Selling a distressed property can be a challenging and cumbersome process, fraught with risks and uncertainties. Traditional real estate agents may not have the expertise or resources to handle these types of properties.
Moreover, many homeowners may feel vulnerable to predatory practices by unscrupulous buyers who seek to take advantage of their distressed situation. This is where Sundae comes in.
Sundae is an online real estate platform that connects distressed homeowners with pre-vetted investors, who offer fair cash offers for quick sales. In this article, we delve into the fascinating world of Sundae, exploring its founding story, its unique value proposition, and how it works.
Overview of Sundae
Sundae is an online real estate platform that focuses on distressed properties. It was founded in 2018 by Josh Stech and Andrew Swain, who are both experienced real estate professionals.
The platform aims to disrupt the traditional real estate industry by providing a safe and transparent marketplace for distressed homeowners and pre-vetted investors. The concept behind Sundae is simple: distressed homeowners can sell their properties quickly and efficiently to pre-vetted investors who offer fair cash offers.
This allows distressed homeowners to avoid the hassle and uncertainty of working with traditional real estate agents who may not have the expertise or resources to handle these types of properties. Sundae’s marketplace model ensures that distressed homeowners have access to a wider pool of investors, which increases competition and improves pricing.
Investors benefit from the platform’s pre-vetted process, which ensures that they invest in quality properties that have real potential for profit.
Problem addressed by Sundae
The traditional real estate industry is rife with predatory practices, especially when it comes to dealing with distressed properties. Unscrupulous buyers may seek to take advantage of homeowners who are desperate to offload their properties quickly.
This often results in homeowners getting a raw deal, with the buyers making a significant profit at their expense. Sundae addresses this problem by creating a safe and transparent marketplace, where distressed homeowners can work with pre-vetted investors who offer fair cash offers.
This ensures that homeowners get a fair deal for their distressed properties, without having to worry about being taken advantage of. Moreover, Sundae gives distressed homeowners an advantage by offering a free property visit by an experienced customer advisor who can provide a professional evaluation of the property.
This enables homeowners to make informed decisions about selling their properties, based on a realistic assessment of its current condition and potential for profit.
How Sundae works
Sundae’s process is simple and straightforward. Once a distressed homeowner contacts Sundae, they are assigned a dedicated customer advisor who coordinates a free property visit.
The advisor conducts an evaluation of the property, takes high-quality photos, and prepares a detailed marketing package for investors. Sundae then lists the property on its marketplace, where pre-vetted investors can submit cash offers.
The distressed homeowner has full control over the selling process, and can choose to accept or reject any offer. Once they accept an offer, the transaction is completed within a matter of days, and the homeowner receives the cash amount agreed upon.
Sundae’s process is designed to be quick and hassle-free, with no hidden fees or commissions. The distressed homeowner can sell their property quickly, without having to worry about repairs, inspections, showings, or closing costs.
Founding Story of Sundae
Background of Sundae’s founders
Josh Stech and Andrew Swain, the founders of Sundae, are both experienced real estate professionals with a passion for disruption. Josh is an entrepreneur and investor who co-founded LendingHome, a leading online mortgage lender.
Andrew is a former hedge fund manager and real estate investor who is an expert in package properties for investors. Their combined experience and expertise in real estate provided the perfect background to create a disruptive platform like Sundae.
Journey from LendingHome to Sundae
Josh Stech and Andrew Swain founded Sundae in 2018, after identifying the need for a safe and transparent marketplace for distressed homeowners and pre-vetted investors. Their experience with LendingHome, a venture-backed startup that pioneered the online mortgage industry, provided valuable insights into how to disrupt an unregulated industry.
The journey from LendingHome to Sundae was not straightforward, as the founders had to navigate the challenges of building a disruptive platform in a heavily regulated industry. Nevertheless, they persevered, and Sundae became a reality in 2018.
Funding and growth of Sundae
Sundae’s success has been fueled by a series of funding rounds, including a seed round, Series A funding, Series B funding, and Series C funding. The platform has also expanded its market presence, with operations in multiple states and plans for further expansion.
Sundae’s success can be attributed to its unique value proposition, which addresses a critical need in the real estate industry. By providing a safe and transparent marketplace for distressed homeowners and pre-vetted investors, Sundae has created a win-win situation that benefits both parties.
Conclusion
In conclusion, Sundae is a disruptive platform that addresses a critical need in the real estate industry. By providing a safe and transparent marketplace for distressed homeowners and pre-vetted investors, Sundae has created a win-win situation that benefits both parties.
The platform’s unique value proposition, coupled with its founders’ experience and expertise, has propelled it to success and fueled its growth. As the real estate industry continues to evolve, Sundae is poised to disrupt it further and create more value for its customers.
How Sundae Makes Money
Sundae’s business model revolves around connecting distressed homeowners with pre-vetted investors. The platform generates revenue in a variety of ways, including buyer fees, subscriptions, interest, and flipping homes.
Buyer Fees
When an investor purchases a property through Sundae, they are charged a buyer fee of 5-7% of the purchase price. This fee covers the closing costs and property expenses associated with the transaction.
Sundae’s buyer fees are competitive with traditional real estate agent commissions, and investors benefit from the convenience and transparency of working with the platform.
Subscriptions
Sundae also offers an exclusive Edge program, which is a subscription model that gives investors access to premium deals and services. Investors pay a monthly or annual subscription fee, which gives them access to high-quality distressed properties before they are listed on the public marketplace.
The Edge program also provides additional services, such as exclusive market data, analytics, and investment insights. For investors who are serious about investing in distressed properties, the Edge program offers a unique value proposition that can help them stay ahead of the competition.
Interest
Sundae also generates revenue through interest charges on financing options, such as loans and other forms of financing. Sundae Funding is a subsidiary of Sundae that provides financing to investors who are looking to invest in distressed properties.
Sundae Funding offers flexible financing options with competitive interest rates, which makes it an attractive choice for many investors. Financing options help Sundae to ensure that investors can purchase distressed properties on their platform, even if they do not have the full cash amount required for the purchase.
Flipping Homes
Sundae Homes is another subsidiary of Sundae that focuses on flipping distressed properties. Sundae Homes purchases distressed properties, renovates them, and then resells them for a profit.
Sundae Homes generates revenue from the difference between the purchase price of the distressed property and the resale price. This model allows Sundae to leverage its expertise in the distressed property market to generate additional revenue and build its brand.
Sundae Funding, Revenue & Valuation
Sundae has been able to attract significant venture funding, with a total of $135 million in funding to date. Some of Sundae’s investors include Fifth Wall, Founders Fund, QED Investors, and General Globe Capital.
This funding has allowed Sundae to grow rapidly and expand its market presence. Sundae is currently privately owned, with its founders, Josh Stech and Andrew Swain, holding a significant stake in the company.
The shareholding structure is not publicly disclosed, but it is believed that the founders hold a significant stake in the company, while institutional shareholders hold the remainder. Sundae’s revenue and valuation are not publicly disclosed, but the platform has generated significant interest from investors due to its disruptive business model and rapid growth.
Sundae is expected to continue to grow rapidly in the coming years, as the real estate industry continues to evolve and more distressed homeowners seek out safe and transparent selling options.
Conclusion
Sundae’s business model is designed to disrupt the traditional real estate industry by providing a safe and transparent marketplace for distressed homeowners and pre-vetted investors. The platform generates revenue in a variety of ways, including buyer fees, subscriptions, interest, and flipping homes.
Sundae has attracted significant venture funding, and its founders hold a significant stake in the company. As the real estate industry continues to evolve, Sundae is expected to continue to grow rapidly and disrupt the industry even further.
In summary, Sundae is an online real estate platform that provides a safe and transparent marketplace for distressed homeowners and pre-vetted investors. The platform generates revenue through buyer fees, subscriptions, interest, and flipping homes.
Sundae has attracted significant venture funding and is privately owned, with its founders holding a significant stake in the company. Sundae’s unique value proposition and disruptive business model have enabled it to grow rapidly and reshape the traditional real estate industry.
Overall, Sundae is an important player in the evolving real estate landscape, and its success highlights the growing demand for safe and efficient selling options for distressed homeowners.