The startup is wagering that as widespread pandemic-induced unemployment continues to grow, homeowners will consider tapping into home equity
Home sales and leaseback company EasyKnock has raised $20 million in anticipation of renewed demand for homeowner equity.
The New York-based startup allows homeowners to tap into the equity on their homes by buying the property and renting it back to them as tenants. Since launching in 2016, EasyKnock has raised $103 million in seed funding and $215 million in Series A debt-equity funding.
The Series B funding round was led by existing investor Blumberg Capital and QED Investors. FJ Labs, Correlation, Moderne, 7BC and Interplay also provided funding. Homeowners who use EasyKnock end up receiving around 70 percent upfront equity cash-out while paying a market-rate monthly rent, a 1.5 percent transaction fee, and a 2 percent closing fee — a costly solution for homeowners who need cash fast.
“There are occasions where homeowners are forced to choose between their home and their finances,” EasyKnock CEO Jarred Kessler said in a press statement. “We enable consumers to monetize their equity and take control of their future.”
The latest announcement comes at a time when unemployment is at an 80-year high and many people are looking for different ways to tap into their finances. As the pandemic and unemployment rage across the U.S., EasyKnock anticipates that its leaseback solution will be chosen as an option by more homeowners.
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