Doorvest, a revolutionary, frictionless method to buy high-yield rental properties entirely online, announced today that it has received $39 million in total, including $14 million in equity and a $25 million credit facility. M13 led the investment, which included Mucker Capital, Gaingels, and Socially Financed, as well as Opendoor CPO Tom Willerer, Daffy CEO Adam Nash, formerly CEO of Wealthfront, and Marcus Ridgway, Founder of Invitation Homes.
According to Andrew Luong, CEO and co-founder of Doorvest, the firm is a tiny but fast-growing player that expects to utilise the fresh cash to drive an expansion after experiencing 14-fold user growth in the previous year.
According to him, the company’s funding round included a $14 million equity investment from a group of companies led by early-stage consumer-tech venture capital firm M13, as well as a $25 million line of credit that will be used to fund the discount purchase of homes it will rehab for rental investors. The LOC is being provided by an unknown lender, according to Luong.
“We guide consumers through the [rental investment] process, and 70% of them have never directly owned real estate before.” They have the option of bringing their own mortgage lenders or working with one of our partners,” Luong explained.