reAlpha closes $ 6 million funding round to invest in the short-term rental market
Ireland / United States: Digital market reAlpha, which is launching an innovative platform designed to facilitate investment in the $ 1.2 trillion short-term rental market, has announced it has closed a $ 6 million investment round.
The main investor in the tour was the real estate holding company Crawford Hoying, which has developed more than $ 1.3 billion in mixed-use, multi-family, office and retail buildings in the past five years alone.
Brent Crawford, Founder and Director of Crawford Hoying, said: “The data-driven approach of reAlpha is a paradigm shift for the short-term rental investment market. The proprietary technology developed to identify, acquire and market low risk properties is a big step forward.
“We firmly believe in the team’s conviction and vision to make it a leader in this field,” he added.
The new funding is intended to accelerate the growth of reAlpha, including investment in its platform, data science function and engineering capabilities. The proceeds will also be used to expand its geographic presence, operations and member network.
ReAlpha CEO Giri Devanur said: “reAlpha enables superior alpha returns by investing in short-term rental properties. We have simplified the entire process of investing and managing these properties using cutting edge technology. This allows “Mainstreet” investors to access the real estate investment market like never before. “
According to reAlpha, a new wave of real estate investment opportunities are emerging, spurred by the increased desire for short-term rentals and private housing during the pandemic. The company says its model allows consumers to benefit from both higher returns from short-term rental income and increased property value through renovations and appreciating market conditions, while investors can invest in vacation homes through the reAlpha network, democratizing market access.
In June, it was announced that the Ohio-based company plans to spend up to $ 1.5 billion, including debt, to acquire a portfolio of short-term rental housing on an unprecedented scale.
Talk to Bloomberg at the time, Devanur said the money would be enough to buy around 5,000 short-term rental homes. The company initially plans to focus on buying 100 to 500 properties in U.S. cities such as Austin, Dallas and Miami, as well as discounted homes when a federal moratorium on foreclosures ends.