New Start Up Buys Homes From Sellers And Rents Back Until Buyers Can Close

A new start up is buying homes directly from homeowners and selling them to buyers, reports HousingWire's Ben Lane.
Ribbon, which is currently operating in the Carolinas, offers a novel concept. The company works with homebuyers and their real estate agents to provide home sellers with a guaranteed sale, providing sellers with an all-cash offer regardless of where the buyer is in the mortgage process. Basically, if a homebuyer can’t close on their mortgage in time, instead of losing out on the house of their dreams, Ribbon will buy and reserve the home on their behalf. The buyer then rents the home from Ribbon until they get their financing in order.
Lane says the deal offers benefits for those on both sides.
Sellers get a guaranteed cash offer and buyers don’t have to worry about losing the house they want because their funding is slowed for whatever reason.
The company currently only operates in a few markets in North and South Carolina, but recently raised $225 million in a combination of debt and equity financing. According to the company, it plans to use the money to expand into 10 new markets by the end of 2019 and more markets after that.

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