The symbiosis between real estate and finance is increasing with the digital transformation. The movement opened new possibilities for offering credit, insurance and other products within the platforms of buying, selling and leasing properties. The tightening of ties is on the rise, as recent transactions indicate. THE loft bought three fintechs – CrediHome, CredPago and InvestMore – while the Fifth floor acquired another one, the Atta.
Traditional banks are also in the game. O Santander closed this week the purchase of the real estate marketplace Apen11. THE lopes and the Brazil Brokers reinforced bets on subsidiaries that work as fintechs and already account for half of their revenues. And the developer Cyrela is enlarging the CashMe, which offers lines of credit not used by large banks.
“There is a movement of ‘finishing’ of various operations: with companies from various areas offering financial services”, says the President of the Brazilian Association of Fintechs (ABFintechs), Diego Perez. “The idea is that the consumer can buy the good and access the financial product in one place.” In real estate, this interaction makes sense because the relationship involves high-value assets that often require financing.
Fintechs acquired by Loft, for example, offer financing and rental options without guarantor – which complements the main activity of buying, selling and renting.
The Apê11, purchased by Santander, uses data analysis and artificial intelligence to connect sellers to real estate buyers, serving as “bait” for banking products. “The real estate agency works as a customer originator for financial services”, he says Bruno Loreto, partner at Terracotta Ventures, specializing in real estate startups.
Terrecotta is a partner of At home, rival of Loft and QuintoAndar. The group’s next bet will be on a “pure fintech” in the real estate industry. “We are negotiating to enter a home equity company (personal credit with real estate as collateral). We hope to announce it soon,” says Loreto.
Lopes real estate was a pioneer in the financial sector. In 2007, he founded the CrediPronto, partnership with the Itaú for granting real estate credit, which today has a portfolio of R$ 10 billion. Lopes receives commission for each customer sent for financing, in addition to part of the profit generated by the portfolio. Today, 47% of its consolidated revenue comes from CrediPronto. “It’s the apple of the company’s eye”, he says Matheus Fabricio, investor relations director at Lopes.
Brasil Brokers set up a similar operation. In 2017, the company created the subsidiary CrediMorar, which takes over the bureaucracy and leaves everything ready for the property buyer to sign a financing contract with the bank. O Bradesco is the main partner, but Santander and Itaú also participate.
Brasil Brokers earns a commission for a closed contract, which already represents a hefty sum on its balance sheet. CrediMorar generates about R$ 10 million per month in revenue, about half of the real estate’s consolidated revenue.
Cyrela, on the other hand, bet on a completely new operation, without depending on its customers to generate new business. Founded three years ago, CashMe provides loans for real estate businesses with little or no service from banks. This includes, for example, home equity, credit for construction and a line for the acquisition of solar panels.