EasyKnock CEO Jarred Kessler
EasyKnock closed $215 million in Series A funding to launch a new program that allows homeowners to sell their property and remain as renters as they search for a new home.
The program, called MoveAbility, will be available for homeowners in Texas, Florida, Georgia, Kansas, Michigan, Arizona, Indiana and Ohio. Blumberg Capital led the debt-equity funding round, which included investments from Montage Ventures, Kairos, FJ Labs, 500 Startups, Correlation Ventures, and Rubicon Ventures, Inman reported.
“With MoveAbility, we’re offering people a bridge between their current home and their future home, which is something millions of Americans need,” EasyKnock CEO Jarred Kessler said in a statement.
Within 24 hours of applying, the New York-based home sale/leaseback company will make an offer to homebuyers that will include a 70 percent upfront equity cash-out, monthly rent, a transaction fee and a closing fee. A homeowner would also have to pay a 5 to 6 percent commission if they choose to use real estate agents.
Homeowners will end up paying between 3.5 percent to 9.5 percent of their home’s value to sell and lease it back. They can remain as renters for up to 18 months.
EasyKnock will also use its latest fundraising round to expand Sell & Stay, EasyKnock’s home equity line of credit leaseback program that lets homeowners cash out of their home’s equity and remain as renters for up to three years. After three years, owners can buy their houses back or move out and cash out on the remaining equity.
Sell & Stay, which is in the same markets as MoveAbility, is expanding to Colorado and Virginia.
In September, EasyKnock raised $103.5 million in seed funding. [Inman] – Katherine Kallergis