Sundae raised over $130 million
Although Sundae is precisely another jobber trying to get a edit of the action between sellers of distressed properties and the investors who want to buy those distress properties, whatever Sundae is selling, investors are buying. In total, the company has raised around $ 132 million in fund from investors, including QED Investors, Wellington Management, Founders Fund, Susa Ventures, Navitas Capital, First American Financial, Crossover VC, Intersect Capital, Gaingels, Oberndorf Ventures, and Prudence Holdings.
How Sundae works
Sundae works as a sort of discount version of a multiple number service ( MLS ). When homeowners sell using a real estate agentive role, that agent normally lists the home on a local MLS so that buyers can find the base. But homeowners of “ as-is ” properties much do n’t think to sell their home the traditional room, or ca n’t, and are frequently advanced for wholesalers who inevitably approach them. ice-cream sundae wants to get those owners before the wholesalers do. Its strategy is to entice homeowners of stressed properties to list on the Sundae marketplace. ice-cream sundae does this by offering a $ 10,000 cash advance to anyone who lists on the Sundae market, deoxyadenosine monophosphate retentive as the house meets Sundae ‘s qualifications upon inspection. Sundae besides claims to net customers more money overall. This scheme seems to be working, as Sundae realized a 600 % year-over-year tax income increase from June 2020 to June 2021.
The deviation between regular wholesalers who deal in off-market distressed properties to assign to investors and Sundae is the marketplace, which gets investors competing for homes. theoretically, homes sell for a higher price since bid wars are probably to happen.
How investors use Sundae
Sundae started in four California markets and has since expanded to 14 markets in the follow states :
- California
- Colorado
- Florida
- Georgia
- Texas
- Utah
Investors who want to use Sundae must first register with the Sundae market and then look for a home. If they find one they would like to purchase and if their offer is accepted, the investor pays a tip to Sundae to assign them the place — precisely like what a traditional jobber does. The only dispute is alternatively of deals being strictly off-market, Sundae lists its sweeping deals on its marketplace .
The Millionacres bottom line
Sundae is growing and is using its latest support beat to expand to even more markets and hire more employees, interim trying to disrupt the wholesale industry. If you buy distressed properties where Sundae operates, you might want to check it out and compare this company with the way you normally do business. Sundae at least gives you another choice .
