Fund That Flip, a fintech platform and marketplace lender of residential real estate loans, recently announced a raise of $11 million from Princeton, New Jersey-based growth equity firm Edison Partners.
Launched in 2014, Fund That Flip provides short-term loans to experienced real estate redevelopers who buy and renovate residential properties. 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. Since Fintech Venture Fund, an Atlanta based early-stage investor, 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. Fund That Flip was recently named No. 42 on the 2019 Inc. 500 list of fastest-growing private companies in America and plans to use the additional capital to expand its market share of the trillion-dollar residential real estate investment industry.
Historically low levels of single-family home construction have created an affordability challenge for many willing home buyers in the US. With the average age of a single-family home at 37 years old, millions of properties demand significant investment to meet the preferences of modern home buyers. 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 Matt Rodak, CEO and Founder of Fund That Flip. “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.”
Jennifer Lee, Vice President at Edison Partners, led the investment and will 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,” said 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 capital, Fund That Flip plans to scale distribution around its core product set in existing and new markets. The company also plans to develop additional residential loan products and provide new ways for institutional and accredited investors to fund their offerings.
Shulman Rogers Gandal Pordy & Ecker, P.A., acted as legal counsel for Fund That Flip.