Anyone who’s watched the news knows the U.S. housing market has been a rollercoaster ride for quite some time. According to Forbes Advisor, “The housing market might finally be entering a transitional phase. Nonetheless, experts say the housing market will only see renewed momentum once mortgage rates drop enough to ease affordability challenges and incentivize homeowners locked in at low rates to move so inventory grows substantially to meet demand.”
Confused? This is where EasyKnock enters the chat, stepping up to respond to homeowners and provide them with alternative solutions. EasyKnock, a leader in residential sale-leaseback programs, helps homeowners convert home equity into cash through its range of innovative financial products and services. Based in New York City, the home equity solutions company buys homes and allows the seller to stay in the abode as a tenant. Here’s an in-depth look at the company’s progress in the first half of 2024.
Building a Comprehensive Platform Through Partnerships and Acquisitions
EasyKnock’s goal is to provide homeowners with solutions to convert their equity, which can help them achieve greater financial flexibility.
Starting with its core sale-leaseback offerings, EasyKnock is delivering on its mission to help American homeowners improve their financial stability by enabling them to access and convert their home equity. Through a series of partnerships and acquisitions, EasyKnock has broadened its customer base and diversified its service offerings to meet a wider range of homeowner’s needs.
Pinata Partnership: In April 2024, EasyKnock teamed up with Pinata, a platform dedicated to building credit for renters, using its rewards program as an incentive. This partnership allows EasyKnock customers to utilize Pinata’s credit-building tools. Rent payments made on time to EasyKnock are reported to the credit bureaus, which helps customers see improvements in credit scores. The results can be transformative. EasyKnock users of the Pinata platform have seen an average increase of 57 points to their credit scores within the first few months of use.
HomePace Acquisition: In May 2024, EasyKnock acquired home equity investment firm HomePace. Based in Park City, Utah, HomePace helps homeowners by providing them up to $250,000 in cash, essentially investing in the home’s equity. Homeowners are able to convert their equity without taking on additional debt or interest payments. When the house is sold, the company shares a portion of the sale price with the homeowner.
iHeartMedia Partnership: EasyKnock collaborated with iHeartMedia in May 2024 in an initiative to expand its reach. The collaboration includes a nationwide advertising campaign across numerous media platforms, including radio and digital, which has allowed EasyKnock to connect with a broader audience and help more homeowners who may not be aware of the alternative ways that they can convert their home equity.
FinLocker Partnership: EasyKnock announced an affiliation with FinLocker in June 2024. FinLocker is a financial readiness platform that helps consumers manage their finances, improve their credit scores, and prepare for homeownership. This provides EasyKnock customers with free access to FinLocker’s suite of tools, which include personalized budgeting, financial goal-setting, credit tracking, and mortgage readiness guidance.
Rehab Warriors Partnership: In early August 2024, EasyKnock collaborated with Rehab Warriors, an organization dedicated to helping U.S. military veterans transition into civilian life by training them for careers in the housing industry. The partnership includes a fellowship program that provides veterans with applicable skills and employment opportunities with EasyKnock.
Local Professional Partnerships: EasyKnock isn’t just going after the big guns. The enterprise also builds community ties by seeking local real estate agents and mortgage brokers nationwide. In addition to helping the company reach more homeowners who may benefit from alternative home equity solutions, these relationships help EasyKnock stay in tune with local market shifts and demands. Customers can choose their own real estate agents to serve as a liaison to EasyKnock, as well as with the home selling process, providing them with another layer of support throughout the sale-leaseback process. Mortgage brokers can help homeowners looking for ways to convert their home equity by offering alternatives through EasyKnock.
Addressing Housing Affordability Concerns
While EasyKnock takes on a landlord role after purchasing a home in which the customer remains, the company is clear about its objective: to help its customers with solutions tailored to their needs. It’s committed to maintaining fair and transparent practices, which is reflected in its rent pricing practices. In an initiative to address concerns over the national housing affordability crisis, EasyKnock announced a voluntary rent increase cap for its tenants in early August and encouraged other corporate landlords to do the same.
This move limits rent hikes to 2.5% per year, or the urban consumer price index. EasyKnock’s rent cap goes a step beyond what’s currently being proposed at the national level. In July 2024, President Joe Biden urged Congress to pass legislation that would cap rent increases at 5% for corporate landlords in order to curb rising rent costs. EasyKnock’s proactive approach in setting a lower cap shows its commitment to supporting its tenants while addressing the broader issue of housing affordability.
Investor Confidence and Industry Recognition for EasyKnock
In Q1 2024, EasyKnock secured $28 million in funding from numerous investors, a strong indicator of investor confidence in its business model. A key contributor was Northwestern Mutual Future Ventures, the venture capital arm of Northwestern Mutual. The capital will be allocated to the expansion of EasyKnock’s product line and supporting its efforts to help more homeowners convert their home equity.
EasyKnock also enjoyed its fair share of accolades in 2024. The company was awarded the title of Alternative Financing Platform of the Year at the 2024 PropTech Breakthrough Awards, which “recognizes the top technology companies, solutions, and products in the real estate technology industry today.” This is the third consecutive win for EasyKnock.
In June, EasyKnock CEO Jarred Kessler was honored with an Inman Best of Finance Award, which celebrates the achievements of individuals and companies making an impact in the mortgage and finance space.
As EasyKnock moves into the latter half of 2024, it’s well positioned to continue to expand its influence across the U.S. real estate sector.
