SANTA CLARA, Calif. – Home365, a Santa Clara, Calif.-based PropTech/InsureTech residential Real Estate investment and property management company, announced the closing of a $16.3 million funding round.
This round was led by Greensoil PropTech Ventures II (GSPV II), and also included investments from existing shareholders such as Eyal Ofer, O.G. Tech, Verizon Ventures, Lool Ventures and North First Ventures (N1V).
Home365, which has raised $24 million since its 2016 founding, makes the fully automated Property Management platform behind the company’s innovative OneRate business model, which is completely disrupting the traditional property management industry.
Powered by a machine-learning proprietary underwriting (patent pending) engine, Home365 predicts maintenance, repairs, and various resident-related events, while generating a fixed monthly Premium fee that guarantees the Net Operating Income (NOI) for a given asset.
By offloading risk from landlords, and through end-to-end automation of processes, predictive analytics and a unique management approach, Home365 delivers investors a fixed and guaranteed monthly return on investment, making the entire investment in real estate much more profitable, predictable and passive.
“Home365 provides PropTech optimization for small and medium-sized property owners by boosting margins, reducing risk and diminishing the unpredictability that comes from owning and operating smaller-sized rental portfolios,” said Daniel Shaked, Home365’s founder and CEO. “Being focused on delivering passive and predictable financial results, Home365 in fact invented a new Asset Class that transforms the risky nature of being a real estate investor into an all accessible ‘savings account’ experience.”
“In Home365, we see a partner with the kind of proprietary technology and underwriting software that can disrupt the property management market and deliver game-changing results for cost-control, efficiencies and asset-value maintenance,” said Gideon Soesman, GSPV’s co-founder and Managing Partner, and a new Home365 Board Member. “We also see a huge opportunity to leverage Home365 to distribute more efficient, carbon-reducing products and services into a large number of single-family homes.”
Based in Toronto, GSPV is a leading PropTech venture capital firm investing in transformative property technologies in North America, Europe and Israel. Building on its momentum, Home365 also announced the acquisition of SlateHouse Property Management and Realty, one of the largest and fastest-growing scatter-site property management companies in the U.S.
This acquisition was announced at the first ever Real Estate Hackers Conference, bringing together tech and real estate enthusiasts from around the world, in Lancaster, Pa. Building an investor-centric concierge service, Home365 now has a 40-agent Realty division that facilitates the buying and selling of investment properties across all of the combined Home365 markets.
These realtors make use of Home365’s proprietary evaluation tools to give investors a better understanding of the investment potential for a property based on the location, building, tenant mix and much more.
“SlateHouse and Home365 create an incredible combination of real estate investing talent and proprietary technology to provide better returns for investors, and the needed funding to create a better experience for tenants and owners,” said Chad Gallagher, co-founder of SlateHouse, who will be now assuming the role of Chief Investment and Growth Officer within Home365. “We are incredibly excited to get the Home365 tech platform out to thousands of investors and disrupt the very traditional field of real estate investment and property management.”
One of the largest mergers in the history of property management, Home365 now manages 7,000 units across six states with local offices in 14 major metro areas including Las Vegas, Atlanta, Philadelphia, Pittsburgh, Lancaster, Harrisburg, York, Reading, Scranton, Allentown, Trenton, Norfolk, Hampton and Baltimore. The properties Home365 manages are worth more than $1 billion.
“This unique combination of expertise creates an amazing opportunity for investors to diversify their portfolio across many different regions while working within one platform that delivers predictable results,” added Nate Jones, co-founder and SlateHouse CEO, who will be assuming the role of a Chief Operating Officer for Home365, focusing on supporting the company’s rapid scaling to over 100,000 units under management in the next few years.
Home365 expects to use the recent funding to accelerate its end-to-end technology platform for a better experience for investors and tenants. Home365 also will use the funding to accelerate and fuel its expansion based on strong demand for its technology into more of the top 100 markets across the United States.
Shaked added, “Leveraging the amazing team, investment and scaling expertise of SlateHouse, alongside GSPV’s deep experience in PropTech, we are confident that Home365 is on track to becoming the largest and fastest-growing real estate investment and property management company nationally and globally.”