ORDER NOW PAPERLESS CLOSER LOGIN

Colorado PropTech Startup Makes Everyone a Cash Buyer

June 15, 2019, Posted By: Richard Simon

In a market where cash buyers have an unfair advantage, mortgage startup Board aims to provide leverage to other players by using an all-cash offer business model. The company, which recently announced its launch in Colorado, says it has already completed several transactions successfully.

Level Playing Field

Board wants to help all home buyers have a fair shake in multiple-offer situations. By putting in a cash offer, buyers are 97% more likely to win a bidding war. The plan to upgrade to cash gives Board an edge over the competition while providing an advantage to everyday buyers who do not have the cash to compete.  

Purchase for Clients

Board purchases the home on the client’s behalf in an all-cash purchase. The approved client then purchases the home from Board at the same price, with no additional fees. The entire process takes about two weeks. The buyer then holds a traditional mortgage with Board. 

Adding to the attraction of the process, Board says they often receive an additional discount off the asking price because it is a cash offer. That works in their clients’ favor with discounts averaging 5%.

Clients Get Their Dream Home

“Our goal is to ensure our borrowers can compete effectively with all-cash buyers, so they don’t lose the home of their dreams to an unfair advantage,” said Co-Founder and CEO Adam Pollack in an interview with Housing Wire. “Board is built to allow anyone, whether it’s a first-time home-buyer with 5% down or Silicon Valley engineer, to offer sellers the speed and certainty of an all-cash deal. We are building a fairer, cash-only future of real estate that ensures anyone who can afford a mortgage has an equal shot at winning their dream home.”

Backed by Y Combinator

Board has financial backing by some big-name investors, including startup champion Y Combinator. Known for seed funding highly successful startups such as Airbnb, Dropbox, and Reddit, Y Combinator gets in on the ground level of venture funding. Other investors include Global Founders Capital, Peter Thiel’s 1517 Fund, DN Capital, and Signal Fire Founding Partner Ilya Kirnos.

The company raised $7 million in debt and equity and recently closed its first round of funding. These funds will be used towards launches in real estate’s most competitive markets across the United States. Board makes its money from an origination fee.

Stronger Offers

In the same Housing Wire interview, Board Co-Founder and COO Nick Friedman said that by leveling the playing field, buyers are no longer at a disadvantage. “With Board, any buyer is an iBuyer, primed to compete against any offer.”

This is important as cash offers continue to grow in the U.S. All-cash sales rose in 2018 from 20% to 22% of all transactions. Individual investors made thirteen percent of those cash sales. 

The mortgage process can be a difficult one for home buyers. To make matters worse, many miss out on the chance to purchase their dream home when they are edged out by wealthy investors. Board hopes to change the outcome by shifting the power to the common home buyer.

Discover New Home National Title

New Home National Title is changing the way the world views real estate transactions. We have assisted multiple tech-driven startups throughout Colorado in closing their transactions. 

From start to finish, our experienced team and our fresh, innovative technology remove guesswork and move your transaction forward.

We currently work with commercial and residential clients across Texas, Colorado, and Florida, with more states to come soon!

Contact us today to learn how our Elite Closings program can make your job easier and win you repeat business and referrals!

Drop A Message

Got any questions for us? We would love to hear from you! Fill out the form below and a member of our team will be in contact with you shortly. Thank you for your interest in New Home National Title!