Mortgagetech company Better.com announced today it has acquired Property Partner, a U.K.-based property investment company, for an undisclosed amount.
Property Partner is a property crowdfunding investment platform that offers users fractional ownership of rental property homes. The company’s investors can select a diversified portfolio of properties to own and receive monthly rental income from those properties that is paid out as a dividend. Since it was founded in 2014, Property Partner has raised $35.2 million and accumulated $194 million (£140 million) in assets under management from its 9,000 users.
“Combining Property Partner’s unique residential property investment platform with Better’s arsenal of homeownership products and services changes the game for the future of real estate investment,” said Better Founder and CEO Vishal Garg. “We’re turning residential real estate into a liquid asset class and changing how families can grow their wealth. Together, we will lower costs, improve convenience, and deliver huge value to all real estate market participants.”
This marks the second U.K.-based company that Better has acquired this summer. In July, the New York-based company bought Trussle, a digital mortgage brokerage company based in London. Both of these moves hint at Better’s potential plans for international expansion. The company currently offers mortgages in 46 U.S. states and Washington, D.C.
Today’s deal comes ahead of the company’s planned SPAC merger, which is expected to close in the fourth quarter of this year, with Aurora Acquisitions Corporation. The deal will value Better at $7.7 billion.
Founded in 2016, Better offers mortgages for home purchases and refinances, real estate agents, title insurance, and mortgage insurance. The company has funded $30.9 billion in home loans and provided over $7 billion in coverage through its insurance products.
Last month, Better launched a cash offer program that allows a customer to buy a home using cash. Better purchases the home on a customer’s behalf, then finalizes the customer’s mortgage after the deal has closed. The buyer can move in as soon as Better finalizes the purchase, but pays Better prorated daily rent until their mortgage is approved and they buy back the home from Better.
Photo by Bethany Opler on Unsplash