FlyHomes, a non-traditional real estate brokerage and technology company, has announced plans to begin qualifying customers in-house through a wholly-owned subsidiary, FlyHomes Mortgage, this summer.
The announcement follows of the company’s $17 million series A investment round. The funding was led by Andreessen Horowitz and also included participation by Mark Vadon and Shasta Ventures, among others.
FlyHomes said that it plans to use the funding to increase deployment of its Cash Offers program, fuel hiring, invest in further product development, and drive new market expansion.
FlyHomes turns pre-qualified clients, who have down payments as low as 5%, into cash buyers by purchasing homes, and using cash from its debt facilities, on their behalf. If the seller accepts the offer, FlyHomes closes in less than a week. FlyHomes then transfers ownership to the client once financing has closed – typically around 30 days later.
The client pays for FlyHomes' cost of owning the home, but that cost is often less than the standard commission rebate FlyHomes provides buyers at closing. The service allows clients to present all-cash, fast close offers that are attractive to sellers.
"In today's market, sellers are regularly taking less than the highest offer because an investor has cash, which gives them a competitive advantage over traditional home buyers," FlyHomes CEO and co-founder Stephen Lane said. "We give any buyer that is able and willing to purchase a home an equal footing – our cash, which helps our clients win, but also helps sellers because they don't have to sell their home at a discount to an investor in exchange for certainty."
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