Fueled originally by Fintech Venture Fund of Atlanta in 2014, Fund the Flip has doubled its revenue. Another feather in its cap is being named #42 on the 2019 Inc. 5000 list of the fastest growing companies in the US.
With annualized yields averaging 8-9%, Fund the Flip recently acquired new venture capital funding from New Jersey’s Edison Partners with the intention of expanding its market share of the trillion-dollar residential real estate investment industry.
Fund the Flip sees itself as an alternative to new construction building. According to Home Advisor, new construction costs average $296,522/house based upon location and architectural type. And due to that average cost, new construction starts in July 2019 were down -4% below or 1.19M units compared to last year’s estimate of 1.24M, according to the US Census Bureau.
Most flipped houses enter the housing market at a locale’s median list price, lower that the average cost of new construction. Investors then try to buy that flip at 70% of the house’s after-repair price, even lower than a median list price and the cost of a newly constructed home.
Fund the Flip intends to make its investors money AND to improve housing availability and affordability for the end consumer. “As affordability continues to concern many homebuyers, the remodeling and recycling of existing homes offers an attractive, sustainable solution…” for buyers, said Jennifer Lee, vice president of Edison Partners.
Matt Rodak, CEO and founder of Fund the Flip, said, “Our mission is to enable our clients to create wealth…and to help investors and rehabbers renovate older properties so they can enter the market at more competitive price points and ease the market’s inventory strain.”
Obviously, something’s working for all involved…the investor, the rehabber, the end consumer and for Find the Flip as well.
Thanks to InmanNews for source data.