Flyhomes, the five-year-old real estate startup that lets people make cash offers on homes while they work to procure a mortgage, announced a Series C round of funding Thursday totaling $150 million.
The company’s latest round was co-led by venture capital firms Norwest Venture Partners — an active investor of industry players homeward, CoreLogic and Opendoor — and Battery Ventures. Additional involvement originated from Fifth Wall, Camber Creek, Balyasny Asset Management, Zillow co-founder Spencer Rascoff, along with present investors Andreessen Horowitz and Canvas Partners.
According to Flyhomes, Thursday’s round will be used to expand the firms current footprint into new markets as well as increase growth in its current markets of Seattle that the Bay Area, Los Angeles, San Diego, Portland and Boston. With additional capital, the business said it also plans to double its headcount over the next year whilst incorporating new services.
People who utilize Flyhomes to purchase a new property will get a guarantee that their previous house will sell in an agreed-upon price within 90 days. If not, Flyhomes will purchase it. If it sells over the established price during this period of time, the seller keeps the excess.
Flyhomes makes its money from brokerage fees, not from turning homes, said Tushar Garg, Flyhomes’ CEO and co-founder at the time of its Series B funding round in 2019.
With intense demand for homes on the higher end of the pricing spectrum, new updates to the QM rule that went into effect on March 1 and growing investor interest in jumbo mortgages — this is the perfect time for the broker community to support their clients with speed and ease.
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The buyer pays for FlyHomes’ expense of owning the house, but acc