Home Real Estate Real estate investing app Fintor raises $6.2M at $80M valuation • TechCrunch

Real estate investing app Fintor raises $6.2M at $80M valuation • TechCrunch

by Ozva Admin

fintor, a fintech startup that makes it easy for non-accredited investors to invest in real estate, has just launched its mobile app for iOS and Android. It also just raised a $6.2 million extension funding round from its existing investors, including Public.com, Hustle Fund, 500 Global, VU Ventures, Graphene Ventures, and angel investors like Manny Khoshbin, Andy Madadian, Cindy Bi, and Marcus Ridgway. .

This latest round values ​​Fintor at $80 million, founder and CEO Farshad Yousefi told TechCrunch exclusively. With the new funding, says Fintor has now risen a total of $9 million from investors.

The Palo Alto, California-based company is qualified under Regulation A of the US Securities and Exchange Commission (SEC) to offer investors fractional shares in the properties it owns. It does this by issuing LLC shares that own the underlying properties, Yousefi explained in an interview.

Yousefi started the company in early 2021 with his co-founder Masoud Jalali to address a growing demand they had noticed among Generation Z and millennials to invest in real estate, an asset class that has often been inaccessible to everyday investors who don’t. they can always afford to buy. entire properties.

Fintor allows its clients to invest in properties with as little as $5, according to Yousefi. The platform currently offers stock in single-family residences in states including Georgia, South Carolina, Texas and Alabama, and Yousefi said it plans to enter 20 different markets by the end of 2022.

Eventually, Yousefi said, he hopes to build Fintor into an all-encompassing real estate platform by offering multi-family, industrial and other properties to investors.

It is a competitive market, with new companies including Landa, any Y Houses Arrivalsall of which have been covered on TechCrunch before, seeking to democratize access to real estate investing.

Yousefi highlighted a few different aspects of Fintor that help him stand out.

First, unlike many other real estate investment platforms, Fintor operates a secondary marketplace where people can bid and ask for properties after properties have been listed on the platform for more than 90 days, Yousefi said.

The second differentiator Yousefi highlighted is Fintor’s focus on content that promotes real estate literacy, which is specifically targeted at Gen Z and Millennials who make up Fintor’s target customer base. The app provides tutorials and educational modules that teach users how to analyze real estate deals, Yousefi said.

Fintor aims to stay operationally light, Yousefi said. The company outsources its property management function to an outside vendor rather than trying to do it in-house, he explained. By outsourcing property management, Fintor can focus solely on its core mission of making strong-yielding acquisitions and fractionating those assets for investors.

Yousefi added that he is not worried about having competitors due to the novelty of the niche. He said other companies are helping Fintor with the broader mission of educating people about what fractional investing really is and getting the word out that it’s available for real estate.

“I don’t see Arrived Homes or Landa as competitors. Rather, I see the stock market and the crypto market as competitors,” said Yousefi.

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