A Dallas-area real estate company has raised $15 million to create a “one-stop shop” for entrepreneurs seeking the education and financing they need to rebuild their homes.
The company is called Backflip. The Series A funding was conducted by FirstMark Capital. Backflip, founded in 2020, reported profits of over $10 million in 2023 and close to profitability.
“A backflip is more than just flipping a house. It's about flipping the scenario of why, how, and what it means to be a real estate entrepreneur,” said Backflip CEO Josh Ernst of Dallas Innovates. said in a statement released by. “Our mission is to help everyone access the capital and tools they need to participate. Reaching more people in an industry that has had too many barriers to starting and expanding their businesses behind the scenes. In doing so, we are helping our members modernize one house at a time. We are helping to revitalize the community.”
According to ATTOM data, the average home flip in the first quarter of 2023 resulted in a profit of $56,000, an increase of 4.7% compared to the same period in 2022. ATTOM reported that more than 72,000 homes were flipped nationwide in the first quarter of 2023. Yahoo News.
House flippers in the Dallas-Fort Worth area may not fare much better, according to ATTOM data. According to Data Licensing Business, the average return for house flippers in the third quarter of 2023 was 4.9%, down from 6.6% a year ago. Gross margins in this metropolitan area averaged just $16,700, and 1,684 homes were flipped during the quarter.
“To continue our work building a financial operating system for this essential but overlooked part of the real estate value chain, Backflip We are excited to lead the Series A of the company.” . “The Backflip team has combined deep product empathy, technology, and capital formation to build a 10x better product for our members.”
Backflip's goal is to help investors earn higher returns through technology and financing. Property flipping can have a major impact on neighborhoods and communities, especially in areas where several homes have been flipped.
Christie's Enterprises claims that flipping can increase neighborhood property values and foster a better sense of community among residents.
“One of the most visible impacts of residential flipping is the rejuvenation of abandoned and neglected properties,” the real estate company wrote in a blog post. “By renovating these homes, House Flippers brings new life and vitality to once-depressed neighborhoods. These revitalized properties become symbols of hope and inspire neighbors to own their own homes. It encourages investment and improves the aesthetics of the entire community.”
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