By eliminating renovation maintenance costs for one year, Doorvest customers increase cash flow approximately $3.6k per year
Doorvest, a modern, frictionless way to own high-yield rental homes entirely online, today announced it has raised $2.5 million in seed funding, bringing their overall funding to date to $3.6 million. Mucker Capital – a venture capital firm that invests in early-stage software companies – is the lead investor. With the new funding, Doorvest will grow its team and continue to offer the everyday consumer access to investing in the $3 trillion real estate market.
This seed funding comes alongside the launch of Doorvest’s newest offer –– the Home Renovation Guarantee –– designed to deliver certainty and confidence to all Doorvest customers, by guaranteeing all renovation-related repairs and maintenance on investment properties for one year. This year-long guarantee is a first for the real estate investment industry, which offers shorter term guarantees, and comes in tandem with guaranteed tenant placement for one year, meaning customers can anticipate all costs affiliated with their investment upfront.
Doorvest funds a renovation priced between $25,000 and $50,000 for each home, an undertaking that requires extensive planning, coordination, relationship building, and vetting the best general contractors. Following the initial renovation, this one-year guarantee covers the costs for the wear-and-tear, age-related maintenance of the following main components of the home: HVAC unit, roof, flooring, water heater, refrigerator, oven and oven range, microwave, dishwasher, and bathroom hardware (toilet, showerhead, etc.). In the event that the listed items require maintenance or repairs, Doorvest will cover the expenses to fix or replace the items.
"Single-family homeowners should expect to pay 1% – 3% of their home’s value in repair and maintenance costs each year, but depending on the home’s age and condition, these costs can skyrocket. The true cost of hidden repairs and maintenance during the first year of homeownership often comes as a surprise as it’s not initially accounted for and difficult to predict. Likewise, we’ve found that the biggest mental hurdle to purchasing an investment home sight unseen is the uncertainty of maintenance costs and repairs," says Andrew Luong, CEO & Co-Founder of Doorvest. "We’re thrilled to launch the Home Renovation Guarantee to eliminate these concerns and make customers more confident in Doorvest as a partner to build long-term personal wealth. Our ability to offer the Home Renovation Guarantee is a testament to the quality of our renovations, undertaken by vetted contractors and overseen by our team of professionals."
All current and new Doorvest customers qualify for the guarantee, which will come at no additional cost. The one-year guarantee begins on the home purchase date, and applies to every individual property that a customer owns via Doorvest. For existing customers who have already closed on their homes, the start date will be January 27, 2021.
"Doorvest's work to reduce the barrier to entry for the average American to participate in real estate ownership is critical to a functional capitalist economy. While real estate is the #1 most favored investment asset class for Americans (30% preferred over stocks), only 5% of Americans own investment real estate. More importantly, Americans who invest in real estate are on average worth 40x more than those who do not according to the Federal Reserve," says William Hsu, Co-Founder & Partner at Mucker Capital who recently joined Doorvest's board of directors. "Doorvest's platform has really hit a nerve since launch. It has seen a 32% month-over-month increase in customers since the pandemic hit as this entirely online model naturally gains more appeal and customers seek out safe yet easily accessible investment vehicles away from other volatile and inflationary markets."
The company enables customers to own a home, generate 18% average annual return, and all for only $30k as a down payment on average. When factoring in all benefits (passive income, mortgage pay down, appreciation, and tax advantages), customers can generate $55k within 5 years. Doorvest is the only platform that provides complete transparency via a comprehensive breakdown of monthly cash flow, property activity, legal documents, and reports through an investor dashboard.
Doorvest is an entirely-online platform for owning income-producing private real estate. They empower individuals to unlock homeownership, passive income, and equity by simplifying the process of buying and managing an affordable, high-yield rental home. It is the only platform that provides complete transparency via a comprehensive breakdown of monthly cash flow, property activity, legal documents, and reports through an investor dashboard. Learn more at https://doorvest.com/.
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