• About Us
  • Contact Us
  • today headline
  • Write for us
Today Headline
No Result
View All Result
  • breaking news today
    • Politics news
    • Sports
    • Science News & Society
  • Entertainment News
    • Movie
    • Gaming
  • Technology News
    • Automotive
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
  • breaking news today
    • Politics news
    • Sports
    • Science News & Society
  • Entertainment News
    • Movie
    • Gaming
  • Technology News
    • Automotive
  • Health News
    • Lifestyle
    • Insurance
  • Finance News
    • Money
  • Enterprise
  • Contact Us
No Result
View All Result
TodayHeadline
No Result
View All Result

‘Power Buyer’ UpEquity Raises $50M in Series B Funding

October 22, 2021
in Real Estate
Reading Time: 5 mins read
GettyImages 147205360 1400x787 - TodayHeadline


Austin, Texas-based “power buyer” UpEquity has raised $50 million in a series B funding round that the company says will help it originate more than $1 billion in mortgages over the next 12 months, using technology that enables homebuyers to make all-cash offers and close a mortgage in an average of 18 days.

Co-founded in 2019 by Tim Herman and Louis Wilson, UpEquity is a licensed mortgage company in Texas, Florida, California and Colorado, and has raised a total of $77 million to date. The latest round, which is split between $20 million in equity and $30 million in debt, was led by S3 Ventures.

S3 Ventures Partner Charlie Plauche, who will take a seat on UpEquity’s board of directors, said institutional investors have snapped up $77 billion in single-family homes in the last six months, “with no signs of slowing down.”

Charlie Plauche - TodayHeadline

Charlie Plauche

UpEquity “allows the average homebuyer to have a shot at competing with the large real estate investment firms of the world in the homebuying process,” Plauche said in a statement. “We are excited to be a part of leveling the playing field in this industry.”

The company has posted about a dozen openings at its Austin headquarters in engineering, human resources, marketing, operations and sales.

UpEquity says its Buy with Cash program is free for homebuyers, and that it charges as little as $500 for its Buy Before You Sell program to cover the cost of inspecting the buyer’s current home. If the buyer’s current home doesn’t sell before their new home closes, UpEquity buys it, and charges 1.95 percent of the resale price.

The company makes its money by earning a commission from brokering or selling the mortgage that buyers take out to buy their home. In states where purchase contracts aren’t assignable, UpEquity buys the home upfront and writes the mortgage afterward.

Tim Herman - TodayHeadline

Tim Herman

“By removing cost and inefficiencies from the mortgage process, our customers can make all-cash offers at zero cost to them and still get access to competitive interest rates,” Herman said in a statement. “They get the best of both worlds.”

Like competing power buyers Homeward, Knock and Ribbon, UpEquity is positioning itself as an ally of real estate agents by making a case that their clients are more likely to prevail in a bidding war when they submit a contingency-free offer. But UpEquity is a relative latecomer to the scene.

Homeward, which announced $371 million in new funding in May, counts Norwest Venture Partners, Blackstone, Breyer Capital, Adams Street, Javelin, and LiveOak Venture Partners among its backers.

Knock — which offers its Home Swap service in 65 markets — has hired Goldman Sachs to help the company prepare for a public offering.

Ribbon raised $150 million last month in a series C funding round that the company said would help it expand into half of U.S. markets by 2023.

Orchard, another power buyer that employs in-house real estate agents, raised $100 million in a September deal that valued the company at more than $1 billion.

Those power buyer startups are likely to face increasing competition from mortgage lenders who understand the advantage that cash or contingency-free offers provide homebuyers in markets where listings are scarce.

Better Holdco Inc. — a vertically-integrated company with mortgage, real estate brokerage and title subsidiaries — launched a cash offer program in July that it’s scaled up to 45 markets in 12 states.

A Bellevue, Washington-based regional mortgage lender, Evergreen Home Loans, also now has a cash offer product available in 4 states, illustrating the potential for every mortgage lender to act as a power buyer.

Email Matt Carter


  • Trending
  • Comments
  • Latest

February 2023 Interactive Crossword Puzzle

Amazon Prime New Releases February 2023 Carnival Row - TodayHeadline

Amazon Prime Video New Releases: February 2023

STK top hiking running destinations ft - TodayHeadline

14 Must See Hiking And Running Vacation Destinations Around The World

Nigeria Extends Deadline for Returning Soon to Be Demonetized Naira Banknotes – - TodayHeadline

Nigeria Extends Deadline for Returning Soon-to-Be Demonetized Naira Banknotes – Africa Bitcoin News

PopularStories

Science News & Society

February 2023 Interactive Crossword Puzzle

Amazon Prime New Releases February 2023 Carnival Row - TodayHeadline
Entertainment News

Amazon Prime Video New Releases: February 2023

STK top hiking running destinations ft - TodayHeadline
Health News

14 Must See Hiking And Running Vacation Destinations Around The World

Nigeria Extends Deadline for Returning Soon to Be Demonetized Naira Banknotes – - TodayHeadline
Money

Nigeria Extends Deadline for Returning Soon-to-Be Demonetized Naira Banknotes – Africa Bitcoin News

About Us

Todayheadline the independent news and topics discovery
A home-grown and independent news and topic aggregation . displays breaking news linking to news websites all around the world.

Follow Us

Latest News

February 2023 Interactive Crossword Puzzle

Amazon Prime New Releases February 2023 Carnival Row - TodayHeadline

Amazon Prime Video New Releases: February 2023

STK top hiking running destinations ft - TodayHeadline

14 Must See Hiking And Running Vacation Destinations Around The World

February 2023 Interactive Crossword Puzzle

Amazon Prime New Releases February 2023 Carnival Row - TodayHeadline

Amazon Prime Video New Releases: February 2023

STK top hiking running destinations ft - TodayHeadline

14 Must See Hiking And Running Vacation Destinations Around The World

  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2023 All rights are reserved Today headline

No Result
View All Result
  • Real Estate
  • Parenting
  • Cooking
  • NFL Games On TV Today
  • Travel and Tourism
  • Home & Garden
  • Pets
  • Privacy & Policy
  • Contact
  • About

© 2023 All rights are reserved Today headline

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.