High population growth areas like Phoenix are struggling to keep up with the real estate market’s demands because of low inventory. To help close the housing gap in the U.S. and bring properties to the market faster, Stoa’s iBuyer platform, FlipOS, focuses on helping professional real estate investors acquire and flip residential properties at an accelerated rate.
There are more than 300,000 single-family homes being renovated each year by real estate investors. However, the current business model for getting these homes to market has a long lag time. Through innovations in property technology (“prop tech”), professional real estate investors can now add inventory to the market faster.
Real estate investors face challenges in the unknown: what renovations will be needed, whether or not there will be any surprises that pop up, and how long it’ll take to close on a property. These variables can prevent them from scaling their businesses fast, and they may be unable to begin or continue projects to help meet the market’s demand.
We designed FlipOS to address these challenges.
On the prop tech platform, investors input addresses of qualifying homes they want to purchase or have purchased, accept both financing and upfront sales offers, and get a detailed scope of work for renovations. Stoa commits to purchasing the property and closing within five days after renovations are done. The process makes it four times faster than existing business models and can help investors double their annual deal volume.
Often, investors buy unlivable properties, and renovating them adds quality inventory to the market. These renovations are key when flipping as there are specific areas home buyers usually want upgraded — particularly the kitchen and bathrooms. When an investor partners with FlipOS, each house comes with a scope of work that provides details on what to renovate, helping flippers complete the project faster and to industry standards — and with less cash and effort.
One of the hardest parts of the residential real estate market is not knowing how long a property will sit on the market and whether it will get fair market value. That can tie up investor funds when they’re paying the mortgage while the house is waiting to sell. FlipOS reduces the time to flip by 80%, so there is faster capital recycling and more revenue opportunities for the investor.
FlipOS by Stoa has already seen tremendous success with its prop tech. Currently operating in major growth markets, the company plans to expand into new U.S. markets with significant housing gaps and deepen existing partnerships with the real estate community in current markets, including Phoenix.
Or Agassi and Tom Sella are the co-founders of FlipOS by Stoa.
Did You Know: Through FlipOS, pre-existing properties are transformed into affordable single-family homes by partnering with professional home-flippers.
Photos courtesy of FlipOS
