Stoa USA Inc., the Arizona-based company that launched the FlipOS by Stoa platform for professional single-family home investors, has closed another $100 million securitization. The funding is underwritten by Cantor Fitzgerald, a leading financial services firm that specializes in real estate investments.
This marks the second time Cantor Fitzgerald has worked with Stoa on this type of fundraising. Stoa’s $100 million securitization in November 2021 was also underwritten by Cantor Fitzgerald.
“The Stoa team looks forward to what’s possible for our real estate partners with this round of funding, and we’re proud to have the continued support of the experienced team at Cantor Fitzgerald,” says Tom Sella, co-founder of Stoa. “It’s been less than a year since our initial $100M securitization, and we’ve seen exponential growth in product adoption since then.”
According to Bankrate.com, housing supply is far below demand levels due to multiple factors, including younger buyers looking for first-time homeownership and under-building after the 2007 recession. FlipOS by Stoa focuses on the fix-and-flip market, where existing properties need upgrades or repairs before they become viable options for people looking for housing.
With the additional securitization, FlipOS by Stoa will be able to work with more professional real estate investors to grow and scale their businesses, helping to close the housing gap in America by providing quality residential inventory to the market faster than homebuilders can.
With the housing market in a state of change, FlipOS by Stoa has gained even more traction because its unique model allows investors to purchase, renovate, and sell single-family homes faster and with less risk than traditional models.
“It’s a big deal that we were able to close this round of funding amid a fluctuating housing market,” says Or Agassi, co-founder of Stoa. “It speaks volumes about the underlying strength of our business model. We continue to scale rapidly but responsibly, maintaining strong unit economics. We’ve created a business that people want to invest in regardless of macroeconomic conditions.”
The company has raised around $300 million in equity and debt.