Key facts
- Land Gorilla's CEO Sean Faries discussed the complexities of construction lending, which involves underwriting future homes.
- Faries started Land Gorilla after losing his home and business during the financial crisis.
- The company offers a SaaS platform for construction loan management.
- Land Gorilla's platform aims to enhance data and visibility to help the market self-correct faster.
- AI is being integrated into Land Gorilla's tools for productivity and product development.
Sean Faries, founder and CEO of Land Gorilla, shared insights into the construction lending sector on the "Power House" podcast. Faries explained that construction lending differs significantly from traditional real estate financing because it requires underwriting a property that does not yet exist. This process involves evaluating not only financial metrics but also the capabilities of builders, project budgets, inspection schedules, and potential lien risks.
Faries recounted the origin of Land Gorilla, which began in the aftermath of the 2008 financial crisis. After experiencing personal financial loss and struggling to find employment, he started performing draw inspections to make ends meet. This hands-on experience led him to develop a Software-as-a-Service (SaaS) platform for construction loan management, a concept that was not yet mainstream at the time. While many in the industry reduced their exposure to construction lending, Faries remained focused on the sector, gaining a deep understanding of its challenges.