Business

$22M Raised by Simply Homes to Help US Housing Crisis

$22M Raised by Simply Homes to Help US Housing Crisis

Simply Homes has raised $22 million in funding to boost US Affordable housing.

The company focuses on unused homes and is making easier the overall housing procedure. The company aims to address housing shortages faced by lower-class families.

Every step, from acquisition, renovation, and leasing is being optimized by the company.

Interestingly, over 80% of Simply Homes’ tenants are single parents, who would need to put in 150 hours of work per week to pay market-rate rent for a house.

With an emphasis on social and economic mobility, the company plans to expand into more midwestern markets in 2024. Its goal is to improve its capacity to recognize and fund properties and communities that require assistance by creating virtual analysts driven by artificial intelligence.

CEO Brian Bagdasarian said, “When we buy into a neighborhood, we are investing in the community. We offer renovated homes, not just as shelter, but as a foundation for family growth and economic stability to address America’s housing crisis. Children that are able to move into lower-poverty neighborhoods can see a 31% increase in lifetime earnings. We’re making those meaningful changes, one family at a time.”

The funding is provided by the following companies-

  • Gutter Capital
  • Watchung Capital
  • Village Global
  • Ambush Capital
  • RavenOne Ventures

Many individuals also helped with the process. Investors like Neil Parikh, Gabe Flateman, and Luke Sherwin also showed interest in the company and its goal.

By collecting rent, Simply Homes partially subsidizes the expense of property management. To manage the portfolio, there is a transaction fee and a 3% annual fee.

With an operating company/property company structure, Simply Homes sources, acquires, renovates, and manages properties through its operational teams and its technology platform. They are long-term tenants of the property management company.

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