PhotoLtd., a company that aims to make it easier for people to buy and manage single-family rental properties, today announced that it has raised $57.3 million in funding from QED investors.
The funding values the Oakland, California-based company at $807 million, and the total amount of the company since its 2016 inception has reached $1,74.9 million. Invesco Real Estate led its previous round, raising $40 million, and $5 billion committed To buy and rent 20,000 single-family homes through Mind over the next three years.
Doug Bryan and Colin Weil started Mynd with the goal of making real estate investing more accessible. Pair has built a platform for investors to find, finance, purchase and manage single-family rental properties – 100% remotely.
“We do not outsource to partners. We do all that in-house,” Brian told Nerdshala. “We remove geographic barriers to real estate investment, making it possible to invest in 25 cities from anywhere in the country – all from the comfort of home through our desktop interface and/or mobile app.”
Currently, Mynd manages over 9,000 rental units in 25 markets across the country. The startup plans to expand to 15 additional markets over the next three years, including Indianapolis, Indiana, and Memphis, Tennessee.
Brian said Mynd’s tech product is complemented by “shoes on the ground” people in local markets, improving the speed and clarity of communication that the company can provide to Mynd residents.
“Plus it provides total visibility and transparency for our owners about the health of their investments,” he said, “Unlike other companies we have our own purpose-built system called OTTO. It’s almost like ‘Snowflake Meets Zendesk. ‘ As is – but custom-built for real estate investing and asset management.”
Last year, Mynd added 1,846 homes to the platform. This year, it’s on track to add about 8,500, both retail and institutional — enough to nearly double the total number of homes managed by Mynd year over year, according to Brian. Invesco is its largest institutional client. In their retail sector of business, there are about 4,000 investors using Mynd.
“We believe that investing in the single-family residential asset class is the best route to building long-term, generational wealth,” he told Nerdshala. “Mind is committed to democratizing real estate – making it accessible to a whole new crop of investors who were previously too intimidated and/or constrained by geography.”
The pandemic underscored the urgency of building the company, he said, as people sought more places to live and work. Renting also became more common as more people wanted more flexibility.
Mynd plans to use its new capital to continue upgrading its digital platform, which it says is powered by “an extensive proprietary dataset.” It also plans to enhance its automated workflow engine, underwriting, mobile applications and omnichannel communications. The startup also plans to hire and expand into new markets.
Currently, Mynd has 568 employees, up from 366 a year ago today.
QED partner Chaki Reddy said the Mynd team was “one of the best” his firm had in the single-family rental market with a “purpose-built” tech stack designed specifically for such properties.
“They have a customized offering that is better than anything on the market today,” he said.
In general, QED believes that the single-family rental property class is one of the fastest growing in the country, “because of how big the housing market is, the need and desire for the product, and the tremendous amount of capital formation we did then.” The last financial crisis,” according to Reddy.
“There is a dearth of quality, affordable single-family rental housing, and Mind has the technology to manage this asset class,” he said.