also analyzes deals, negotiates the best terms, closes transactions, and services loans.
With more than 5,000 lenders on its technology platform, Lev uses tech to match the best lender to each investor, earning its money by taking 1% of each loan amount.
What investors want to know
Lev stands out as being a modern, high-tech firm that uses the latest technology to maximize workflow in an industry that's largely outdated when it comes to technology -- many commercial real estate financing firms still use a manual, paper-based system.
By automating workflows and putting data points (hundreds of millions of them) into advanced machine-learning software, Lev has positioned itself to handle especially complex deals. The tech it uses ensures accuracy, particularly when it comes to interest rates and total amortization, according to founder Yaakov Zar. Lev also can close faster -- in as few as seven days as opposed to the industry standard of up to 90 days.
The Millionacres bottom line
Lev closed about $100 million in loans in 2020, its first year in business, and is projected to close over $1 billion this year. Commercial real estate investors might want to check out Lev for financing options.