Sundae, a residential real estate marketplace for dated and distressed properties, has raised $16.55 million in Series A funding, the company announced on Tuesday.
Led primarily by QED Investors, the funding round also received participation from Founders Fund, Susa Ventures and several other real estate and FinTech investors.
Dated or damaged properties can often be more challenging investments for sellers to market. Sundae says its marketplace exposes these properties to thousands of qualified buyers to reduce the legwork of investors.
“For far too long, homesellers without the time or resources to get a house market-ready have been taken advantage of,” Josh Stech, Sundae Co-Founder and CEO, said in a statement. “Many property investors are known for predatory tactics that hurt sellers when they need help the most. We started Sundae to right this wrong, to be the advocate for this segment of homesellers by ensuring they get a fair price for their home and peace of mind for themselves and their families.”
Sundae, a company that launched in January 2019 and services areas of Southern California, does not charge closing costs or agent fees. The company gives homeowners a $10,000 cash advance before closing to help offset moving costs and other expenses related to a sale. Sundae boasts that homeowners can close as quickly as 10 days and may opt to stay in the home for weeks after the sale if needed. Its resale brokerage, Sundae Homes, also purchases, renovates and resells properties.
With Series A funding completed, Sundae aims to expand to new markets across the U.S.
“The distressed residential real estate market is ripe for innovation, especially now,” Frank Rotman, founding partner at QED Investors, said in a statement. “There is a huge unmet need for solutions that make the selling process more efficient and transparent. As a team of operators, we’re excited to work with the Sundae team to build out their footprint, support their rapid growth and deliver a sorely-needed customer-centric approach to the market.”