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Inman announced in December that Acre Homes, a company that describes itself as a consumer-driven solution for homeownership, had raised $10 million in total funding to date, as of the close of a seed round led by Anthemis. I found out what I did.
The specific amount of the latest funding round was not disclosed. Mr. Inman asked Aker for comment on the amount.
A number of funds participated in the new seed round, including Sovereign’s Capital, Home Technology Ventures, Studio VC, Front Porch Ventures, Unpopular Ventures, Duke Capital Partners, and Fred Tuomi, former CEO of Invitation Homes.
Acre’s model is rooted in alternative finance. The company offers customers equity building through short-term mortgages of three to five years on the homes they purchase. Down payments are low, typically around 5% paid to Acre.
At the end of the first term, the buyer has the option of applying a “value share” to the amount to purchase a home from the acre, transferring that share to a home on another acre, or moving out and taking it home. can.
Acre customers, on average, “are expected to save $9,000 on their purchase costs and benefit from an additional $50,000 in ongoing savings and home appraisals,” according to the announcement. The latter figure is based on an estimated average annual price increase of 4% over three years.
The company’s model offers consumers different product iterations based on changing capital ratios, terms, and time periods. Interested agents are encouraged to spend some time in the company’s FAQ section.
“Acre’s basic product is 10 percent cheaper than a monthly mortgage and guarantees 10 percent of the total value of your home while you live in it,” the company’s website states. “You also have the option of benefiting from Akure’s premium service, which waives off 50 per cent of the home’s total assessed value as a 10 per cent monthly savings while you live there.”
The National Association of Realtors states that the average time a person lives in a home is just over 12 years. Acre targets buyers who plan to stay for a short period of time, typically 3 to 5 years.
Acre co-founder and CEO Mike Schneider said in a statement that the team is thrilled to have secured the latest investment, “especially given the challenges of the current funding environment.” said.
“We founded this company because buying a home no longer makes sense for a growing number of Americans,” Schneider said. “Compared to home loans, Acre offers an exceptional home buying experience and attractive financial results. This round allows us to expand our reach and influence to even more prospective home buyers. .”
The latest seed round of funding will be directed towards overall growth, the company said. After launching in Raleigh and Durham, North Carolina in 2021, it recently launched its second market in Atlanta.
Email Craig Lowe
