NYC attorney launches virtual closing startup

Sellers pay flat $350 fee on InstaClosing

New York /
Nov.November 17, 2020 03:30 PM

Peter Zinkovetsky (Photo via Zinkovetsky Law Firm)

Real estate attorney Peter Zinkovetsky has attended thousands of closings over the past decade. But, convinced there is a better way to finalize deals, he’s now launching a startup that makes the process virtual.

His company, InstaClosing, bills itself as an alternative to laborious, document-heavy closings that are currently the norm in residential real estate. Its services are being marketed directly to consumers, with a flat fee of $350 per closing. Typically, buyers and sellers pay several thousand dollars each.

“You go for something as simple as the transfer of title for the property, and all of a sudden you’re back in the 1970s,” said Zinkovetsky, who runs his own private law practice. “The only piece of technology being used at the closing was a copier.”

Since the onset of the pandemic, he added, in-person closings are also a “borderline health hazard.”

Zinkovetsky said he began working on the concept for InstaClosing three years ago. The company uses AI and an automated, 23-step due diligence process, which allows it to execute closings at a lower cost. When InstaClosing is hired by a seller, it conducts due diligence prior to any seller making an offer; that expedites the whole process. The firm stands by its inspections by currently offering a $30,000 post-closing property condition guarantee.

Zinkovetsky said ultimately InstaClosing will sell ads on the platform for an additional revenue stream, but right now he’s focused on proving the product works. 

Over the past few months, demand for digital transactions has surged. 

Last week, online lender Better.com raised $200 million at a $4 billion valuation and the company is rumored to be eyeing an IPO sometime next year. 

Startups like States Title and Spruce have raised hundreds of millions of dollars from investors to digitize the title industry. And on the mortgage front, two former Zillow executives raised $40 million last month to launch Tomo, a fintech startup looking to streamline mortgages and real estate transactions. This past summer, Notarize raised $35 million after experiencing a 400 percent increase in demand for digital notarizations

Zinkovestsky acknowledged that InstaClosing is not ideal for complex transactions, including estate sales, litigation or foreclosures. 

“InstaClosing is not a law firm — it cannot provide legal advice,” he said. “But we can work with attorneys. It doesn’t have to be a substitute; it can be an add-on.”





    Related Articles

    arrow_forward_ios
    Former J. Crew CEO Mickey Drexler and 760 N Walnut Ave, Ketchum (Getty; Realtor)

    Former J. Crew CEO Mickey Drexler sells Idaho estate

    Former J. Crew CEO Mickey Drexler sells Idaho estate
    Singapore (iStock)

    Singapore luxury market rebounds despite fewer foreign buyers

    Singapore luxury market rebounds despite fewer foreign buyers
    (iStock)

    Mortgage requests surge ahead of Thanksgiving

    Mortgage requests surge ahead of Thanksgiving
    Vanke US managing director Kai-yan Lee, RFR’s Aby Rosen and 100 East 53rd Street (Photos via Foster + Partners and Getty)

    Vanke seeks to remove RFR from Midtown condo project

    Vanke seeks to remove RFR from Midtown condo project
    Hippo founders Assaf Wand and Eyal Navon (LinkedIn)

    Home insurance startup Hippo raises $350M

    Home insurance startup Hippo raises $350M
    Prices increased 6.6 percent year-over-year in September (iStock)

    US home prices surged 6.6% in September

    US home prices surged 6.6% in September
    From left: Edison Properties CEO Robert Selsam, Ironstate Development's Michael Barry, Stellar Management founder Larry Gluck (LinkedIn; Gluck Family Foundation)

    These developers could benefit the most from Soho’s rezoning

    These developers could benefit the most from Soho’s rezoning
    176 North 6th Street and 16 South Portland Avenue in Brooklyn (StreetEasy; Google Maps)

    Brooklyn luxury market surges with nearly $73M in contracts

    Brooklyn luxury market surges with nearly $73M in contracts
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...