This is the Doorvest pitch deck to raise a $2.5m seed round in 2021.
About
Doorvest is a full-service real estate investing platform that helps busy working professionals own passive income rental homes. The company is an end-to-end rental home investing platform that helps individuals own real estate to generate passive income and build equity. Its platform assists in investing in cash flowing rental homes by properly identifying, planning, purchasing, and owning lease houses that enable users to unlock homeownership, passive income, and equity by investing in properties online.
Doorvest, a single-family rental proptech startup, announced today that it has raised $2.5 million in a seed round led by early-stage experts Mucker Capital, who helped fund a previous pre-seed round.
The company has now raised $3.6 million, other funders include Invitation Homes co-founder Markus Ridgeway, Adam Nash, the former CEO of Wealthfront, and a slew of family and friends.
The company, founded in 2019, allows users to remotely underwrite, purchase, and manage homes as rental properties. Cofounder and CEO Andrew Luong said the idea came from his own experience building a portfolio of investment properties from afar while working at a few different startups.
“I saw others that were similar to me,” Luong told Insider. “They had the same job title and income as me, had $20,000 to $30,000 saved up, and had the same dreams and aspirations. They traded stocks on Robinhood, invested in crypto, their 401(k), and high-yield savings account — but were thinking about that next level of asset class.”
Bea cause he wasn’t physically on the ground in the markets where he was buying property, he could identify the challenges finding, buying, and managing real estate. Each step in the process, from sourcing and underwriting to property management, required lots of research and knowledge to execute correctly.
Individuals who wanted to invest in rental properties, especially in the most popular locales, also had to compete with increasingly powerful Wall Street-backed institutional landlords, who leverage in-house property management systems and multimillion-dollar budgets.
Luong decided create a dual online and in-person infrastructure that would streamline the process of owning a rental property. With some angel funding from friends and family, Luong and his cofounder Justin Kasad began to build Doorvest.
Doorvest customers start their home-buying journeys online. After a short assessment of the customer’s investment objectives and financial readiness, the customer forks over a deposit. Doorvest’s team then searches for a home that fits the investor’s criteria, purchases it with a mix of equity and debt, renovates it for some $25,000 to $35,000, and then fully sells it to the customer.
Doorvest then handles the day-to-day operations of the property via a mix of in-house employees and vendors who handle property management and repairs, all while using software to track the asset’s performance. Doorvest also guarantees the first year of income.
The company makes money by charging a premium for their service while purchasing and renovating the asset, and then charging a monthly property management fee. The property management fee is standard for the industry, but the company doesn’t charge anything when the house is not generating rental income. That aligns the company with customer incentives when the home is empty, according to Luong, and is a departure from the industry.
Luong said the newest round of funding will be used to grow Doorvest’s team, to increase the speed at which customers can move through the home-buying process, and to expand to a second market. Right now, the firm only serves the Houston, Texas, area.
The company also announced its Home Renovation Guarantee, which guarantees the home against wear and tear for the first year. If anything — from an HVAC system to microwave — needs repairs in the first year, the company will fix them with no cost to the homeowner.
Funding rounds
| Announced Date | Transaction Name | Number of Investors | Money Raised | Lead Investors |
| Jan 27, 2021 | Seed Round – Doorvest | 5 | $2.5M | Mucker Capital |
| Sep 24, 2020 | Pre Seed Round – Doorvest | 5 | $1M | Mucker Capital |
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