Photo - RealKey
38042

RealKey

Automated Mortgage Processing SaaS Platform

USA, California
Market: Real estate, Financial services, Another
Stage of the project: Operating business

Date of last change: 07.10.2022
Show contacts
5
equalizer from 2000
help
Calculated and estimated occupancy of the project (more about ratings)
My rating
1
2
3
4
5
6
7
8
9
10
Average rating:
 

Idea

Loan Processing/Underwriting Automation Platform Utilizing AI/Machine Learning and APIs/OCR to collect/review data/documents for all parties involved in approving and funding a home loan transaction.

Current Status

• Launched in October 2021, 360%+ TTM Growth since then.
• Currently at $3.265mm+ ARR.

Market

There are 650k active Mortgage Loan Originators (MLOs) in the US (+25% supporting staff) and ~10mm transactions processed yearly over the past decade. RealKey will evolve to support other participants in the ecosystem, such as real estate agents, insurance, and title/escrow. RealKey is solving for the most complex loan consumers can obtain. RealKey will expand to support student/auto/personal loans, as well as wealth management/financial planning, and eventually plans to go consumer direct.

Problem or Opportunity

Today, lenders receive unsupported and incomplete applications through Points of Sale or by phone from borrowers. The MLO runs that data through Automated Underwriting Systems to get worthless feedback and request basic documentation (often the same documents twice), resulting in tons of back and forth with underwriting. Their internal systems provide no facilitation on what to gather and when. These gaps lead to drastic reductions in NPS scores.

Solution (product or service)

RealKey brings all professionals and consumers involved in buying a house and getting a mortgage into a single unified portal, so that all documentation and communication are in a single secure place. Documentation and info gathering is automated through integrations like Intuit and Mint to help users buy a house and get a mortgage in less than half the time, while professionals continue utilizing the same internal systems they are familiar with.

Competitors

RealKey fills the gaps of current industry systems: LOS (Ellie Mae, Calyx), POS (Blend, Rocket Mortgage). Digital Validators (FormFree, Promontech), and current manual processes. RealKey is the only platform taking a documents first approach to automate processing and underwriting to get all the right documents upfront through integrations, OCR, and automated rules/algorithms to facilitate documentation collection and review. Making all potential suitors.

Advantages or differentiators

RealKey has a durable advantage. Our CEO's background as the top Mortgage Originator in the US has been built into the logic of the system to help qualify more people through a unique decision tree and streamline interaction with all parties. UI designed by the former TurboTax Design Lead are patented and proven to decrease churn and improve adoption. RealKey is the only company unifying all parties into a centralized and neutral platform. Key endorsements further our advantage.

In Summary:
1st Mover Advantage, Strategic Investors/Endorsements, Network Effect, Improved Efficiency Over Time, Increasing Cost to Switch Over Time, Filling Gaps in Current Products, Unparalleled Domain Knowledge w/ World Class Leadership Team

Finance

RealKey currently charges a monthly fee of $99/Mortgage professional (sales, processing, underwriting, and management). Future features allow for a $35-70/transaction fee to mortgage loan originators. The average MLO closes 36 transactions/year. Tiered pricing entices enterprise clients to add more users, and a discount is provided to powers users. Fees are charged for integrations (Title/Escrow, Insurance, etc.), as well as pay per click for leadgen to these parties. Future evolution includes leadgen for untethered consumers.
3-Year Revenue Forecast:
2019: $1,659,604
2020: $7,692,026
2021: $40,012,019

Business model

RealKey currently charges a monthly fee of $99/Mortgage professional (sales, processing, underwriting, and management). Future features allow for a $35-70/transaction fee to mortgage loan originators. The average MLO closes 36 transactions/year. Tiered pricing entices enterprise clients to add more users, and a discount is provided to powers users. Fees are charged for integrations (Title/Escrow, Insurance, etc.), as well as pay per click for leadgen to these parties. Future evolution includes leadgen for untethered consumers.

Money will be spent on

Development/Design - 40%
Marketing/Business Development - 35%
Legal/Operations - 15%

Offer for investor

$25k min. Investment
Convertible Note: $7mm Pre-Money, 3% Interest, 20% Discount, 2 Year Term
or SAFE Note: $7mm Cap
Investors Preference

Team or Management

Risks

Maintaining company culture, losing focus or improper prioritization of resources for features our clients don't want, external or internal hacks (security), or lack of capital.

Incubation/Acceleration programs accomplishment

Batchery - Completed 2016
NAR REach - Completed 2018
Mass Challenge - Completed 2020 (Won 1st Prize - $100k Diamond)
Flagstar Bank Accelerator - Completed 2021

Won the competition and other awards

• Flagstar Accelerator Inductee (5th Largest Mortgage Lender in US)
• NAR REach/Second Century Ventures 2018 Graduate (included $100k investment)
• Realogy FWD Tech Summit Finalist (2018)
• Inman Innovator Award Finalist 2018 (Most Innovative Company)
• Digital Mortgage Conference Best in Show
• Banking Disrupted Summit Winner (Most Disruptive Fintech Company)

Invention/Patent

Patents filed Globally for Interfaces, LiveSync Feature, Decision Tree, and BizModel

Photos

Photo 1 - Automated Mortgage Processing SaaS Platform

Product Video

5,00
1
2
3
4
5
1 voice
Sign in/Sign up
arrow_back
EN
more_horiz
close
visibility1991
star0
Add to favorites
Delete from favorites
share
close
thumb_up0
Like
Unlike
Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video