- The $6 million investment round was led by Crawford Hoying, a real estate holding company with more than $1.3 billion of mixed-use, multifamily, office, and retail properties
- The company is taking advantage of the new wave of investment opportunities in the emerging industry Airbnb has created
- Equity in reAlpha properties can be purchased for as little as $2,500 and handled much like buying stock in a company. Investors are matched with like-minded backers to cover the down payment on properties
reAlpha, often referred to as the Robinhood of Airbnb investments, recently announced that it has closed on a $6 million investment round. The lead investor of the round was real estate holding company Crawford Hoying, which has developed more than $1.3 billion of mixed-use, multifamily, office and retail properties.
The new funding that reAlpha has received is set to accelerate the company’s growth, including its innovative short-term rental investment platform, data science function, and engineering capabilities. Proceeds will also be used to expand reAlpha’s geographical presence, operations, and member network (https://nnw.fm/iE39B).
“reAlpha enables superior alpha yield by investing in short-term rental properties. We have simplified the entire process of investing and managing these properties using advanced technologies. This allows ‘Mainstreet’ investors to access the real estate investment market like never before,” said reAlpha CEO Giri Devanur.
The founder of Crawford Hoying, Brent Crawford, called reAlpha’s proprietary technology a paradigm shift for the short-term rental investment market. “The proprietary technology developed to identify, acquire, and market properties with lower risk is a big leap. We strongly believe in the team’s conviction and vision to scale this into a leader in this space,” he said.
Based on statements by reAlpha, a new wave of investment opportunities in the real estate industry is emerging, spurred by the heightened desire for short-term rentals and private accommodations which have only been accelerated post-pandemic.
reAlpha’s model allows consumers to benefit from the superior returns of short-term rental income and the increase in property value through renovations and market appreciation conditions. Investors can invest in these short-term rental and vacation homes through the company’s platform and partner broker-dealer site, democratizing the market’s access.
For an investment of as little as $2,500, first through the reAlpha app and then connected through to a broker dealer site, investors can purchase equity in a specific reAlpha property, much like buying stock in a company. The company matches members with other like-minded backers to form a syndicate, together covering a down payment on the property that has been selected. Most investment properties require a 25 percent down payment, but with reAlpha, that reduces to 10 percent because of the relationships the company has developed and nurtured with lenders.
The company handles all property management functions and believes that short-term rentals are no longer just for transactional purposes. reAlpha reimagines the entire guest experience end-to-end, making sure that reAlphaHouse is the ultimate on-demand rental property.
Targeting specific markets across the globe, reAlpha’s preference is to purchase 100 to 500 of these short-term rental properties in each market. When acquiring the properties, reAlpha uses its artificial intelligence technology “reAlphaBRAIN” to select specific unicorn properties — zeroing in on the best available opportunities in the market. The software quickly evaluates thousands of property listings based on 25+ factors, assigning each a reAlphaScore. The score projects how Airbnb-viable the property is, including the projected value in the property market.
Through its innovative platform and unique approach, reAlpha is set to secure a leading position for itself and its members in the global short-term rental market. According to Airbnb’s recent IPO filing, the global short-term rental market is valued at $1.2 trillion.
The global vacation rental segment is anticipated to expand at a CAGR of 3.4 percent from 2020 to 2027, and reach $113.9 billion in 2027, with millennials being the primary driving force of this growth (https://nnw.fm/ITq7X). Research has indicated that 71 percent of those traveling, especially with kids, prefer to cook their meals while traveling, which is a major reason for the vacation rental market boost.
For more information, visit the company’s website at www.reAlpha.com.
NOTE TO INVESTORS: The latest news and updates relating to reAlpha are available in the company’s newsroom at https://nnw.fm/reAlpha
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