BoardRE Inc., a start-up mortgage company with a rather different approach to homebuying, has announced the launch of its services in Colorado, where the Denver-based firm is headquartered.
Under the BoardRE business model, the company buys homes on behalf of buyers that it approved for a mortgage. When the buyer’s loan with Board is ready to close, Board will sell the home to the buyer at the same price that it bought it for, a process that takes an average of two weeks or less. The company explained that it generates revenue from the mortgage origination, so there are no additional costs to buyers, sellers or real estate agents who leverage its cash offer service.
Board is a Y Combinator-backed company, with venture financing from Global Founders Capital, DN Capital, Ilya Kirnos and Silicon Valley’s 1517 Fund, which is backed by Peter Thiel. The company recently completed its first round of venture funding, raising $7 million in debt and equity, which will be used to launch the company’s services in the nation’s most competitive real estate markets.
“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 Adam Pollack, co-founder and CEO of Board. “Board is built to allow anyone, whether it’s a first-time home-buyer with five percent 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.”
Nick Friedman, co-founder and chief operating officer of Board, said, “When it comes to buying a home, I’ve never heard anyone say they’ve had an ‘enjoyable mortgage experience.’ We don’t want a weak offer adding to the list of disadvantages a mortgage buyer experiences, so Board levels the playing field by providing any buyer it approves with the strongest offer in real estate. With Board, any buyer is an iBuyer, primed to compete against any offer.”