In our latest real estate tech entrepreneur interview, we’re speaking with Luca Dahlhausen from Realfinity.

Without further ado…

Who are you and what do you do?

My name is Luca Dahlhausen. I am 26 years old and originally from Germany, now making my mark in the US mortgage industry. My journey began when I came to the US in 2018 and quickly found myself working as the right-hand man to the CEO of LendUS, a $9 billion lender. The company’s success led to its sale to CrossCountry Mortgage in 2022. What fascinated me the most in the US was the debt leverage mentality, particularly in the mortgage market – a contrast to the perspectives I grew up with in Germany. The significance of homeownership here captured my attention and interest like nothing else.

During my time at LendUS, I witnessed firsthand the inefficiencies and questionable practices in the industry. It was unbelievable to see the importance of homeownership in the US, yet observe how many Americans lacked essential financial education. I was particularly troubled by Loan Originators exploiting consumer ignorance to impose exorbitant fees on mortgage transactions. This led me to establish Realfinity.

At Realfinity, we’re dedicated to making it easy to offer mortgage services – for any brand. Our vision is to revolutionize the way mortgages are offered, sold, and distributed, ultimately making the transaction process more efficient (as a German, I love efficiency!).

As an enabling infrastructure provider, we support real estate professionals and businesses in offering mortgage services through our easy-to-use loan origination platform coupled with white-glove processing services. Our solution places real estate professionals at the heart of every transaction, enhancing their value proposition by enabling them to own the entire process. This approach not only streamlines transactions but also offers more affordable mortgage rates by eliminating additional customer acquisition costs typically incurred by lenders. Additionally, the platform uniquely allows professionals to maximize their existing homeowner databases, while also serving future homebuyers, thus expanding their service portfolio, enhancing client relationships and creating new revenue streams.

What problem does your product/service solve?

Expanding into mortgage has been challenging for real estate businesses and professionals due to high technological entry barriers and complex regulations.

I’ve seen how traditional partnerships, usually in the form of joint ventures or Marketing Service Agreements, often aren’t effective. Real estate agents tend to avoid joint venture partners due to lack of financial benefits, and MSAs can be compliance risks. This in-depth knowledge of the industry’s shortcomings, along with my understanding of current market challenges causing margin compression for agents, uniquely positions me and my team to revolutionize how mortgage services are provided in the future, for the benefit of agents and homeowners alike.

What’s are you most excited about right now?

I’m currently thrilled about the transformative changes in the real estate industry, particularly the move towards dual-licensing. Regulatory adjustments are now empowering real estate agents to enhance their service offerings, a development highlighted by the increasing permissibility of dual licensing in 45 states. This shift signals a significant industry evolution, allowing agents to serve both as realtors and mortgage originators, especially in FHA transactions, as detailed by the Department of Housing and Urban Development (HUD).

This change, previously restricted with FHA loans, marks a pivotal moment. It not only broadens the scope for agents to offer more comprehensive services but also maintains consumer freedom in choosing lenders. The introduction of dual roles in home purchase transactions by HUD’s Mortgagee Letter 2022-22 lays a crucial foundation for a more integrated and consumer-friendly approach to home buying and financing.

What’s next for you?

Firstly, my goal is to reach a milestone of 100 dual-licensed real estate agents by the end of Q2. This expansion is a significant step in scaling Realfinity’s workforce and enhancing our service offerings. Additionally, I am leading our development team towards upgrading our platform by building our own Point of Sale (POS) system. This development is crucial for me to gain independence from third-party providers. Owning the entire tech stack for the origination of a loan is pivotal, as I am intending to become a top-line heavy employer, who provides the infrastructure for any professional to offer mortgage services.

Once I’ve achieved consistent month-over-month growth, my focus will shift towards fundraising. This will be a new venture for me, opening doors to further opportunities and resources that will fuel Realfinity’s growth and innovation.

What’s a cause you’re passionate about and why?

A cause I’m truly passionate about is financial literacy. It’s astonishing and somewhat disconcerting that such a crucial life skill is scarcely taught in schools. Over the years, I’ve observed how some of my friends, despite being incredibly talented and well-educated in other areas, can struggle with basic financial concepts. This isn’t a reflection of their capabilities but rather an oversight in our educational system. The lack of formal financial education leaves many people ill-equipped to manage their personal finances, navigate investments, or plan for their future. It’s a systemic issue that perpetuates a cycle of financial insecurity and missed opportunities. In my opinion, understanding money management, budgeting, saving, and investing is foundational to personal development and overall societal progress. It’s about enabling informed decisions that can lead to a more secure, less stressful and fulfilling life.

Thanks to Luca for sharing his story. If you’d like to connect, find him on LinkedIn here.

We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop us a line (community @ geekestate dot com).