- Fintech platform and marketplace lender of residential real estate loans Fund That Flip has raised $11 million
Fund That Flip — an award-winning fintech platform and marketplace lender of residential real estate loans — announced it raised $11 million in funding from Edison Partners. Founded in 2014, Fund That Flip provides short-term loans to experienced real estate redevelopers who buy and renovate residential properties. And after origination, Fund That Flip offers accredited and institutional investors the opportunity to purchase fractional shares of the loan and earn an 8%-9% annualized yield.
Ever since Fintech Venture Fund led the company’s seed round in 2016, the company has realized exponential growth, doubling its revenue, loan origination volume and customer base each year. And Fund That Flip was recently named number 42 on the 2019 Inc. 500 list of fastest-growing private companies in America.
With the funding round, Fund That Flip is planning to expand its market share of the trillion-dollar residential real estate investment industry.
Historically low levels of single-family home construction have created affordability challenges for many willing homebuyers in the US. And with the average age of a single-family home at 37 years old, millions of properties are demanding significant investment to meet the preferences of modern home buyers. Plus real estate redevelopers who leverage Fund That Flip’s financing to renovate aging or neglected properties are able to deliver a like-new home at an attainable price point.
“Our mission is to enable our clients to create wealth and improve communities by investing in real estate. This additional capital is going to further advance the mission to more clients and communities across the country,” said Fund That Flip founder and CEO Matt Rodak. “Edison Partners has an impressive track record of investing in market leaders, and we’re incredibly excited and honored to have them as a partner as we expand our product offerings, technology, and services.”
Edison Partners vice president Jennifer Lee had led the investment and is going to join the board of directors at Fund That Flip.
“Fund That Flip’s offering is well-timed with the growth of the residential real estate industry’s addressable market,” added Lee. “As affordability continues to concern many home buyers, the renovation and recycling of existing homes offers an attractive, sustainable solution. We look forward to helping the Fund That Flip team accelerate their vision of being the destination platform for residential real estate investors.”
With the funding round, Fund That Flip is planning to scale distribution around its core product set in existing and new markets. And the company is also planning to develop additional residential loan products and provide new ways for institutional and accredited investors to fund their offerings.
