Real estate tech companies continue to draw huge amounts of financing. EasyKnock, touted as the first institutionalized sale leaseback residential platform, closed $3.5 million seed financing. The round, announced Wednesday, came in addition to new debt financing of $100 million.
The company previously raised $1.2 million in seed funding in 2017, which it used to expand the team and refine product-market fit. The new funds are expected to help increase real estate closings through the EasyKnock platform, bolster customer growth and expand into new markets.
Montage Ventures, Crestar Partners and Blumberg Capital led the effort.
EasyKnock is currently in five states — Texas, Georgia, Florida, Tennessee and South Carolina. The company is looking at areas where there has been growth in equity and population. Washington and Colorado are the next states, we're told.
EasyKnock's mission is to buy homes for market value. The seller-tenant pays market rent. The purchase is part cash from the sale, part purchase option, which provides a hopeful path to ownership. The lease can be renewed annually, and the purchase option prices increases annually by fixed amount per the lease.
The startup looks at what the rent in a market would be for a home of a certain value, Kessler explained. The idea is to charge the same if they left to rent elsewhere without the cost and stress of moving.