Backflip Raises $184M to Scale Residential Transition Loans

Author

Slice of Real Estate Team
October 18, 2024

Key Highlights:

  • Backflip raises $184M for residential transition loans, supporting real estate entrepreneurs.

  • Company triples origination volume year-over-year, reaching a $375M run rate.

  • $30M in equity raised through joint ventures and private credit funds, with $154M in asset-backed financing.

  • Partnership with Setpoint and ECMC enhances funding capacity, boosting real estate investment opportunities.

  • RTL securitizations up 546% in 2024, signaling growing institutional interest.

Notable Quotes:

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“Raising these private credit vehicles and the warehouse facilities allows Backflip to offer ever-improving capital products to our members doing the important work of rejuvenating obsolete homes.”

Jake Rome, Co-Founder and COO at Backflip
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“There is a clear market need to support local real estate entrepreneurs with technology and capital products – Setpoint is enthused about partnering with Backflip and contributing to the solution.”

Michael Lam, Co-Founder and CIO at Setpoint

Our Take:

Backflip's latest capital raise demonstrates the growing confidence in real estate transition loans (RTL) and the company's ability to provide scalable solutions to real estate entrepreneurs. Despite challenges in the housing market, Backflip’s impressive growth trajectory and the substantial institutional backing for RTL securitizations reflect the sector's attractiveness. The platform’s integration of advanced technology and customized capital products positions it well to continue empowering investors looking to rejuvenate the housing market while driving strong financial returns.