historically, Sundae ’ s business model relied on multiple cash buyers vying for its market listings with sellers choosing from the top three cash offers to incentivize rival .
now, however, Sundae ’ s lend service will help its investors with finance options that will include competitive rates, pre-approvals and underwrite, alongside the upfront fund for its listings .
“ The biggest challenge investors face is finding opportunities. Their second base biggest challenge is financing, ” said Josh Stech, CEO and co-founder of Sundae.
Reading: Sundae unveils lending service to help property investors finance on its marketplace – FinLedger
The raw option builds on Sundae ’ s current business model, which Stetch and Sundae have measuredly differentiated from an iBuyer for years. Its argumentation : Sundae focuses on buying distress houses that need significant renovations in “ as-is ” stipulate and are often rejected by iBuyers .
Another remainder is that most iBuyers provide an offer before seeing the house, which means the price about constantly changes later on, the startup claims .
interested sellers can go to Sundae ’ s market and request an offer wherein the caller will then gather extra information, conduct a home chew the fat and make an put up. If the seller accepts and an inspection is completed, the company offers a $ 10,000 cash progress before close to help homeowners with moving costs or other expenses. It charges no closing costs or agent fees .
Sundae claims that on average, sellers receive 10 offers within three days on its platform .
Launched in 2019, Sundae ’ s popularity has taken off in the proptech sector, having raised a total sum of fund to date just over $ 135 million. Its most recent circle took space in July when the startup raised an $ 80 million Series C fund, co-led by Fifth Wall and General Global Capital.
In addition to providing a marketplace to connect sellers of disquieted property to the best buyer, the inauguration besides operates as a property investor and will purchase, renovate and resell properties through its resale brokerage, Sundae Homes.
Read more: Valentine’s Day Ice Cream Sundae Bar
Sundae Funding, however, will besides be available for properties sourced outside of Sundae ’ s market and investors can even go a far as financing their remodel and construction fees in addition to the purchase price of the house .
According to the proptech, Sundae borrower ’ randomness furnished cover documents are only reviewed once a year. Borrowers are given access to Sundae ’ s team of loanword experts who can offer one-on-one steering in choosing the mighty financing choice that meets their needs .
The lend plan is presently available in California – Sundae ’ s home plate state of matter and where the program was piloted – equally well as Florida, Georgia, Texas and Colorado with more states to become available over the adjacent few months. With its uncover, Stetch hinted at the ship’s company ’ second mission to become a “ one-stop shop ” for property investors .
In summation to Thursday ’ s product newsworthiness, Sundae besides revealed it is expanding its proprietary operations across the Carolinas and Tennessee. Sundae ’ second Marketplace is now available in Charleston, and will soon be an option for home sellers in Greenville, Myrtle Beach, Charlotte, Raleigh-Durham, and Nashville .
According to the company, the market expansion will increase the caller ’ second geographic footprint to 28 total markets countrywide.
Read more: History of Ice Cream Sundae
“ For investors, these markets are hyper competitive, with 1/3 less issue than common. We ’ re looking advancing to being the home where they can promptly and well access our full inventory of properties to make and offer and secure their next property, ” said Stech .
Sundae ’ s lending service will be available in these markets in the following few months .
