Fintor today announced the completion of its $2.5 million Seed round which will be used to build an innovative fractional real estate investing platform.
Developed by serial co-founders Farshad Yousefi and Masoud Jalali, Fintor “fractionalizes” houses and other residential property, allowing U.S. persons to access investment opportunities in the real estate asset class starting with as little as $5.
Notable investors in Fintor’s Seed round include 500 Startups, Hustle Fund, Graphene Ventures, Manny Khoshbin, Mana Ventures and other noteworthy investors such as Cindy Bi, Skyler Fernandes, VU Venture Partners, Minal Hasan, Andrew Zalasin, Alluxo CEO and Founder Safa Mahzari, SquareFoot CEO and Founder Jonathan Wasserstrum and Teachable CEO and Founder Ankur Nagpal.
While owning a home is often considered the “escalator to wealth in America,” homeownership among American adults younger than 35-years-old has plummeted to historical lows, according to the U.S. Census Bureau. High upfront costs and low liquidity are cited as two of the primary obstacles to purchasing your own home, let alone buying an income-generating investment property. With its fractional real estate investing platform, Fintor aims to create a new path to real estate investing in an otherwise inaccessible asset class.
“At Fintor we hope to foster the next generation of real estate investors, so that you no longer need hundreds of thousands of dollars and industry connections to benefit from owning real estate,” said Co-Founder and CEO Farshad Yousefi. “We’re building Fintor to open the real estate investing asset class to millions of Millennials and Gen Z’ers who otherwise wouldn’t have a chance, and we’re making it easy to get started in real estate investing with $5 and a smartphone,” Farshad said.
Fintor mobile app
The Fintor technology platform would allow each property to have its own offering marketed through the platform, dividing the property into shares, setting a share price, and allowing consumers to invest. Ultimately, the platform intends to enable regular trading opportunities for investors through trading windows, creating liquidity for holders and while protecting against volatility.
“We have a vision that will change how people invest in real estate forever,” said Farshad.