The startup is wagering that as widespread pandemic-induced unemployment continues to grow, homeowners will consider tapping into home equity.

Home sales and leaseback company EasyKnock has raised $20 million in anticipation of renewed demand for homeowner equity, the Real Deal reported.

The New York-based startup allows homeowners to tap into the equity on their homes by buying the property and renting it back to them as tenants. Since launching in 2016, EasyKnock has raised $103 million in seed funding and $215 million in Series A debt-equity funding.

The Series B funding round was led by existing investor Blumberg Capital and QED Investors. FJ Labs, Correlation, Moderne, 7BC and Interplay also provided funding. Homeowners who use EasyKnock end up receiving around 70 percent upfront equity cash-out while paying a market-rate monthly rent, a 1.5 percent transaction fee, and a 2 percent closing fee — a costly solution for homeowners who need cash fast.

EasyKnock

“There are occasions where homeowners are forced to choose between their home and their finances,” EasyKnock CEO Jarred Kessler said in a press statement. “We enable consumers to monetize their equity and take control of their future.”

The latest announcement comes at a time when unemployment is at an 80-year high and many people are looking for different ways to tap into their finances. As the pandemic and unemployment rage across the U.S., EasyKnock anticipates that its leaseback solution will be chosen as an option by more homeowners.

Email Veronika Bondarenko

technology
Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Hear from Realogy, Pacaso, SERHANT., Spotify, Redfin, Douglas Elliman, and 100+ more leaders at ICNY.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription