Downpayments – a company that provides interest-free down payments for property investors – recently announced the general availability of its services in Florida, in addition to $32.8 million in initial debt funding from Partners for Growth, and equity from Second Century Ventures (backed by the National Association of Realtors). The company will utilize this new funding round to power over $200 million in investment property transactions.
Mortgage rates have jumped up to nearly 8% this year, which has created a difficult environment for those who want to refinance their mortgage to cash out and continue investing, without losing their existing low fixed rate. Downpayments enables existing borrowers to utilize their equity to obtain an interest-free down payment for their next purchase, without refinancing. Leveraging developments in open banking and AI, Downpayments helps consumers navigate the necessary complexity of handling multiple mortgages and expenses, with actionable insights supported by interest-free capital.
Downpayments was launched by Godfrey Dinh, the CEO and founder of Australia-based Futurerent, which has transformed the Australian real estate industry by empowering property investors with on-demand access to their rental income and has advanced over $25 million AUD to property investors, primarily powering the down payment.
Downpayments also offers buyer representation as a registered in-house brokerage, to ensure clients are getting the best deal possible.
KEY QUOTES:
“Access to the down payment is the biggest barrier to creating wealth through property, and peoples’ personal financial lives are inseparable from their property goals. We started Downpayments to empower investors on their journey to financial independence. There has been very little innovation in this area, but with an abundance of data and our proprietary technology, we’re able to help people with one of the biggest purchases of their lives. We are particularly excited to begin serving property investors in Florida, where there is a tremendous level of real estate activity that we believe could grow with easier access to capital.”
— Godfrey Dinh
“Godfrey and his team have demonstrated a best-in-class approach to innovating for the real estate financing industry. With Downpayments, they’re tackling one of the thorniest issues surrounding real estate transactions and have found a way to turn hopeful buyers into actual buyers by unlocking easier, faster access to a down payment. We are thrilled to partner with the team as they begin to scale in Florida and throughout the U.S.”
— Dave Garland of Second Century Ventures
“We are excited to continue partnering with Godfrey and his team as they expand into the U.S., leveraging the technology and approach to risk they have developed in Australia. PFG started working with Futurerent in late 2022, and this U.S. expansion provides an opportunity to unlock equity as the national average loan to value ratio in the U.S. has fallen.”
— Max Penel, Co-Head of Fintech at Partners for Growth
