Real Estate Marketplace for Sellers of Distressed Property Raises Funding to Expand into New Markets
San Francisco, CA, June 30, 2020 — Sundae, a residential real estate marketplace focused on helping sellers of distressed property get the best price for their home through a reliable and worry-free process, has raised $16.55 million in Series A funding. The round was led by QED Investors, with additional participation from Founders Fund, Susa Ventures, as well as a number of high profile Real Estate and FinTech investors and entrepreneurs.
Sellers of dated or damaged properties are often vulnerable and exploited in the process of selling a home that requires investment in renovations and repairs before a new family can move in. Sundae offers sellers a reliable and trusted way to sell effortlessly and without doing any work to the property. Instead of talking to multiple small mom and pop property investors to find the right buyer, Sundae does the hard work for them ensuring the property is exposed to thousands of qualified buyers to secure the maximum amount investors are willing to pay.
“For far too long, home sellers without the time or resources to get a house market-ready have been taken advantage of,” said Josh Stech, Sundae Co-Founder and CEO. “Many property investors are known for predatory tactics that hurt sellers when they need help the most. We started Sundae to right this wrong, to be the advocate for this segment of home sellers by ensuring they get a fair price for their home and peace of mind for themselves and their families.”
With Sundae there are no closing costs or agent fees, and homeowners can skip the hassle of home repairs, cleanings, and showings. Sundae also provides a $10,000 cash advance before closing to help homeowners with moving costs or other expenses. Homeowners can close in as quickly as 10 days and can choose to remain in the home for weeks after the sale.
Since launching in January 2019 Sundae has grown to become the second largest home buyer in the markets it serves across Southern California and has helped hundreds of sellers get a better outcome. With this new funding, Sundae plans to expand to new markets across the U.S. to help more homeowners in need.
“The distressed residential real estate market is ripe for innovation, especially now,” said Frank Rotman, founding partner at QED Investors. “There is a huge unmet need for solutions that make the selling process more efficient and transparent. As a team of operators, we’re excited to work with the Sundae team to build out their footprint, support their rapid growth and deliver a sorely-needed customer-centric approach to the market.”
In addition to providing a marketplace to connect sellers of distressed property to the best buyer, Sundae also operates as a property investor and will purchase, renovate and resell properties through its resale brokerage Sundae Homes.
Sundae’s mission is to help homeowners get the best outcome when it’s time to sell a house that needs some love. Many sellers don’t have the time or resources to invest in repairs and cleaning to get the home market-ready. We started Sundae to help sellers in this situation by offering a worry-free alternative to the traditional real-estate agent sales process.
Founded in August 2018 by veteran real estate and marketplace executives Josh Stech and Andrew Swain, Sundae’s team brings a combined 250+ years of local real-estate experience. Sundae is headquartered in San Francisco, CA and with regional headquarters in Manhattan Beach, CA and Atlanta, GA.