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Knox Financial, a proptech start-up that wants to make owning a rental property as easy as owning stock, just raised $10 million from investors. That brings the company's total funding to date to nearly $15 million.
This funding is being called a Series A -- the round was led by G20 Ventures, but also included Greycroft, Pillar VC, 2LVC, and Gaingels.
More on Knox
Knox's goal is to completely remove the burden associated with being a landlord for single-family property owners. The company works with both seasoned landlords and those new to property investing. If you own your home and decide to move, Knox doesn't want the reason you sell to be the fear or anxiety associated with becoming a landlord.
Once onboarded, Knox takes over your property's finances and taxes, insurance, leasing and legal, tenant and property care, banking, and bill pay. Knox wants it to become a completely passive investment for its clients.
Co-founder and Partner at G20 Ventures Bob Hower explained:
Knox has shown people across the U.S. that you can see great returns from investment properties without having to put in countless hours of work. With Knox, investment property owners spend as little as one hour per year thinking about their properties and generate exceptional financial results. The company has grown rapidly since launching in 2019 -- its full-service, tech-enabled platform has clearly resonated with first-time investment property owners and career landlords alike.
Traction and growth
Knox currently manages a portfolio of over $100 million in single-family homes. The company was also named a 2021 HousingWire Tech100 for "creating technology solutions that make owning investment property as simple as owning a share of stock."
Knox is currently active in four major cities and plans to expand to six more this year. David Friedman, CEO of Knox, stated: "When we launched Knox in March 2019, we set out to give everyone, from middle-class homeowners to seasoned landlords, a hands-off, predictable, and lucrative way to build wealth through investment property. We're confident that Knox will become the U.S.'s largest and most successful wealth advisor for property investors."
Single-family in the news
This asset class has been all over the news. Here are some highlights:
- Recently, I spoke with Alec Hartman about his start-up, Welcome Homes, that plans to be able to build on-demand spec homes for investors.
- Annaly Capital Management (NYSE: NLY) shed its commercial business to focus on the residential market.
- The California desert will host the first ever 3D-printed housing community.
- Homebuilding and real estate firm Lennar (NYSE: LEN) announced that it will spin out its "noncore business units" and participate in a single-family rental joint venture.
- JLL (NYSE: JLL) invested in proptech start-up Roofstock to give single-family access to its clients.
The Millionacres bottom line
The single-family sector is scorching hot right now, and Knox wants you to be able to keep your single-family home. Although only in four cities today, this fresh round of funding should have Knox available in your geography soon.
*The author is an angel investor in Knox Financial.
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