Property management firm buys Irvine-based HomeUnion




During the depths of the housing slowdown a decade previously, two Orange County entrepreneurs based mostly a web startup in the hunt to be a matchmaker for merchants and rental houses.

Irvine-based HomeUnion helped mom-and-pop landlords from California, New York and elsewhere buy houses sight-unseen in cities like Atlanta, Austin, and Tampa, the place prices are low nonetheless rent is relatively extreme. Their plan was to supplier affords that give merchants a bigger “cash-on-cash” return than they will get looking for properties in high-cost markets like Southern California.

This week, one different high-tech precise property startup in Oakland launched it bought HomeUnion.

The purchaser, Mynd Property Management, is in the hunt for to revolutionize property management for small merchants one of the simplest ways HomeUnion tried to revolutionize dwelling investing.

“Adding HomeUnion’s capabilities to the Mynd platform solidifies our position as a leader in the small residential real estate investment business,” said Doug Brien, CEO, and co-founder of Oakland-based Mynd.

“Property management is a fundamental aspect of executing a successful investment,” Brien said. “However, picking the right property in the right market for the right price at the right time — is also crucial. We look forward to leveraging our investment experience and HomeUnion’s data and tools to help our investors grow their portfolios.”

Terms of the deal weren’t disclosed. The purchase follows Mynd’s newest merger with RentVest, which doubled Mynd’s property management footprint to larger than 8,000 small residential rental objects in 16 markets, the company said.

Mynd’s long-term intention is to alter right into a full-service precise property funding provider inside the nation’s top-50 most investible markets, the company said.

Both Brien and co-founder Colin Wiel have experience growing into nationwide markets. Both beforehand helped run Starwood Waypoint Homes, one in all many excessive firms creating big portfolios of rental houses all through the housing downturn. Waypoint lastly was acquired by equity firm Blackstone, one different chief inside the institutional rental dwelling enterprise.

Like Waypoint, Mynd is in the hunt for to cut working costs by serving the rental commerce “at scale.”

The property management enterprise presently generates $29 billion a yr in fees, Wiel said in June all through the National Association of Real Estate Editors’ conference in Austin.

“Nobody’s ever done that industry at scale,” Wiel said.

The merger comes when small investor home buying is at a 20-year extreme.

CoreLogic reported remaining month the U.S. dwelling funding cost hit 11.3% in 2018, one of the best diploma as a result of the firm began monitoring these numbers in 1999. By comparability, the funding purchase cost was inside the 10.3-10.9% range all through the investor-buying frenzy of 2012-14.

The improve, CoreLogic reported, is coming from smaller merchants who private from one to 10 properties, said CoreLogic Deputy Chief Economist Ralph McLaughlin.

“Investor buying activity is at record highs,” McLaughlin said.

The sale means HomeUnion purchasers might have entry to the Mynd’s property management suppliers and information, said HomeUnion co-founder and Chief Executive Don Ganguly. That, in flip, will make “investing accessible to a greater number of investors.”




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