Propy taps $100M debt to automate real estate closings

Miami-based Propy secures a $100M credit facility to scale AI-led title & escrow automation cutting friction, paperwork, and closing costs across the US.

Propy raises $100M debt to automate real estate closings

Miami-based proptech Propy has secured a $100 million credit facility to scale an AI-driven, end-to-end approach to U.S. real estate closings. This move pairs automation (AI agents + workflow upgrades) with a consolidation strategy aimed at modernising the fragmented title and escrow industry.​

Why closings still feel slow and expensive

Buying a home in the U.S. can involve transaction costs that approach 10% of a home’s value, driven by a process where many parties coordinate across manual, fragmented workflows. When paperwork, reviews, and approvals move sequentially through multiple intermediaries, fees and closing costs can sometimes end up higher than the buyer’s down payment.

From Global Martech Alliance’s perspective, this is a classic “workflow tax” problem: the end customer experiences friction, while operational teams absorb hidden costs in coordination, rework, and exception-handling. The real issue isn’t just the number of forms—it’s that the system depends on humans acting as routers, validators, and status-updaters across email threads, bank checks, lender requests, and HOA requirements. In most industries, that layer has been redesigned with software; in real estate closings, it has largely persisted because the process is regulated, locally variable, and historically “good enough” to keep transactions moving.

That’s why AI agents are suddenly interesting here—not as a shiny add-on, but as a way to operationalise tasks that are repetitive, time-sensitive, and rules-heavy. Propy says its AI agent already performs functions commonly handled by escrow officers, such as opening transactions 24/7, checking emails, checking bank accounts, and making calls to lenders and homeowners’ associations. If an agent can take on those coordination tasks reliably, the closing timeline can compress, and the cost structure can shift away from manual labour and handoffs.​

The $100M facility: what Propy and Metropolitan announced

Propy announced it has secured a $100 million credit facility from Metropolitan Partners Group, positioning the financing as fuel for an AI-led roll-up of title and escrow companies. Propy describes itself as a tech company using AI and blockchain to automate real estate closings, and says the goal is to consolidate title and escrow firms into an AI-powered, end-to-end closing platform.​

Metropolitan Partners Group is described in the same announcement as a private investment firm that provides growth and situational capital to small and mid-sized non-sponsored businesses in the U.S. Metropolitan also states it is a New York–based private investment firm founded in 2008 that provides non-controlling growth capital to non-sponsored, entrepreneur-led businesses in the U.S., designed to preserve ownership and honour the management team’s vision.

The press release frames the deal as responding to two forces at once: the pressure to reduce housing affordability barriers and the arrival of AI that is reliable enough for enterprise operations. In that framing, the closing process is one of the “overlooked barriers” to homeownership, and Propy’s strategy is to attack the friction embedded in each transaction.​

How Propy is bringing AI into the closing workflow

Propy is led by founder and CEO Natalia Karayaneva and operates licensed title and escrow operations powered by AI and smart contracts, according to the company’s announcement. Propy says its platform automates the full closing journey—from offer to deed recording—so transactions can happen 24/7 with fewer intermediaries, less paperwork, and higher security.​

The operational claim here matters: Propy is not positioning AI as a “copilot for paperwork,” but as an execution layer that can initiate and manage steps continuously. In Propy’s description, the AI agent performs practical tasks like monitoring and responding to emails, validating financial status checks, and coordinating required communications with lenders and HOAs.​

Propy also emphasises that blockchain sits in the background as infrastructure—used to strengthen auditability and settlement security while the day-to-day workflow becomes more automated. In other words, the customer-facing promise is speed and simplicity, while the back-office promise is traceability and risk reduction through better system records and controls.​

The company says that since 2021 it has processed more than $5 billion in transactions and that transaction volume has roughly doubled year-over-year. Propy also states it is aiming to add approximately $100 million in annual revenue through continued consolidation.​

From a martech and operations lens, the most notable part is the product direction: multi-agent orchestration. Propy’s CEO argues that coordinating multiple specialised AI agents could make transactions so smooth and low-friction that a much higher number of homes would change hands annually compared with today’s typical range of 4–7 million. Whether that macro forecast proves out, it signals how Propy sees the opportunity: not just saving minutes in a closing, but changing the liquidity of housing by lowering the “activation energy” required to buy and sell.​

The roll-up play: acquire title & escrow firms, then upgrade them

Propy says the new financing will be used to consolidate title and escrow companies into its AI-driven closing platform. The company states it plans to acquire title and escrow firms generating $5 million to $20 million in annual revenue, with an initial focus on states including California, Texas, and Tennessee, while keeping local teams in place.​

After acquisition, Propy says these firms are upgraded with automated workflows that can reduce manual work by up to 70%, while blockchain is used in the background to improve auditability and settlement security. Propy also says interest in its roll-up strategy is strong, noting it completed a second acquisition valued at $5 million, signed a letter of intent for another $6 million deal, and has roughly $75 million in its active pipeline.​

Metropolitan’s role is also described as structurally tied to the nature of the underlying businesses. The announcement says Metropolitan structured the facility around licensed, cash-flowing title businesses, with the financing aimed at funding operational transformation with built-in downside protection. A Metropolitan executive, Paul Lisiak (Managing Partner and CIO), is quoted in the announcement praising Propy’s approach to improving closings with next-generation AI tools and describing the goal of simpler, faster, more cost-effective transactions for consumers.​

There’s a strategic reason this roll-up model fits the moment. Real estate “closing capacity” is not only a software question; it’s also about licensed operations, local rules, and experienced teams who know how to resolve exceptions. Propy’s approach suggests a hybrid: keep local operators for domain depth, while standardising the workflow layer so every office runs on the same automation backbone.​

In martech terms, think of it like acquiring regional agencies or commerce operators and migrating them onto a single operating system—shared playbooks, shared data, consistent QA, and automation that scales across locations. The competitive advantage isn’t only the AI model; it’s the repeatability of implementation: how quickly you can convert each acquired firm to the platform, reduce rework, and increase throughput without degrading compliance or customer experience.

Martech takeaways: what this signals for AI agents in regulated workflows

Propy’s announcement is worth watching beyond proptech because it shows where “agentic automation” is heading in heavily regulated, document-driven industries. The company is effectively arguing that AI agents can take ownership of process orchestration—initiating tasks, tracking dependencies, escalating exceptions, and keeping every stakeholder aligned—rather than simply drafting text or summarising documents.​

For marketing and growth leaders, the ripple effects could be meaningful if the operating model works at scale. When the back office becomes faster and more predictable, it can change the economics of customer acquisition and retention: fewer dropped deals, fewer “status anxiety” support tickets, and clearer timelines that improve trust. Propy’s stated goal is to reduce friction in closings—positioning closing friction as a barrier to homeownership and a cost centre ripe for redesign.​

For operations and data teams evaluating similar “AI agent + workflow” transformations, here’s a practical checklist inspired by what Propy is trying to do:

• Define the real unit of automation: Propy highlights specific escrow-like tasks (open transactions 24/7, check emails, check bank accounts, call lenders/HOAs), which is more actionable than vague “AI transformation” claims.​
• Treat integration as the product: the closing process spans lenders, HOAs, title, escrow, and recording steps, and Propy’s value proposition is end-to-end automation rather than isolated tools.​
• Build auditability into the workflow: Propy positions blockchain as supporting infrastructure for auditability and settlement security, which is crucial when automation touches regulated steps.​
• Scale through operating leverage: Propy’s roll-up thesis depends on converting acquired firms to automated workflows that cut manual work, which is how the model aims to expand margins and increase volume.​

Finally, the funding choice itself is a signal. Propy chose a credit facility—rather than purely equity—to accelerate acquisitions and operational upgrades while continuing to consolidate. And Metropolitan’s positioning—non-controlling growth capital for entrepreneur-led, non-sponsored businesses designed to preserve ownership—aligns with that strategy on paper.

If Propy can consistently integrate acquisitions, standardise workflows, and maintain compliance while cutting manual effort, it will offer a real-world case study for what “AI-enabled operations” looks like when the stakes are high and the processes are messy. Propy is framing its ambition as building infrastructure that makes real estate operate more like modern financial markets—more automated and more liquid.​