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Startups Front Cash to Homebuyers in Bidding Wars
CRETech
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1 minute read
It’s not always easy for consumers to get a mortgage quickly, but money is abundant for companies that want to step into the homebuying process.
The most active real estate broker in the Pacific Northwest this year is a former Microsoft Corp. program manager who used to work on Bing. Tushar Garg isn’t the typical salesman walking would-be buyers through carefully staged houses. He’s co-founder of FlyHomes Inc., a three-year-old real estate brokerage in Seattle that promises to turn its clients into cash buyers.
The idea is relatively simple: A house hunter hires FlyHomes as her broker. When she’s ready to bid on a home, she gives the startup a deposit of 5 percent of the bid price. FlyHomes then makes an all-cash offer for the property, using its line of credit from a bank. After the deal is done, it sells the house to the homebuyer once she’s gotten a mortgage. In return, the company earns the typical 3 percent commission from the original seller.
