Mynd, a startup that promises to make buying and managing single-family rental residences easier for people, revealed today that it has raised $57.3 million in funding from QED Investors.
The funding values the Oakland, California-based firm at $807 million, bringing the total amount raised to $174.9 million since its establishment in 2016. Invesco Real Estate sponsored the company’s last round, a $40 million investment, and has committed $5 billion to Mynd over the next three years to buy and rent 20,000 single-family homes.
Mynd was founded by Doug Brien and Colin Wiel with the purpose of making real estate investing more accessible. The duo has created a platform that allows investors to search, finance, buy, and manage single-family rental residences entirely online.
“We don’t work with partners. Brien told TechCrunch, “We do everything in-house.” “Through our desktop interface and/or mobile apps, we remove geographical restrictions to real estate investment, allowing anyone from anywhere in the country to invest in 25 cities from the comfort of their own home.”
Mynd currently administers over 9,000 rental properties in 25 different areas across the United States. Over the next three years, the company expects to grow to 15 new markets, including Indianapolis, Indiana, and Memphis, Tennessee.
Brien explained that Mynd’s tech offering is complimented by “boots on the ground” personnel in local markets, which improves the company’s speed and clarity of contacts with Mynd inhabitants.
“Plus, it gives our owners complete insight and transparency into the health of their investments,” he added. “We have our own custom-built technology called OTTO, which sets us apart from other organizations. It’s almost like a mashup of Snowflake and Zendesk, but tailored to real estate investing and management.” Mynd added 1,846 properties to its marketplace last year. According to Brien, the company expects to add around 8,500 properties this year, virtually doubling the overall number of homes managed by Mynd year over year. Its largest institutional client is Invesco. Mynd is used by about 4,000 investors on the retail side of the business.
He told TechCrunch, “We believe that investing in single-family home assets is the best way for developing long-term, generational wealth.” “Mynd is dedicated to democratizing real estate, making it accessible to a new generation of investors who were previously frightened by the industry and/or limited by geography.”
As people sought more room to live and work, the epidemic highlighted the urgency of what the company was building, he added. Renting has also grown in popularity as more people want greater flexibility.