Rental income fintech Futurerent has raised $9 million as it looks set to roll out nationally.
The round was led by OIF Ventures, which includes BridgeLane, Mulpha International, iPartners, MFO Investments and Second Century Ventures. The funds are earmarked to expand the startup’s national presence, launch new products and build further integrations.
Futurerent gives real estate investors up to $100,000 in rental income within two business days.
The option has been popular, with landlords requesting more than $2 million in advanced rent monthly. The fintech said its book size has grown 10x in the past fiscal year, while total rental advances to real estate investors have increased by 11x. The company did not disclose the total size of its loans.
Former Vice President of Deutsche Bank Australia, Godfrey Dinh, founded Futurerent in 2019.
“We’re giving real estate investors an easier way to cash out and access the money they need to grow their wealth,” he said.
“We asked investors which would they prefer: $500 a week, or $52,000 up front? For most real estate investors, getting up to 2 years of rent ahead is a good idea. Our customers convert their rental income into investment capital so that they can do more with their rent.”
The company pays a 6% clip of its rent advance to landlords.
Dinh said “a significant portion” of his customers have the savings to meet their needs but prefer his company’s option.
“They also want to avoid the complexity of doing business with the banks. The banks are good at helping homeowners with their home loans, but Futurerent offers a much better experience for real estate investors,” he said.
“Since we started, Futurerent has had zero losses and no non-performing trades. This is because we help financially responsible real estate investors increase their wealth by doing more with their rental income.”
OIF Ventures partner Jerry Stesel said Futurerent has created a new financing category.
“Futurerent has identified easy and affordable access to capital as the biggest barrier preventing real estate investors from creating wealth, and they have developed a groundbreaking solution,” he said.
“We believe the company’s momentum will continue to grow, and Godfrey’s vision to rethink how real estate investors create wealth will take Futurerent to significant heights.”