Backflip, an all-in-one fintech platform for real estate entrepreneurs, announced that it has raised two private credit funds totaling $30 million of equity along with $154 million of asset-backed financing. This equates to $184 million in capital to fund residential transition loans (also known as RTL).
Backflip has grown its trailing 12-month origination volume 3x year-over-year to a $375 million run rate despite housing market headwinds, with members analyzing an average of $10 billion in properties monthly on the Backflip app.
Backflip is driving the future of real estate entrepreneurship through an end-to-end platform serving a like-minded community. And the company’s purpose-built technology and capital solutions enable members to efficiently manage their investment pipelines, secure financing, and grow their real estate investment business.
This capital raise enables Backflip to continue scaling its loan product offerings to members. And the funding consists of a $20 million joint venture with ECMC and a $10 million Backflip-managed private credit fund. Performance Trust arranged a $100 million warehouse line and Setpoint is providing a $54 million credit facility.
The announcement comes when sophisticated investors demonstrate a strong appetite for the RTL asset class as they recognize the attractive risk-adjusted returns. And the emergence of Morningstar’s investment-grade ratings on RTL securitizations earlier this year has catalyzed an unprecedented influx of institutional investors to the sector. There were $4 billion of RTL securitizations in the first half of 2024 alone, representing a 546% increase compared to the first half of 2023.
KEY QUOTES:
“Raising these private credit vehicles and the warehouse facilities allows Backflip to offer ever-improving capital products to our members doing the important work of rejuvenating obsolete homes. We are grateful for the trust and support of our capital partners, and are excited to be on the front lines of a rapidly-institutionalizing investment asset class.”
- Backflip Co-Founder and COO Jake Rome
“We are excited to deepen our relationship with the Backflip team and have been big fans of their mission from the onset. There is a clear market need to support local real estate entrepreneurs with technology and capital products – Setpoint is enthused about partnering with Backflip and contributing to the solution.”
- Michael Lam, Co-Founder and CIO of Setpoint
