Accept.inc provides $ 90 million in debt and equity to expand its digital mortgage lending platform – TechCrunch

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Many startups have been created to help people offer homes for money in order to gain an edge over other buyers, especially in ultra-competitive markets.

Accepti.inc is a Denver based company trying to create a new category of real estate technology. To help scale its digital mortgage platform, the company announced today that it has secured $ 90 million in debt and equity, of which $ 78 million in debt and $ 12 million in home equity. Signal Fire managed the equity financing, which also included existing seed investors Y Combinator and DN Capital.

Accept.inc describes itself as an iLender, or “technology lender” that empowers people to submit all-cash home offers after qualifying for a mortgage.

Using this platform, a buyer first qualifies and can then start looking for homes that match or less than the amount he or she is approved for. They can buy a more expensive house, but any amount more than the approved one will have to be paid out of their own pocket. Historically, most buyers are unaware that they will have to pay out of pocket until they make an offer for a particular home and the valuation matches the amount of price they pay for the home. In such cases, the buyer must pay the difference out of his own pocket. With Accept.inc., Its executives say, buyers know in advance how much they’re approved and can spend on a new home “so there won’t be any surprises later.”

SignalFire Founding Partner and CTO Ilya Kirnos describes Accept.inc as “the first and only iLender”.

He points out that because it’s a lender, Accept.inc doesn’t make money charging buyers a commission like some others in the all-cash offer.

“Unlike iBuyers oralternative iBuyers“Accept.inc provides cash to buy a home and then makes money from mortgages and title deeds, meaning sellers, home buyers and their agents do not pay additional costs for services,” he told TechCrunch.

IBuyers buy instead homes from sellers who sign up online make a profit by frequently renovating and selling those homes and then helping people buy another home with all their money. They also make money by charging transaction fees. Many companies work in this area, including well-known players such as Opened door and Zillow and newer players such as Homelight.

Image credit: Accept.inc. Left to right: Co-founders Adam Pollack, Nick Friedman, and Ian Perrex.

Since its founding in 2016, Accept.inc has stated that has helped thousands of buyers, agents and sellers purchase hundreds of millions of dollars worth of homes. Company Growth was 14x in 2020, according to CEO and co-founder Adam Pollack, and from June 2020 to June 2021, it achieved 10x growth in terms of team size, number of transactions, and revenue. Accept.inc wants to leverage its new capital to build on that momentum and meet demand.

Pollack and Nick Friedman met while in college and began creating Accept.inc with the goal of “turning every offer into a cash offer.” Basically, the couple “flopped within two years,” Pollack jokes.

“Basically, we’ve become an encyclopedia of 1000 ways to help people make cash offers. would not work, ”he said.

The team went through Y Combinator in the winter of 2019 and that’s when they created the iLender concept. In the iLender model, the company spends its money buying a home for buyers. Once the loan from Accept.inc is ready to close, the company sells the home back to the buyer “at no additional cost or commission.”

“Basically, what we have learned over these two years is that you need to vertically integrate all of your core competencies and you cannot rely on third parties to own or manage your special sauce,” said Pollack TechCrunch. “We also realized that if you are going to create a cash offer for those who can afford a mortgage, you must make it a completely bona fide cash offer that closes three days later, as opposed to the best version of what existed. … And you have to own it, take the risk associated with it, and feel comfortable with it. “

According to the couple, the advantages of their model are that buyers become buyers for cash, sellers can close deals in as little as 72 hours, and agents “receive a guaranteed commission check.”

“Our mission is that everyone has an equal chance of owning a home,” Friedman said. “We not only want to level the playing field, we want to create a new standard.”

The company claims that customers using Accept.inc win 6-7 times more often. With its new capital He also plans to double his team to 90 and expand into new markets outside of his home base in Denver.

SignalFire Partner Chris Scoggins believes Accept.inc differs from other lenders in its focus “Getting a home, not just servicing a loan, with a business model that is 10 times more capital efficient than other market participants.

The team is committed to… leveling the playing field for home buyers who are now losing out on cash-to-play offers from flippers and wealthy people, ”he added. “We see tremendous opportunity for Accept.inc to become the backbone of the future of mortgage lending. ”

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