The mobile-first platform of Fintor, a next-generation financial startup that makes it simple to invest in real estate, is officially launched on iOS and Android devices. The platform's financing extension, which raised an extra $6.2M, bringing its total investment to $9M, coincides with the release of this information. Public.com, Hustle Fund, 500 Global, VU Ventures, Graphene Ventures, and angel investors, including real estate influencer Manny Khoshbin, Andy Madadian, Cindy Bi, and Invitation Homes co-founder Marcus Ridgway are notable participants in the round.
According to the founder and CEO Farshad Yousefi in an exclusive statement to TechCrunch, the most recent round values Fintor at $80 million. Fintor claims that the company has now raised $9 million in total from investors with the additional funding.
The U.S. Securities and Exchange Commission (SEC) Regulation A qualifies the Palo Alto, California-based corporation to offer investors fractional shares in the real estate it owns. Yousefi noted in an interview that it does this by issuing shares of LLCs that own the underlying properties.
Early in 2021, Yousefi and his co-founder Masoud Jalali founded the business to meet the growing desire they had seen among Gen Z and millennials to invest in real estate. This asset class has historically been out of reach for regular investors who cannot often afford to buy homes in full.
Yousefi claims that Fintor enables its users to purchase real estate for as little as $5. The platform presently provides shares in single-family homes in states including Georgia, South Carolina, Texas, and Alabama. According to Yousefi, the platform intends to expand into 20 other areas by the end of 2022.
Yousefi stated that he intends to develop Fintor into a comprehensive real estate platform by providing investors with multifamily, industrial, and other assets. It's a crowded market with businesses like Landa, Nada, and Arrived Homes, which have all been featured on TechCrunch before, competing to make real estate investing more accessible to everyone.
Yousefi highlighted a few distinctive features of Fintor that make it stand out. First of all, Yousefi added, Fintor operates a secondary marketplace where people can make offers and requests for trades on properties after they have been posted on the platform for more than 90 days. This distinguishes it from many other real estates investing platforms.
Fintor's emphasis on content promoting real estate literacy, which is specially geared to the Gen Zs and millennials that make up Fintor's core client base, is the second differentiation Yousefi emphasized. Yousefi said the app offers tutorials and instructional modules that teach users how to examine real estate deals.
Yousefi said Fintor seeks to maintain a minimal operational footprint. He added that rather than attempting to handle property management internally, the corporation outsources the task to a third-party contractor. Fintor can concentrate only on its core business goal of completing profitable acquisitions and fractionalising those assets to investors by outsourcing property management.
Because the niche is new, Yousefi continued, he is unconcerned about having rivals. He claimed that other businesses are assisting Fintor with its larger goal of informing people about fractionalised investing and spreading the word that it is possible for real estate investments.
Users can buy and sell fractional shares of real estate properties on Fintor, a first-of-its-kind mobile real estate investing platform, for as little as $5. The goal of Fintor is to democratize real estate investing for everyone by giving investors, property owners, and new participants access to liquidity in the real estate markets. Fintor, a leading venture firm with offices in Palo Alto, California, and backed by top firms like Hustle Fund, Graphene Ventures, Public.com, 500 Startups, and Vibe Capital, as well as angel investors like Manny Khoshbin, Cindy Bi, and Marcus Ridgway, was founded by successful businessmen Farshad Yousefi and Masoud Jalali.