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Dot allows you to invest in a property without the hassle of a traditional mortgage

Dot, a new start-up in the UK today, aims to facilitate real estate investment without having to borrow a traditional "buy to let" mortgage. The company is founded by Gray Stern, who previously co-founded London-based Landbay's Buy to Let mortgage lender, and therefore knows at least one or two things about investing in real estate. Namely, that it does not have to be as arduous as it is right now.

In fact, the main title of Dot is that it makes the property a business in one click via the "point button" that it wants to embed on the real estate listing sites, including real estate agents and real estate developers. Under the hood of the offer is what the startup describes as a "point-of-sale management and finance solution" that can be wrapped around any property that meets Dot's loan criteria.

If you want to buy the property as an investment, you simply click the button, pay the required deposit, and Dot will acquire and manage the property on your behalf, advancing 70% of the purchase price in the form from his pre approved or "instant mortgage". In addition, the property is furnished and Dot takes buildings, contents and insurance guarantee of rent. After these expenses, you receive a monthly rent from the building, less the management fees and interest paid on your Dot mortgage.

Technically, once the property is bought, it is moved to a passive investment structure: an SPV known as the "Dot Container". This structure holds the asset on your behalf (you effectively become the owner / shareholder beneficiary of the SPV).

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When you're ready to sell, in theory a Dot Container can move from one owner to another without a transfer of ownership, and can be refinanced without the need for new mortgage documents (via Dot Platform, Mortgage Market). Dowry). Alternatively, the property can be placed on the open market. Either way, as the sole shareholder of the SPV, you benefit from an increase in the valuation of the property, minus the balance of the mortgage.

"Dot allows any holder of a 30% deposit to become a professional real estate investor instantly, without having to worry about being a homeowner," Stern explains. "We do this by providing real estate agents and property developers in the United States and the United States with a pre-approved financing and management solution – a point container – that can contain any suitable property. The agent can then offer Dot as a payment option (via the built-in point button), turning his previously static lists into turnkey investments that no matter who, no matter what. where, can buy online on a fully funded and managed basis.

"Each point container comes with a pre-approved mortgage, insurance, legal transfer, tax compliance and reporting, leasing and management, furnishings and whatever is needed to transform this property in a search rental house. Dot supports the entire end-to-end process … and because we lend a large portion of the total cost, we have a direct interest in managing your property well. "

Stern says that Dot differs from crowdfunding-type platforms, such as Property Partner or Bricklane, which usually allow you to buy shares in a part of a property or a wallet real estate and are not associated with a financing option.

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"Dot's solution is for individual investors or couples looking to build real estate portfolios that they control, we do not offer co-ownership," he adds. "Our clients own the assets and, although they give Dot management rights, they can also withdraw Dot at any time, sell at any time, refinance their loans at any time. Dot's challenge is to make our offer compelling enough that she does not want to do it. "

Meanwhile, Dot raised $ 1.5 million in a pre-launch round of Stage Dot O, a LA-based venture construction company led by Devin Wade, co-founder of Roofstock and Mike Self , hedge fund manager.