Backflip Secures Substantial Funding to Empower Real Estate Entrepreneurs

Backflip, the innovative fintech platform for real estate investors, has announced a significant capital raise to fuel its mission of supporting entrepreneurial real estate ventures. The company has secured $184 million in funding, including $30 million in equity and $154 million in asset-backed financing, to expand its residential transition loan (RTL) offerings and drive the growth of its members' businesses.

Empowering Real Estate Entrepreneurs to Revitalize Communities

Backflip's Impressive Growth Trajectory

Backflip has experienced remarkable growth, with its trailing 12-month origination volume tripling year-over-year to a $375 million run rate. This impressive performance has been achieved despite the challenges posed by the current housing market conditions. The platform's members have been actively analyzing an average of $10 billion in properties each month, showcasing the strong demand for Backflip's services.

Leveraging Partnerships to Fuel Expansion

The capital raise has been made possible through strategic partnerships with industry leaders, including ECMC Group, Setpoint, Performance Trust, and other key investors. These collaborations have enabled Backflip to establish a $20 million joint venture with ECMC and a $10 million Backflip-managed private credit fund. Additionally, Performance Trust has arranged a $100 million warehouse line, and Setpoint is providing a $54 million credit facility to support Backflip's growth.

Capitalizing on the Institutionalization of the RTL Asset Class

The timing of this capital raise is particularly significant, as the residential transition loan (RTL) asset class has gained increasing attention from sophisticated investors. The emergence of Morningstar's investment-grade ratings on RTL securitizations earlier this year has catalyzed an unprecedented influx of institutional investors to the sector. In the first half of 2024 alone, there were $4 billion of RTL securitizations, representing a 546% increase compared to the same period in 2023.

Empowering Real Estate Entrepreneurs with Technology and Capital

Backflip's mission is to catalyze the future of real estate entrepreneurship by providing an end-to-end platform that serves a like-minded community. The company's purpose-built technology and capital solutions enable members to efficiently manage their investment pipelines, secure financing, and grow their real estate investment businesses. This latest capital raise will allow Backflip to continue scaling its sought-after loan product offerings, further supporting the important work of its members in rejuvenating obsolete homes and revitalizing local communities.

Fostering Partnerships and Driving Innovation

Backflip's co-founder and COO, Jake Rome, expressed the company's gratitude for the trust and support of its capital partners, stating, "Raising these private credit vehicles and the warehouse facilities allows Backflip to offer ever-improving capital products to our members doing the important work of rejuvenating obsolete homes." The company is excited to be at the forefront of a rapidly-institutionalizing investment asset class, working closely with its partners to drive innovation and provide comprehensive solutions for real estate entrepreneurs.

Setpoint's Enthusiasm for the Backflip Partnership

Michael Lam, Co-Founder and CIO of Setpoint, shared the company's enthusiasm for deepening its relationship with Backflip. Lam stated, "We are excited to deepen our relationship with the Backflip team and have been big fans of their mission from the onset. There is a clear market need to support local real estate entrepreneurs with technology and capital products – Setpoint is enthused about partnering with Backflip and contributing to the solution."