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Acre Homes, a company positioning itself as a consumer-driven solution for homeownership, has raised a total of $10 million with the recent closing of an Anthemis-led seed round, as reported by Inman in a December announcement.
The exact amount of the latest funding round was not disclosed, and Inman has reached out to Acre for further details regarding the funding.
Various funds participated in the seed round, including Sovereign’s Capital, Home Technology Ventures, Studio VC, Front Porch Ventures, Unpopular Ventures, Duke Capital Partners, and former CEO of Invitation Homes Fred Tuomi.
Acre’s model revolves around alternative finance, offering equity-building through short-term mortgages of three to five years on homes purchased for clients. It features low down payments, typically around five percent, paid to Acre.
Buyers have the option to purchase the home from Acre after the initial term, apply their “value share” towards the amount, transfer the share to another Acre home, or take it with them upon leaving.
The announcement highlighted that Acre customers on average “saved $9,000 in purchase costs, with an additional projected benefit of $50,000 through ongoing savings and home appreciation.” The latter figure is based on an estimated average annual appreciation of four percent over three years.
The company’s model provides consumers with various product iterations based on shifting equity percentages, terms, and time frames. Interested agents are advised to explore the company’s FAQ section.
“Acre’s base product is 10 percent cheaper than a mortgage per month and guarantees a 10 percent share of the total appreciation of the home while you live there,” the website states. “You will also have the option to benefit from Acre’s premium offering where you forgo the 10 percent monthly savings for 50 percent of the total appreciation of the home while you live there.”
According to the National Association of Realtors, the average homeowner stays in their home for a little over 12 years. Acre targets buyers intending to stay for a shorter period, typically three to five years.
Acre co-founder and CEO Mike Schneider expressed excitement about securing the latest investment, especially in the current fundraising landscape.
“We established this company because buying a home no longer aligns with the needs of a growing number of Americans,” Schneider stated. “Compared to a traditional mortgage, Acre offers an exceptional homebuying experience and compelling financial outcomes. This round allows us to expand our reach and impact for even more potential home buyers.”
The funds from the recent seed round will support general growth, with Acre recently expanding to its second market in Atlanta following its launches in Raleigh and Durham, North Carolina, in 2021.
Email Craig Rowe
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