Dublin-based start-up ReAlpha plans to file a “mini-IPO” next week to raise $75 million as part of its bid to become the country’s largest landlord of short-term rental homes.
Moving is a key step in company projects to buy up to $1.5 billion worth of homes across the country that would be rented through Airbnb.
The shares, available through what is called a settlement A+ offering, would sell for $10 each.
“We are excited to offer Main Street investors access to early-stage investment opportunities through our A+ regulatory offering,” ReAlpha Founder and CEO Giri Devanur said in a statement. Press release.
Devanur announced ReAlpha in July with Brent Crawford, founder and director of development company Crawford Hoying, which has committed $6 million to the venture.
In addition to the $75 million raised through the public offering, ReAlpha hopes to raise an additional $75 million from individual investors who would buy shares of properties with as little as $2,500. The combined $150 million would allow the company to purchase $1.5 billion worth of property, or up to 3,000 homes, assuming a 10% down payment.
ReAlpha promotes its business as an opportunity for small, individual investors to invest in the $1.2 trillion short-term rental industry.
“Our mission is to democratize real estate investing and empower everyone to invest in real estate assets,” Christie Currie, Chief Marketing Officer of ReAlpha, said in a press release.
ReAlpha plans to use technology it developed called ReAlphaBrain to identify the best properties to buy on the wholesale market to use as short-term rentals.
The company has begun acquiring homes in the Dallas and Miami areas and is looking for properties in the Texas, Florida, California, New York, New Jersey, Colorado and Illinois metro areas. . ReAlpha seeks properties with high year-round demand in cities large enough to accommodate at least 100 properties to allow them to be managed efficiently.
Although some properties may be ready to rent, ReAlpha plans to renovate many of the homes it buys.
@JimWeiker
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