OfferPad raised $ 150 million in equity and debt financing to buy more homes as competition between iBuyers heats up, the company told Inman.
The company raised $ 50 million in equity financing led by the private equity firm LL Funds, a returning OfferPad investor, and $ 100 million of debt financing through an extension of OfferPad’s existing credit facilities. OfferPad raised this funding during the first part of 2018.
“We believe homeowners should be in control of every step of the real estate transaction, and our goal is to allow people to make the best decision for themselves and their family,” OfferPad cofounder Jerry Coleman said in a statement.
“Our approach fundamentally changes the way people buy and sell homes, meeting the needs of today’s consumer,” Coleman added. “This new capital investment will allow us to continue to expand our service offerings throughout the U.S. and provide new offerings to streamline the entire process of buying or selling a single-family home. We are confident that OfferPad has the most experienced real estate team, the best technology and the best experience for buyers and sellers, and we are excited to help more people across the country.”
With this influx of funding, OfferPad plans to buy more homes from sellers. The company is also looking at releasing new product offerings and entering new markets. An OfferPad spokesperson declined to elaborate on the new product offerings.
Like its competitors Opendoor and Knock, OfferPad buys homes from sellers online, usually at a lower price than the home could fetch on the market, in exchange for a speedy and guaranteed closing. The process appeals to sellers who need to unload a property quickly without the full hassle of a usual deal. OfferPad then resells those homes.
The company operates in Atlanta, Charlotte, Las Vegas, Los Angeles, Orlando, Phoenix, Salt Lake City and Tampa with Houston and Nashville on the docket for expansion soon.
This $ 150 million in new equity and debt financing brings OfferPad’s financing over the past 16 months to $ 410 million. The company says it expects to purchase and sell $ 1.5 billion of single-family homes over the next year.