New Disruptions to Look Out For in the Real-Estate Market.
Title swapping made Easy.
As detailed in our previous article, Closing a Real-Estate Purchase in Indiana, closing a real-estate purchase is a notoriously difficult and lengthy process that differs from state to state. The process is overdue for innovation, and disrupter Doma is out to do just that.
Doma, a new real-estate title insurance firm, is looking to disrupt the market by offering a title swapping service that claims to reduce the lengthy process of closing purchases from the standard five days to minutes. Doma CEO Max Sinkoff claims the firm utilizes modern machine learning techniques to speed up the closing process, with a goal of reducing the entire mortgage closing process from 50 days to less than a week.
Doma, formerly known as States Title Holding Inc.
Founded in 2016, Doma recently merged with special purpose acquisition company Capitol Investment Corp. V. The merger will take the company’s previous value, raised in their C funding round last March at $623 million, to $3 billion. The firm was also recently backed by Lennar, one of the nation’s largest homebuilders.
Doma’s methods have proved effective, with about 800,000 total closings already in the books. Doma has worked with multiple big-money lenders, including Chase, Homepoint, PennyMac and Sierra Pacific Mortgage. In 2020, Doma generated about $200 million in total revenue and initially projected an annual revenue at the $500 million mark by 2023. With additional investors, however, that projection has drastically increased.
Over the past year, Doma has acquired multiple Private Investment in Public Equity (PIPE) backers to the tune of $300 million. Included are Blackrock, Fidelty Management, The Gores Group, Hedosophia, SB management, Wells Capital, and former CEO of the Zillow Group Spencer Rascoff.
CEO Sinkoff says the funding has accelerated their timelines and stated a revised $500 million estimated revenue by 2023 to $1-1.5 billion by 2023.
3-D Print the Whole Neighborhood
In Calverton, N.Y., construction company SQ4D Inc. has just finished their first 3-D printed home. Director of Operations, Kirk Anderson, says the home was a test run in a notoriously difficult zoning area, proving their methods to be better than traditional homebuilding methods.
SQ4D Inc. utilizes a massive 3-D concrete printer called an “Autonomous Robotic Construction system” to print interior and exterior walls, concrete foundation, and utility units. The kicker? The whole process took only two days and is on the market for about ½ the price of comparable homes in the area.
SQ4D’s Autonomous Robotic Construction System laying walls, foundation and utility units
The upside is obvious, and Anderson has received stunning amounts of interest from buyers and developers alike. “By the time I walk out of this house I’ll have 20 emails, 20 voicemails, and 20 texts, and by the time I get to respond to them I will have another 20 emails, 20 texts and 20 voicemails, so it’s nonstop,” said Stephen King, the real estate agent for the 3-D printed property.
For now, Anderson says, SQ4D Inc. will focus their efforts locally to perfect the process and cement (no pun intended) its efficiency. The company then wants to expand its efforts across states to Florida and California.
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