GreenSky Credit has been making waves as one of the most successful fintech startups in recent years. The company has expanded to include more than 17,000 retailers selling its loans and more than $5 billion per year in loan originations. And the company just keeps on growing. GreenSky Credit has now expanded into a number of new markets, including out-patient surgical procedures, aluminum siding and even dentist offices.
Home remodeling still forms core business
But the core of the GreenSky Credit enterprise has always been home remodeling. Specifically, GreenSky Credit is the first company in history to offer a form of instantly approved bridge financing for consumers at the retail level.
This is such an important leap forward for those looking to do high-end home renovations that it is almost hard to believe that it didn’t exist prior to 2006. And it is driven by one immutable truth of the real estate business: Construction is expensive.
One of the most challenging aspects of real estate development at the commercial level has always been the financing of major projects. Cost overruns and cash shortfalls are just part of the game in the real estate development field. That’s why commercial developers have access to sophisticated and flexible bridge financing options that can allow them to push projects through when the financing gets tough. Without bridge financing, a huge number of major real estate projects simply wouldn’t ever get done.
GreenSky Credit saw the same kinds of opportunities, albeit at a much smaller scale, that existed within the consumer home renovation market. At their core, home renovation projects share many features of commercial real estate development, especially the fact that most high-end home renovation projects are expected to add more value to the home than they cost. All of this meant that a consumer-facing bridge financing capability would make a ton of sense.
And the last 13 years have shown that it does make sense. GreenSky Credit continues to grow at a phenomenal pace. David Zalik, the company’s founder, believes that the firm will be doing more than $20 billion per year in new loan origination by the year 2020.
he launch of Kerrisdale Capital Management hedge fund in 2009 by Sahm Adrangi marked a major milestone in the money world. The firm’s headquarters are currently based in New York. At 33 years of age, Adrangi is one of the few young men to rise above the norms and appear on the short seller betting, against stocks in the market. In 2017, Kerrisdale gained 20 percent of the possible 22. In a recent question and answer platform with Worth”, Sahm Adrangi revealed that things are working in favor of short sellers. This is after a significant market swoon back in February.
Sahm Adrangi’s major breakthrough in the short-selling sector was in 2011 when he successfully listed various Chinese companies, declaring them as frauds. Following this success, he has effectively used his skills in many companies including the Dish Network and Globalstar among others. During the bull market period, Adrangi heavily relied on his fund. However, his current pursuit focuses on Eastman Kodak, with plans for providing services in blockchain for the protection of photographers against infringement on copyrights. Nevertheless, his stock is gradually reducing from the initial 55% in February.
According to Sahm Adrangi, one requires the right ideas to succeed in short selling, especially if the market is stable as seen in the past seven to eight years. Correct ideas reduce the chances of making disastrous losses in the market. Adrangi also cites that short activism is not always a good way of making money in short selling. Short activists short stocks and go public to share their views and research, as well as the possible merits. The idea of short selling involves leveraging the companies‘ credibility; which triggers market attention.
He continues to insist that his hedge fund research firm is active in short selling despite the current situation in the market. He notes that last year was marked with great losses as a result of ruined shorts. Nonetheless, the situation bound to change with the increasing demand for short-seller hedge funds.
Sahm Adrangi traces his background from Tehran in Iran. Consequently, he spent the better part of his childhood and youth in Vancouver, Canada. Adrangi is a graduate of the Yale University.