Automated mortgage processing SaaS platform with a document-centric and network-effect approach, inviting all parties into one portal.
San Francisco, CA, USA
One Liner
One Liner
Automated mortgage processing SaaS platform with a document-centric and network-effect approach, inviting all parties into one portal.
What Problem We are Solving
Problem
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.
About Us
About Us
RealKey automates processing and underwriting of mortgage through a web-based mortgage process facilitator that centralizes and simplifies both documentation collection and review to reduce touches (back and forth) with underwriting by getting documents and data direct from the source through APIs and OCR. RealKey stores all data and documents securely and centrally for all parties to access. Review of data is automated through algorithms coupled with machine learning to improve accuracy overtime. Smart conditioning, centralized chat, and auto-updates to parties facilitates the collection of additional required conditions to get the right documents the first time efficiently, while creating a network effect around RealKey’s platform. Smart stacking creates the "Perfect" submission package to underwriting, which is simple and easy to read, resulting in reduced errors or questioning. Lenders (RealKey’s paying users) benefit from improved efficiency and reduced costs internally, as well as improved customer satisfaction and likelihood of repeat and referral business from their clients. RealKey is a first mover, filling the gaps of current products currently in the marketplace.
Venture Highlights
Highlights
Launched end of July 2021, growing 15-20% MoM
Currently at $2.15mm ARR.
Proven product market fit for both primary users (lenders/brokers) and marketplace (insurance, title/escrow, contractors).
A round will allow us to meet vendor diligence for major contracts including Flagstar Bank, Progressive Insurance, PRMG, and more.
Business Model
Business Model
RealKey currently charges a monthly fee of $99/Mortgage Loan Originator (MLO). 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.
Competitive Advantage
Quote
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.
Revenue
Revenue To Date
$3.7M
MRR
$180K
Revenue YTD
$515K
Burn Rate
$130K
Users
Total Users
1.8K
Total Users (Past 30 Days)
1.8K
Daily Active Users
1.8K
Monthly Active Users
1.8K
Total Paying Users
1.8K
MoM Growth Users
15%
Organic Traffic %
N/A
Customer Costs
CAC
$30.00
LTV
$18.8K
Churn
1%
Margins
95%
Go-To Market Strategy
Business Strategy
Marketing focuses on SMB through digital/social media, PR/content marketing, and live events. Business Development focuses on co-development with Franchises and Non-Bank Lenders (shorter cycles then banks). Strategic endorsements/investments like NAR (National Association of Realtors), Flagstar, and Realogy help with growing awareness and cutting through long sales processes. Past marketing has proven a CAC of ~$20-30 and LTV per user of $18,750.
Team
Competitive Analysis
Competitive Analysys
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.
We are open to meeting up to grab a coffee, or just to chat.
We would really enjoy your feedback and insight into our venture and would be happy to discuss anything that you are currently working on to see if we can be of service!