Setpoint, a real estate funding platform, acquired Resolute Diligence Solutions to support proptech and single-family rental re-engagement in the market, the firm said.
Resolute Diligence Solutions is a due diligence provider that partners with banks, lenders and originators to ensure each deed, title or lease is verified and reported accurately against financial statements.
“We are seeing a lot of traction with single-family rental and proptech companies that are prioritizing capital and operational efficiency,” Ben Rubenstein, president and co-founder of Setpoint, said about the timing of the acquisition.
While transactions are down, Setpoint is more bullish than ever on the proptech and single-family rental categories because the models it supports – from PowerBuying to HomeEquity to single-family rentals – create consumer value in all markets, Rubenstein noted.
“Setpoint is helping these firms improve operational and capital efficiency. When the market returns to normal levels, these companies can scale with fewer resources and less capital,” he said.
Founded by Stuart Wall, Ben Rubenstein and Michael Lam in 2021, the company enables proptech companies to offer home buying and selling options, including contingent-free, all-cash offers to customers, which it says enables these businesses to accelerate funding and closing on properties.
Setpoint aims to build fast and accurate infrastructure that will make credit more widely available and the underlying assets more liquid, which in turn will drive down costs for lenders and borrowers.
Operating as a SaaS, Setpoint’s backend platform provides streamlined workflow tools including document collection and verification, automates manual closing processes and boosts transaction throughput.
In December, Setpoint raised $43 million in a Series A round led by Andreessen Horowitz (a16z). About six months prior to the funding, the tech firm closed a $5.5 million seed round and $150 million in securitization.
While cautiously optimistic about the housing market for the rest of 2023, Setpoint expects to scale more than five times this year, the firm said.
Despite the slowdown, Setpoint grew rapidly driven by client additions, focusing on countercyclical originators and adding products and services, Rubenstein added.
