Proptech firm Flyhomes has entered into an agreement to purchase Innovative Holdings, LLC’s “buy before you sell” platform Home Sale Assured.
The terms of the deal were not disclosed.
Founded in 2022 by Eric Meadow, Home Sale Assured produces a “Guaranteed Backup” options contract, which enables existing homeowners to buy their next home before closing the sale of their current home.
“Eric is a seasoned mortgage professional who has built something really special with the Guaranteed Backup Contract,” Tushar Garg, the co-founder and CEO of Flyhomes, said in a statement Monday. “Its ability to remove friction from the buying and selling process, while adding assurance, flexibility, and customer-centricity, aligns perfectly with our core tenants here at Flyhomes. This deal strengthens our offerings and gives us more tools to serve more customers looking for a better way to buy and sell a home.”
In the acquisition, Flyhomes will be acquiring the Home Sale Assured brand and Meadow will join Flyhomes as VP of partnerships. Meadow has 25 years of mortgage industry experience. He most recently served as the president of troubled, largely defunct retail lender Celebrity Home Loans.
“There remain far too many obstacles to home ownership these days, be it first-time home buyers, or in the case of Home Sale Assured, current homeowners trying to move,” Meadow said in a statement. “Consumers, agents and lenders are all looking for practical solutions to overcome these institutional challenges and Flyhomes has been at the forefront of this category. I’m ecstatic to now be able to leverage their advanced infrastructure and resources to bring the Guaranteed Backup Contract to more customers.”
Through the Guaranteed Backup Contract, the homeowner receives a valid purchase offer, allowing the homeowner’s lender is able to remove the departing debt obligations from the consumer’s debt to income ratio, allowing the lender to approve the loan on the new home, prior to the closing of the sale of the current home. The consumer has 90 days to then close of the sale of their prior home. During this 90-day period, the client can work with a real estate agent to list their prior home. If during that time, the client receives a better offer, they can cancel the Guaranteed Backup Contract and sell their home to the better offer.