The company works with homebuyers and their real estate agents to provide home sellers with a guaranteed sale, providing sellers with an all-cash offer regardless of where the buyer is in the mortgage process.
Basically, if a homebuyer can’t close on their mortgage in time, instead of losing out on the house of their dreams, Ribbon will buy and reserve the home on their behalf.
The buyer then rents the home from Ribbon until they get their financing in order.
The program offers appeal for both sides of the deal.
The company is still in its early stages, operating only in a few markets in North and South Carolina, but it has big plans for growth.
Ribbon announced Thursday that it raised $225 million in a combination of debt and equity financing.
The company said that it is “focused on markets where homebuyers are having the hardest time securing their new homes and face stiff local competition from investors and corporate buyers.” The company claims that its process gives homebuyers a greater than a 90% chance of having their offer accepted, while also saving thousands of dollars in cash discounts and receiving a 100% on-time closing.
“Buying a home is a milestone to be celebrated and enjoyed.
“For the first time, we are bringing simplicity to the real estate transaction by absorbing all risk, so buyers, sellers and Realtors can focus on the joy of the home buying and selling experience.” And Ribbon is free to homebuyers.
“Unlike other valuation tools, Ribbon backs their valuations by committing to buy the home up to the Ribbon Max Value.” According to the company, which does not list its management or executives on its website, the company is led by “top technology and real estate professionals from major startups, such as LendingClub, Airbnb, Spotify, Twitter, Blue Apron, Invitation Homes and American Homes for Rent.” In this latest round of funding, the company received money from existing investors Bain Capital Ventures, Greylock, NFX, and NYCA, but the company did not provide any more financial details beyond that.