With companies like Zillow and Redfin getting into the direct home buying business, and direct buyer Opendoor’s recent $1 billion valuation, it seems as though money is pouring into the space.
Now, HousingWire staffer Ben Lane reports, OfferPad has secured $150 million in new funding to continue growing its direct buyer business.
The Arizona-based company currently buys homes directly from sellers in Atlanta, Charlotte, Las Vegas, Los Angeles, Orlando, Phoenix, Salt Lake City, and Tampa, then makes the necessary upgrades or improvements and sells the home, Lane explains. OfferPad said that is currently projected to buy and sell more than $1.5 billion in single-family homes over the next year.
According to details provided by the company, the funding is a combination of new equity and debt financing.
Included in the financing is a $100 million extension of OfferPad’s existing credit facilities.
Additionally, OfferPad also raised $50 million in new equity funding. Leading the capital raise was LL Funds, which currently manages $1.4 billion for endowments, foundations, individuals, and family offices through multiple private-equity and fixed-income investment vehicles.
OfferPad has now raised more than $410 million in equity and debt over the last 16 months, according to the company.
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