Daan Reekers on Adelaer Real Architects' innovation in the real estate sector

Daan Reekers on Adelaer Financial Architects' innovation in the real estate sector

“The future cannot be stopped, Fintech is the future!”

More and better financiers available

Amidst a tangle of financing flows, the real estate market is complex, and the need for oversight is greater than ever. Daan Reekers, founder and CCO of Adelaer Financial Architects, anticipated the sector's urgent need and responded by innovating his company with a search engine that provides pan-European oversight of the market in terms of providers.

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In turbulent times, speed and clarity of data are crucial for doing business with new lenders., Daan Reekers kicks off the interview about current developments in the financial market of the real estate sector.

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The CCO of Adelaer Financial Architects – the financial services provider for the real estate market – is outspoken and doesn't mince his words. After the credit crisis and the nationalization of banks, he, as a financial expert, foresaw what was to come for the real estate sector: banks executing the policies of De Nederlandsche Bank (the Dutch Central Bank) and, under strict supervision, handling increasingly fewer real estate financing transactions.

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That has significantly impacted the free market economy. Unfortunately, some of the entrepreneurial spirit has disappeared from the traditional major banks. It created space for alternative financial flows in the market. Riskier than traditional flows. More obscure, too. Crowdfunding and private loans. You simply can't prevent people from lending money to each other. Ultimately, De Nederlandsche Bank has even less oversight of a sector worth tens of billions. Yes, of course, that's a thorn in the side of the regulator.

Innovation in the real estate sector

Daan Reekers's mind operates like a telescope. He launched his company at the end of the credit crisis and, in just seven years, has become the largest debt broker in the Netherlands. He peers into the distant market and, together with his teams, acts with courage to simplify and accelerate financial transactions for his clients.

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He is a big thinker, he openly admits. I had an idea to help the entire real estate sector. To mitigate financial risks and foster entrepreneurship. From there, I envisioned a cooperative bank, made up of real estate professionals who would collectively raise the capital themselves. Wouldn't that be fantastic?! We worked on such a real estate bank for three years. But it proved utterly impossible.

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It's a shame, he says afterward. He shrugs. "Nothing has been in vain. It has made me even more motivated. Over the past few years, we've worked incredibly hard on the growth and relevance of our offices at home and abroad. Innovation is the common thread that drives our progress."

Logical consequence

In a market where Dutch real estate financiers are reluctant to provide financing across all asset classes, a growing shortage is emerging. This shortage amounts to billions of euros, according to Daan Reekers. Digitizing the financing process is one of the solutions. As a debt broker, we're constantly investing in this. For example, we've acquired a platform that can be seen as a kind of Funda for real estate financing. Real estate investors find lenders there, quickly and tailored to the needs of both parties. We do business with 984 financiers across Europe. Our search engine guarantees a perfect match. In 2021, we financed more than five billion euros for the real estate sector this way. We're the only debt broker in the Benelux authorized to use this tool. We're very careful about that.

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Adelaer hasn't been sitting idle during the past few years of the coronavirus pandemic. Daan Reekers' team has expanded the financing search engine with a proprietary Loan Management System. A unique and important addition, he explains.

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With the increasing number of alternative financing streams, lenders want to know even more precisely where they stand. This is a logical consequence of the developments we've seen in the financial world: Dutch banks, which are bound by strict regulations, and new market entrants offering all sorts of things.

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The Loan Management System primarily provides clients with insight and access to financial data. Reports, analyses, and cash flow models provide a relevant real-time overview of the real estate portfolio. He has high expectations for the new tool.

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"It will most likely transform the real estate sector in the second half of 2022 and 2023, because loan management is becoming increasingly important. Perhaps even more important than the actual financing, but many real estate professionals don't know this yet. That will change quickly."

From cigar box to app

What used to be funded from the back of a cigar box is today a world of Search Engine and data analysis, he outlines. “Before owners even think about a new mortgage, they receive the best offer through our software.”

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Where clients used to have to submit document after document, year after year, documents are now stored in a dedicated data room within the software. This is relevant for partners, financiers, and clients. For example, rental agreements are stored, which may or may not be accessible to authorized individuals. For example, an accountant, appraiser, or intermediary. The overview contains annual accounts and statistics. All data in one place. Every authorized user receives a timely notification when it's their turn to perform an action.

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The Loan Management System's intelligence is far-reaching. It's up-to-date and translates to what lenders want to see, as Daan Reekers explains at a brisk pace. What if the property value drops by 25 percent? Or what if operating costs suddenly rise by 30 percent? What if a tenant can no longer pay? Analyses are conducted and conclusions are presented. Often, even before the question arises, an answer is already available.

Digital progress

The CCO is pleased with the innovation that Adelaer offers the real estate sector. I expect much more digitalization in the financial sector in the coming years. We're really only just getting started. If I had to make a popular comparison, I think of Apple and their introduction of the iPhone and iPad. At some point, the majority of customer groups will be convinced. I see it the same way with fintech and the real estate sector. Professionals have sensed the potential of digital progress and are now discovering its possibilities. Things will become simpler and work to their advantage. The automation in the system, the speed, and the business doors it opens.

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It's about professionalism and being bankable now and in the future, he states. Digitizing financial processes is becoming increasingly important every day. Access to data and its quality are more crucial than ever. We live in a wide world with access to money. And unfortunately, there are also players in the market who either lack expertise or don't invest responsibly. That's a risk you, as a real estate professional, want to avoid.

Trustworthy partner

This applies not only to the clients of Adelaer Financial Architects, but also to Adelaer itself. "Aside from our tools, we vet all customers in advance. We want to be and remain that reliable partner. Knowing who you're doing business with is a key aspect in the market. Having no connection to Russia is a very relevant issue right now. But there are other backgrounds and situations like that."

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There is still a long way to go, with many innovations, for the real estate sector, predicts Daan Reekers. When it comes to the digitalization of real estate financing and the professionalism surrounding it, our industry is currently at the iPhone 6 level or something similar. This means we're on our way, but also that there are still plenty of opportunities to be explored. Our Loan Management System is a strong push in the right direction. What are the next steps?, he asks himself, laughing. "We'll definitely be working on that in the coming years. It's an exciting time full of changes."

For more information:

Daan Reekers

T: + 31 881 300 400

M: +31 6 55 105 567

E: daan.reekers@adelaer.nl