Sydney-headquartered startup Futurerent, which allows property investors to access up to $100,000 of rent in advance, has secured $50 million in debt financing as it expands into the US market with the official launch of Downpayments.
Founded by former Deutsche Bank executive Godfrey Dinh in 2019, Futurerent has advanced more than $25 million to property investors to date with most customers using the funds to help fund the deposit on a new property purchase.
Futurerent raised $9 million in mid-2022 ahead of a national roll-out in a round led by OIF Ventures with participation from Mulpha Partners, Bridge Lane, MFO Investments, iPartners and Second Century Ventures.
In a LinkedIn post, Dinh explains that Partners for Growth has provided a multi-currency debt facility while an equity investment has been secured from Second Century, the strategic investment arm of the USA's National Association of Realtors.
"We’re on a mission to transform how Americans purchase real estate, by financing the downpayment and allowing the buyer to break down their commitment into affordable, manageable payments that are interest-free, or at low rates," Dinh says.
"This is the culmination of the team’s hard work and dedication on both sides of the Pacific, building on our experience at Futurerent helping Australians with the capital they need to take control of their financial future through real estate.
"Our clients are hardworking families with good incomes, savings and equity that are underserved by the banks and need that 'last piece in the jigsaw' to move forward."
Downpayments has been tailored to the US market and provides not only transformational capital, but also buyer's agency services and cutting-edge technology.
Dinh explains that US mortgage rates skyrocketing to nearly 8 per cent this year has created a difficult environment for those who want to refinance their mortgage to cash out and continue investing without losing their existing low fixed rate.
"Access to the deposit is the biggest barrier to creating wealth through property, and peoples’ personal financial lives are inseparable from their property goals," Dinh says.
"We started Downpayments to empower investors on their journey to financial independence. Building on our learnings in Australia with an abundance of data and our proprietary technology, we’re now able to help Americans with one of the biggest purchases of their lives.
"We are particularly excited to begin serving property investors in Florida, where there is a tremendous level of real estate activity that we believe could grow with easier access to capital."
Dinh describes the launch as an exciting new chapter for Futurerent, bringing an Australian innovation to the US market and in the process provide a smart solution for US property owners.
"Godfrey and his team have demonstrated a best-in-class approach to innovating for the real estate financing industry. With Downpayments, they’re tackling one of the thorniest issues surrounding real estate transactions and have found a way to turn hopeful buyers into actual buyers by unlocking easier, faster access to a deposit," adds Second Century Ventures managing partner Dave Garland.
"We are thrilled to partner with the team as they begin to scale in Florida and throughout the US."
Partners for Growth (PFG) co-head of fintech Max Penel says his company started working with Futurerent in late 2022, and this US expansion provides an opportunity to unlock equity as the national average loan to value ratio in the US has fallen.
"We are excited to continue partnering with Godfrey and his team as they expand into the US, leveraging the technology and approach to risk they have developed in Australia," Penel says.
Get our daily business news
Sign up to our free email news updates.