Flipping houses, often glamorized on HGTV, is an endeavor that demands more than just enthusiasm. Recognizing the complexities involved, startup Backflip aims to simplify the process by offering innovative borrowing solutions for real estate investors. Founded in 2020, Backflip provides a platform for securing short-term loans and offers a suite of tech tools to streamline investment processes, akin to a fusion of Zillow and Shopify.
Backflip’s subsidiary, Double Backflip, LLC, facilitates loan origination, boasting a team that includes former employees of digital mortgage lender Better.com. CEO Josh Ernst, a seasoned investor, emphasizes Backflip’s role in helping investors make informed decisions by sourcing properties, analyzing deals, and curating investment pipelines.
Despite launching amid challenging market conditions, Backflip witnessed significant growth, achieving nearly 5x revenue growth in 2023 and reaching an annualized revenue of $10 million. Now, with a $15 million Series A funding led by FirstMark Capital, along with participation from existing backers and angel investors, Backflip aims to further expand its offerings and scale its operations globally.
Backflip’s platform facilitates the analysis of billions of dollars in properties monthly and has funded over 900 homes since its launch. Users have realized substantial profits per property, with most loans repaid within six months. While Backflip’s loans carry higher interest rates than traditional residential loans, they offer investors flexibility in repayment options, including selling or refinancing the property.
The company’s innovative approach involves underwriting business plans, assets, and individuals, rather than solely relying on W-2 income. Backflip’s marketplace model generates revenue through loan origination, operating by partnering with capital providers and taking a percentage of the loans.
Adam Nelson of FirstMark sees immense potential in Backflip, considering it as the operating system for a market worth over $100 billion annually. With 47 employees and headquarters in Dallas and Denver, Backflip is poised to continue revolutionizing real estate investment through technology and innovative financing solutions.
