A company in the real estate industry near Dallas has collected $15 million to establish a convenient place for business owners who want to learn and get money to renovate homes.
FirstMark Capital conducted Series A fundraising for Backflip, a company formed in 2020, which reported earning over $10 million in profits in 2023 and moving close to being profitable.
According to a statement by Backflip CEO Josh Ernst, Backflip is not only focused on flipping houses, but also changing the perspective on what it means to be a real estate entrepreneur, with a mission to enable more people to access funding and tools for the industry. published Backflip aims to provide information, support, and financial products tailored for entrepreneurs, removing the barriers that have historically hindered success in starting and expanding in the industry, with the goal of empowering members to revitalize communities one modernized home at a time.
Data from ATTOM shows that the average profit from flipping a house in the first quarter of 2023 was $56,000, a 4.7% increase from the same period in 2022, with over 72,000 homes being flipped nationwide in that quarter. reported Yahoo News.
ATTOM's data indicates that house flippers in the Dallas-Fort Worth area may not have performed as well, with returns dropping to 4.9% in the third quarter of 2023 from 6.6% the previous year, and gross profits averaging just $16,700, with 1,684 homes flipped in the quarter.
Adam Nelson, managing director at FirstMark, expressed excitement about leading Backflip’s Series A funding to continue constructing the financial system for this essential yet often overlooked part of the real estate industry, praising the Backflip team for creating an exceptional product for its members through deep product empathy, technology, and financing.
Backflip aims to assist investors in achieving greater profits using technology and financing, recognizing the significant impact flipping properties can have on neighborhoods and communities, especially in areas with numerous properties being flipped.
Christie’s Enterprises claims that flipping can raise neighborhood property values and foster a better sense of community among residents.
The real estate firm highlighted the visible impacts of house flipping in a blog post, noting that it revitalizes abandoned and neglected properties, bringing new life and vitality to once-depressed areas, and inspiring neighbors to invest in their own homes and enhance overall community aesthetics.
