- 15 hours ago
Beeline Holdings (NASDAQ: BLNE) is a mortgage fintech company that leverages an AI-powered, digital platform to simplify and expedite home loan applications and title services for property buyers and investors. Headquartered in Providence, Rhode Island, Beeline Holdings is transforming the mortgage sector by offering a fully digital experience for accessing property financing. The company was founded in 2019 and operates in the financial sector, specializing in consumer financial services.
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00:00All right. Beeline Holdings CEO, Nick Louisa. Hey, let me ask you, am I getting the name
00:10correct? Am I pronouncing it correctly? It's my user, but you're close enough.
00:14Okay. I'll remember though. I take pride in being able to pronounce names correctly. So if I get
00:18it wrong, I want to be corrected. First of all, thanks for joining us here. Beeline Holdings,
00:24it's technology-driven mortgage lender and title provider building a fully digital AI-powered
00:29platform that simplifies and accelerates the home financing process. This is awesome. This is a
00:35theme that we have been talking about. A lot of the stocks that we've been looking at is like Rocket
00:40Mortgage and UWMV. So I'm just going to start right there. First of all, tell us a little bit about
00:45yourself and your company, but how is your company different than Rocket? What makes BLNE different
00:51from other mortgage lenders? Well, look, this is my fourth company, three successful exits prior to
00:56this one. Very experienced management team. And why are we different? Well, look, we built our brand,
01:01we built our platform, and all of our tools for the generation that grew up with these phones in
01:05their pockets when they're seven, eight, nine years old. There's 75 million millennials out there and 25
01:11millennial, 25 Gen Z right behind them. And these guys, you know, they shop differently than what you
01:17and I do. And so we built our platform for them. And we offer a wider variety of mortgage programs than
01:24those other mortgage lenders do as well. So if you don't qualify for a conventional Freddie Fannie
01:29mortgage, it's game over. As opposed to at Beeline, our AI will direct you to a whole new suite of
01:35products that are more designed for the gig economy. Okay, interesting. So and that really does kind of
01:41separate it from Rocket. I'll be honest with you. I use Rocket myself, full disclosure. I used it for
01:46my refinance. And I'm extremely happy with it. I'm happy with all of the tools there. What would it
01:52take to maybe kind of draw me away from that? How do you plan to capture market share from other
01:59companies? Yeah, well, look, I mean, look, Rocket is the they own 8% of the industry. They are the
02:03premier leader, and they've been around for a long time. So they know what they're doing. And they're very
02:07good at what they do. You know, we're not trying to necessarily take customers away from them. We're just
02:11trying to find our own niche and gain market share ourselves by offering a different platform
02:15that's different than Rocket, right? And so again, it's a seven minute journey. It's very fast.
02:21The AI will make a decision and give you 90% certainty about whether or not you qualify in
02:26seven or eight minutes, 24-7, 365. And our chat bot will answer your questions at any point in time.
02:32I'm not sure exactly what Rocket is doing in terms of, you know, their customer satisfaction. But I know
02:37that we're meeting the mark for our demographic. And I also know, again, if you, you know, if you if
02:43you're not sure you can qualify for a conventional mortgage, you should come to us first, because we're
02:48going to offer you a bank statement loan or a DSCR loan. These loans are more designed for the gig
02:53economy, as opposed to Freddie and conventional mortgages. For example, a bank statement loan doesn't
02:58even look at your income. It doesn't even ask you what your income is. But if you've got lumpy income that
03:03goes up and down or you've got K1 income or, you know, you're not you're probably not going to get
03:08a mortgage, a rock, a mortgage at Rocket Mortgage, whereas we will not even ask the question and look
03:15at your bank statements and probably give you a qualification. Okay, really good explanation
03:19there. Really appreciate that. What do you let me ask you, what do you think about the current
03:22interest rate environment cuts, the cutting cycle that might be upon this? And of course, how is that
03:28beneficial? Well, listen, we're super excited. You know, it's prime time for us. It's,
03:32you know, six o'clock and you've got the greatest run in the world coming down the mountains,
03:35getting ready to ski. And now it's time, right? We've been duking that out in the trenches and
03:40really working very hard with our foot on the gas pedal to wait for this moment. And now the headwinds
03:46are getting ready to turn into tailwinds. And that means very fast revenue growth for a company like
03:51us, extremely fast revenue growth, because the market's going to normalize. And again, we are
03:56addressing the needs of 75 to 100 million younger borrowers who already represent 40% of the market.
04:04And that's only going to continue. So we're quite excited about the interest rate environment. We know
04:10that the market's going to normalize. And we know that I think the August purchase numbers are already
04:15out. And they're very strong compared to what analysts thought. So again, we're getting ready to
04:20get into a good market here. Yeah. And I'll be honest, you know, one of the things that we've
04:24talked about as a group is how the young homebuyers really aren't there. First time homebuyers really
04:29struggling. It'd be great to see some gaps get closed in that. I completely agree with you there.
04:34All right. What do you see as Beeline's biggest near-term catalyst? Start talking a little bit
04:39there about tailwinds. I'd wonder if you can expand on that. What do you think about their near-term
04:43catalyst that could transform the company's profitability? Yeah, but listen, we're already
04:48debt-free. We're going to be cashflow positive in January. We've been working toward that for a
04:53long time. Our heavy spend is behind us. You know, we're ready to start generating revenue.
04:59And oh, by the way, we have partnered with a brand new coin, which has not been released yet.
05:06That information will start coming out toward the mid-end of October. And that's going to allow us
05:11to offer a fractional sale of equity products. So if you have equity in your home and you need liquidity
05:16and you cannot get it, we're going to be able to offer you a product where you can sell a portion
05:21of your home equity. And we will leverage our partner who will mine a coin. And essentially
05:26with our partner, we're bringing the blockchain is meeting the real estate chain on a one-to-one
05:31basis. And that is a new funding source to fund liquidity for people who cannot get liquidity
05:37because they don't have the credit score. They don't have the job. They don't have the income.
05:41If you're a baby boomer and you're looking at a reverse mortgage, this is a much better source
05:45for you. Or if you just don't want monthly payments, if you just don't want to pay a mortgage
05:49and you need some cash, this product is going to be relevant for you. And so for us, this is a,
05:56this is a, this is a, I mean, I don't see any other mortgage lender doing this at the moment.
06:02And so for us, yes, this is going to transform the industry and catapult the small little creative
06:07company that's addressing the needs for this generation, but also with a product that doesn't
06:12exist in the market, uh, as of right now by other mortgage lenders, there are fractional
06:16sale of equity products out there, but not offered through a mortgage lending platforms like us.
06:21Okay. It would be exciting to see if you can become a disruptor in this industry without a doubt.
06:24Now, again, you're, you're, you're, you're doing, you're making my job real easy here. Cause
06:28you're kind of talking about the very next question I wanted to ask you about. You've not some
06:32exciting partnerships and initiatives recently. Can you walk investors through how these
06:36collaborations are going to translate into real revenue growth for Beeline?
06:40Well, look, I mean, our true partnership, we are, we are a constant negotiation with partners.
06:44And I would say that, um, just stay tuned on that. Uh, as far as we do have some partnerships
06:49in place right now, mostly around investment property transactions. But, um, you know, when you
06:54have a platform like we do, and you can give 90% certainty in a seven minute, eight minute journey,
06:59and you can offer a wider variety of products, you're going to get the attention of, um, of partners
07:05that need mortgages. And so we have their attention and we are in discussions and I would just say,
07:10stay tuned on partnerships. I'm not ready to kind of talk just yet about new partnerships. Uh, but,
07:15uh, rest assured we're, we're in discussions. Hey, stay tuned is perfectly acceptable. I appreciate
07:21it. Um, okay. What is your, uh, these are going to be some of the tougher questions I know with, um,
07:25with the investment group that we have here with the traders that we have here, some of this stuff is
07:30on the top of their mind there. What does your capital structure look like today and how confident
07:35are you in your ability to fund growth without diluting shareholders? Well, listen, uh, first of
07:41all, I, I have, I have $16 million in my own money in the company. Our, our CEO just made $100,000
07:47investment CEO of just a $100,000 investment entire accounting team, uh, has made investments in the
07:52company, you know? And so I'm very confident we can cashflow ourselves. We are going to be raising
07:58some money though, because we are a mortgage lender and we have to have a very strong balance
08:02sheet. And that's how you grow your warehouse lines is by cash on the balance sheet. So we'll be
08:07raising some money to put some cash on the balance sheet, but not a lot of money. Um, and you know,
08:12it's value dilution. I can assure you having $16 million in the company, we can be very proactive
08:19at this point, given that we're debt free, given that we're getting ready to be cashflow positive,
08:23given that there's tailwinds and not headwinds. Uh, and we, so we can be proactive about our
08:29fundraising and pick our spots and ensure that we, if there is dilution, there's value dilution.
08:34So the value of the company goes up, even though there, there, there may be a smaller percentage
08:39that you would own as a shareholder. So, um, I'm not sitting here with $16 million, my own company
08:44to dilute myself. I can guarantee you that we're going to be very smart and make very educated decisions
08:50so that our balance sheet looks good. We can offer what we need to offer. And look,
08:54we only have what a 75, $8 million market cap. It's give me a break. I mean, look at the comps
09:00out there and look at what our runway is. It's huge potential. Um, and so I wouldn't be as concerned
09:07about dilution. I would look more about the opportunity and the fact that we're innovative,
09:13we're smart and we're sitting side by side with our shareholders. We don't want dilution either,
09:18but we want to be smart and we're playing chess. We're not playing checkers. Yeah. First of all,
09:23that's a great answer here. Um, if you have your, that's what we love to see from smaller companies
09:27here. We want to see that the executives of that company have their own money tied up.
09:31If your incentive is to drive the stock higher, that works for us as investors. Perfect answer
09:36there. And the other thing about our particular group is that we have seen, I'd like, I think that
09:41you called that a value-based, um, value-based dilution, or what was the term that you just used
09:47there. It's like, wouldn't you rather own 1% of Apple than a hundred percent of some new startup?
09:52You know, it's kind of like, it's like, you know, it's like the value of the company goes up.
09:57Right. As you, as you deploy new, new funds. And if you use those funds properly,
10:02the whole value goes up. So you may own a smaller percentage, but your overall shares in your stock
10:07account are worth more money because the money was used appropriately. And so look, we're not like,
10:13look, there was a time when we were losing a million dollars a month and the headlines were,
10:18why would you ever invest in a mortgage company? It's the worst real estate market in 30 years.
10:24And we kept our foot on the gas pedal and we kept building and building, knowing that the window would
10:29open. And when the window opened, we would be ready for this moment, which is where we are.
10:33So whatever dilution we have right now, it's going to be minimal, uh, compared to the opportunity.
10:38Okay. That's, that's absolutely perfect. And again, we've, we've seen companies, uh,
10:44raise money, um, and then use it appropriately. And we've seen what that can actually lead to.
10:49So really good stuff there. Appreciate that, Nick. Uh, what are your targets for revenue,
10:52EBITDA and cashflow over the next few quarters that investors should be watching?
10:57Well, you know, I can't answer that question, right? Because I looked good. That was a very crafty
11:03way to sneak that in. I got to tell you, this is not your first rodeo and I respect and appreciate that.
11:07I can tell you what, what, what I've said in the past and what our goals are. Right. And so
11:11it's a massive market. Um, the law, the number one lender only has about eight to 9% of the market.
11:18Right. And so just a few basis points is a, is a multi-billion dollar company in this space.
11:23Our goal. And I've stated this before when the market normalizes is to start closing 700 loans a
11:29month, which, which is about a hundred million dollar run rate. I think once the market normalizes,
11:34we can be there in about a, in less than a year. So, and that's just from the mortgage lending
11:38division. So that's a very, very small percentage of the market. And that's addressing the 75 to a
11:46hundred million, um, uh, younger generation out there that we think we're speaking to better.
11:52Uh, we're speaking to faster. We're being more creative and go to our website. Our brand speaks to,
11:58to speaks their language, the way they want to communicate and the way they want to do business.
12:03So I feel like getting to 700 closings and that $100 million run rate mark in with tailwinds and
12:09that headwinds is very achievable in, in the time period I just said. Okay. Okay. Fantastic. I'll get
12:15you out of here on this. First of all, really good stuff here. We really appreciate all of the
12:19transparency and honesty. How do you plan to keep Beeline's technology and offerings ahead of the
12:25curve as the industry evolves? Well, listen, that's a really good question. I don't think I've been asked
12:30that question, uh, in the past. Um, so there's a couple of things. First of all, when you are in the
12:35trenches and you are actually innovative, like you, like we are, this is, again, this is not our first
12:40rodeo. We've built mortgage tech in previous businesses and companies. And when you're in the
12:44trenches, you have a major advantage versus some Silicon Valley come in who thinks they know what
12:49to build and thinks they know what to do. And they come in and we are in the trenches every single day. We're
12:54closing loans every single day. We're speaking to customers every single day. Our product team is
12:59based in Australia and they are excellent. And we have six years in the industry now,
13:04building software, building technology. We know what we need to build. We know where the areas are.
13:09And so we're going to stay ahead of it because we're building tech to drive our business and we
13:14want to gain market share. So our motivation is off the charts to get there. So we're motivated,
13:19we're experienced. And we have the sort of the platform to do it at the same time. So
13:24I think we're going to stay ahead. Okay. Absolutely. Fantastic. Again,
13:28Nick Laiuza, CEO of Beeline Holdings. Folks that are looking for that, that's ticker B-L-N-E.
13:35I really appreciate the time. I really appreciate the interview. And I think what we should do is have
13:39you back and check out how you're doing along the road. Would you be interested in that?
13:44Absolutely, man. I love your channel. You guys are great. I think you're adding a whole
13:49new cutting edge to what needs to happen out there. And so I would absolutely be honored to
13:53come back. Okay. Fantastic. Nick, we will absolutely have you back. Have a great rest
13:58of your week. Good luck with Beeline. This is really, really exciting. I'll tell you something.
14:03You make some big moves getting gig economy workers, first time home buyers and young buyers
14:09into this market. I actually think that's going to be better for everybody in this country. I wish you
14:13the best of luck. Thanks for the time here this morning. Look forward to having you back.
14:17Thank you very much. I appreciate the time today.
14:19Yep. No problem, folks. That is Nick Lausa, CEO from Beeline Holdings. Let me actually grab my
14:25screen here real quick. Here for those, I'm sorry, I might've done a poor job there at the outset
14:31by not mentioning the ticker. I apologize. I take blame for that. Ticker again, B-L-N-E,
14:38Beeline Holdings. Really, really good stuff there. Folks, you know, I'm always going to ask these CEOs
14:43about dilution and all of that. I've got to be honest with you. I thought his answer was perfect
14:47for that. I thought his answer was absolutely perfect for that. I really appreciate that.
14:52We are definitely going to have Nick back. Shout out to Zoltan, too, from our news desk team,
14:56who continues to outdo himself on a regular basis, getting us quality guests in here. Folks,
15:01I don't know if you remember, but we've actually traded B-L-N-E off of the scanner. Whenever I see some
15:07of these small cap companies that are really trying to get something done here, we don't just want to
15:11look at them because they move on a scanner. We actually want to get the low down there. Really
15:15appreciate Nick giving us some of his time here and helping us out with that. Really, really good
15:20stuff. Look to having him back. Appreciate all of the warm things you folks are saying here in the chat.
15:26Really, really good stuff.
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