The outcome of a partnership between Onbe, the US-based corporate disbursements fintech, and Equity Trust, a financial services company that enabes individual investors to diversify investment portfolios using alternative assets, has produced a self-directed individual retirement account (IRA) that hopes to modernise how investors are able to pay real estate expenses.
Expense Pass, a virtual and physical card scheme managed by Onbe on behalf of Equity Trust, aims to do away with the need for traditional checks and automated clearing houses (ACH) when managing property bills, condo and/or utility fees; in an attempt to reduce the time to deliver funds for Equity Trust real estate investors.
The disbursements programme can be applied to a variety of expenses including homeowners association (HOA) fees, utility bills, property taxes, property insurance, property repairs and renovations, or for property-related purchases at retailers.
Real estate investors will be able to use the mobile wallet-backed service to request funds that will then be disbursed via accounts or used to pay third parties like contractors.
“We are excited to offer payment disbursement choices to our self-directed IRA investors that make managing their real estate investments easier,” said Rachel Cain, senior manager, client experience and product at Equity Trust.
Cain explains how the company is partnering with the fintech Onbe to “ensure our real estate investors have access to the funds they need,” funds that could be used to maintain properties or pay associated bills.
Having completed a successful pilot programme, the partnership has now confirmed that they are to extend the programme to investors that hold real estate in an Equity Trust IRA.
Tracy Monson, Onbe’s chief product officer, adds that the programme will “transform how real estate investors access their funds to improve their properties and manage expenses.”
“The programme cuts down the time it takes to access funds from up to a week to a day or two, giving real estate investors faster access to their funds.”
Image and article originally from thefintechtimes.com. Read the original article here.