US-based lender Downpayments has entered the Florida market, backed by an impressive $31.8 million in initial debt funding from Partners for Growth and an additional $1 million in equity from Second Century Ventures, the investment arm of the US National Association of Realtors.
The startup’s debut aligns strategically with current market dynamics, where mortgage rates are reaching nearly 8%. Downpayments aims to revolutionize the real estate landscape by offering property investors interest-free down payments on their next home purchase. This innovative approach enables investors to leverage existing equity without the need for refinancing or compromising their current low fixed rates on other properties.
Registered as an in-house brokerage, Downpayments is poised to offer buyer representation services and leverage open banking and artificial intelligence to enhance the management of multiple mortgages. The company plans to utilize its initial capital to facilitate over $200 million in investment property transactions.
Founded by Godfrey Dinh, CEO and founder of Sydney-based Futurerent, which provides similar financing services in Australia, Downpayments addresses what Dinh identifies as “the biggest barrier to creating wealth through property” – access to down payments. Dinh envisions Downpayments as a tool to empower investors on their journey to financial independence, leveraging abundant data and proprietary technology to facilitate one of the most significant purchases in individuals’ lives.
In an industry that has seen limited innovation in this area, Downpayments emerges as a transformative player, driven by a commitment to leveraging data and technology to enhance the real estate investment experience.