Seattle-based real estate startup Flyhomes has secured $15 million in new funding to bolster its strategic shift from a consumer-facing real estate platform to a business-to-business financial product provider. The company is now emphasizing its wholesale lending service, “Buy Before You Sell,” which is designed to assist homeowners in purchasing a new property before selling their current one.
Rather than catering directly to homebuyers, Flyhomes now collaborates with loan officers and real estate professionals who offer the company’s products to their clients. This marks a significant transformation for Flyhomes, which launched in 2016 and has navigated multiple layoffs in recent years due to rising interest rates and changing market conditions. So far, the startup has raised $208 million in equity and has facilitated over $7 billion worth of real estate transactions. In 2021, it secured a $150 million Series C round.
Originally known for helping buyers make stronger offers by providing upfront funds, Flyhomes introduced its “Buy Before You Sell” product early in its growth phase, gaining popularity in the Seattle startup community. Previously, the company provided services directly to consumers in specific metro areas, integrating real estate brokerage with financing options. Now, with its wholesale strategy, Flyhomes can extend its “Buy Before You Sell” program to any location where it has a lending license—currently 40 states, with plans to expand.
The model works by obtaining a backup offer on the homeowner’s existing property, effectively removing mortgage liabilities from their debt-to-income ratio. This enables buyers to utilize their home equity for the down payment on their next purchase. As part of this strategic pivot, Flyhomes recently sold its consumer search platform and associated tech assets to The Real Brokerage. Backers in the new Series D funding round include Andreessen Horowitz, Norwest, Canvas Ventures, Camber Creek, Al Goldstein, and Mark Vadon.
According to COO Adam Hopson, the company is seeing notable growth in both loan volume and revenue, an encouraging sign that supported investor confidence in the wholesale model. Flyhomes earns revenue by charging interest and fees on its financial offerings, though the interest is primarily passed on to its lending partners. To sustain lending activities, it also secured a $200 million warehouse lending facility.
While the company did not disclose revenue or employee numbers, Hopson acknowledged the main challenge ahead is market visibility. “The biggest opportunity right now is awareness, many loan officers, agents, and buyers still don’t know about our solutions,” he noted. “We’ve built something better, but it takes time to educate the market.”
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