Residential sale leaseback platform EasyKnock has announced plans to expand into new markets after it closed a $3.5 million seed financing.
With another $100 million in new debt financing, the company plans to increase real estate closings through its platform and fuel customer growth.
With this round, EasyKnock will partner with mortgage companies to pay a referral fee for their rejected customers. The company is also looking to scale transactions by designing an AI-driven qualification and underwriting engine to identify target customers. The company will also use data to extract new value opportunities for customers and grow its advocacy base.
Seed investors included Montage Ventures, Crestar Partners, and Blumberg Capital.
“There is an explosion in single-family rentals in the United States and a huge hole for homeowners unable to release equity out of their home,” EasyKnock co-founder and CEO Jarred Kessler said. “The addressable market for ‘Sell & Stay’ is $2.6 trillion, and this round of funding will enable us to expand our footprint and provide homeowners the flexible options they need.”
Through its sell-and-stay method, EasyKnock allows homeowners to sell their property while remaining in the residence as a rental property. Customers can regain ownership of their property given the program’s short- and long-term lease periods and repurchase options.
The company raised $1.2 million in seed funding in 2017, which it used to expand its team and refine product-market fit. The company is projected to hit profitability in 2019.