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Backflip Secures $15 Million to Assist Real Estate Investors in House Flipping

ByHuey Yee Ong

May 4, 2024

Backflip Secures $15 Million to Assist Real Estate Investors in House Flipping

Backflip, a startup established in late 2020, has successfully raised $15 million in a Series A funding round led by FirstMark Capital. This investment will support Backflip’s innovative approach to providing real estate investors with short-term loans to finance house flips.

The platform, which combines functionalities similar to Zillow and Shopify, aids investors in sourcing, tracking, and evaluating potential investments. Since its inception, Backflip has raised a total of $28 million in equity and $67 million in debt financing. The company’s growth and potential in the real estate investment sector are underscored by its near profitability and significant user engagement on its platform.

Founded by CEO Josh Ernst, a former investment banker and venture capitalist, Backflip simplifies the financing process for real estate investors. The company launched a stealth private beta in 2021, which ran through early 2022, and has since seen a nearly 5x increase in its revenue in 2023, reaching an annualized figure of $10 million. This growth has occurred despite challenging market conditions marked by rising interest rates.

Backflip, now with 47 employees and headquarters in Dallas and Denver, has funded over 900 homes, with users on the platform analyzing properties worth around $5 billion each month.

Furthermore, investors using Backflip’s services have realized an average gross profit of $82,000 per property, typically repaying their loans within six months. The platform’s loans, mainly bridge loans with a duration of 12 months, carry interest rates 2% to 4% higher than traditional residential loans. This allows investors to either sell the renovated property or refinance into a longer-term loan with another lender.

Notably, Backflip’s loan approval process does not require a W-2 form, which facilitates quicker transactions for borrowers who also benefit from bundled rehab and construction loans.

Backflip’s technology significantly enhances the investment process by:

  • Property Sourcing: Assisting investors in sourcing properties efficiently.
  • Investment Tracking: Enabling the tracking and evaluation of potential investments.
  • Risk Reduction: Aiding in analyzing deals to make lower risk, better buying decisions.
  • Employee Expertise: Leveraging the expertise of employees from, known for its advanced digital mortgage solutions, to enhance processing capabilities.

The funding round saw participation from existing backers such as Vertical Venture Partners, LiveOak Venture Partners, Revel Partners, ECMC, and Crow Holdings, along with several angel investors.

FirstMark Capital’s Managing Director, Adam Nelson, expressed confidence in Backflip’s potential to redefine the “fix and flip” market, which he views as a significant opportunity given that over 50% of U.S. homes are more than 40 years old and often require upgrades to meet modern standards, according to 2023 research from the National Association of Home Builders

Backflip operates on a marketplace model, earning money through a take rate on the loans it originates and subsequently sells, without charging subscription fees.

This model, coupled with its comprehensive data-driven underwriting process, positions Backflip as a pioneering platform in the $100 billion+ annual transaction market of house flipping, offering significant value and monetization opportunities across various transaction phases.

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Featured Image courtesy of Dillon Kydd on Unsplash

Huey Yee Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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