- Proptech Doorvest allows investors to buy, own and operate a home for rent, all remotely.
- The startup has raised $ 39 million in Series A with established funders like Invitation Homes.
- Check out the 12-slide Doorvest used to raise Series A funding.
Residential real estate investing is hot these days, but not everyone got to participate.
There is still a huge barrier to entry for retail investors without the finance and property management resources of institutions that are snapping up homes on a massive scale. Another issue, especially for millennials, is making a down payment.
The startup of Proptech Doorvest thinks it has the solution.
Doorvest, founded in 2019 by Andrew Luong and Justin Kasad, helps ordinary investors buy single family homes for rent for passive income. Through its online platform, investors with a down payment of around $ 30,000 can subscribe, buy and manage their rental properties with just a few clicks and earn 6%.
“The company’s mission is to democratize access to real estate,” Luong told Insider earlier this year. He experienced firsthand the difficulties of entering a real estate market from a distance, while competing against powerful Wall Street institutions.
A 14-fold increase in customer demand this year prompted Doorvest to look for more ways to compete with larger companies. On Thursday, he launched his own iBuyer to complement his home acquisitions, just weeks after Zillow’s Zillow Offers branch collapsed, casting doubts on the profitability of those companies, which offer instant deals to sellers.
The startup also announced that it had raised $ 39 million in a Series A funding round led by venture capital firm M13. Doorvest has raised $ 3.6 million in previous rounds from investors including Markus Ridgeway of Invitation Homes and Adam Nash of Wealthfront.
The company said it plans to use the new funding “for talent acquisition, expansion into new Sun Belt markets, and investment in products and technology” to speed up the buying process.
Currently, Doorvest operates solely in the Houston market, the benefits of which include rapid population and employment growth, homeowner-friendly regulations and attractive home prices, according to its website. Once Doorvest purchases homes, it spends between $ 25,000 and $ 35,000 on renovations and sells them to investors based on their individual preferences, while taking a share.