There’s a new real estate startup that is buying homes directly from homeowners, but unlike direct buyers like Opendoor and Offerpad and real estate giants like Zillow and Redfin, which focus on buying homes from sellers, Ribbon is buying homes for buyers.
Ribbon, which is currently operating in the Carolinas, offers a novel concept. 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. Sellers get a guaranteed cash offer and buyers don’t have to worry about losing the house they want because their funding is slowed for whatever reason.
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.
And now, the company has some serious financial backing to power that growth.
Ribbon announced Thursday that it raised $225 million in a combination of debt and equity financing. According to the company, it plans to use the money to expand into 10 new markets by the end of 2019 and more markets after that.
The company launched in Charlotte, North Carolina,…