$45 million accordion feature will enable direct-to-consumer real estate platform to expand technology and services
SAN FRANCISCO, March 7, 2022 – Insured technology financing pioneer, PIUS announced today the securing of $10 million in funding for REX Homes, the only real estate technology company resetting traditional real estate on behalf of consumers. REX’s fully-integrated platform enables consumers to find brokerage, mortgage, insurance, title, and escrow, all of which are owned by REX in-house to provide for a seamless customer experience. The private placement bond was underwritten by PIUS and based on its evaluation of REX Homes’ intellectual property (IP). The deal also includes an accordion feature, providing REX the option to increase the amount to $45 million.
“Working with PIUS has been unique to any other financing facility, as we were able to expand our company’s working capital, without equity dilution and at a lower cost, all on the strength of our own intellectual property,” said Jack Ryan, CEO and co-founder of REX Homes. “The financing will support REX’s continued business growth and market expansion, including both our technology platform and home buyer services, as we uphold our mission to deliver a direct-to-consumer real estate solution for individuals across the country.”
REX has emerged as the national leader in real estate reform, with the goal of eliminating fees, growing the U.S. real estate market, and saving Americans billions of dollars each year. REX is the only residential real estate firm that is direct-to-consumer, not direct-to-agent, and maintains a five-star rating on Zillow due to its tech platform and full-time workforce that is motivated by customer satisfaction, not commissions. REX recently launched Homes Plus, which provides customers cost savings and peace of mind after their purchase, by providing home maintenance, repairs, lawn care, moving and storage, all in one place.
“REX Homes has built out an incredible suite of tech products and services, with its consumer-first model poised to disrupt the real estate market, using AI to learn quickly how to best serve its customers. With its addition of its Homes Plus program, REX is now providing exceptional service throughout the entire home ownership lifecycle,” said Joe Agiato, CEO of PIUS. “Through its tech tools and a fully-integrated platform, REX is bringing a completely new real estate experience to today’s consumers, and PIUS is excited to support REX in furthering that mission.”
PIUS provides a proprietary insurance product for growth-stage technology companies to secure better, more flexible financing options without dilution by insuring the debt’s value, based on PIUS’ evaluation of the company’s intellectual property. The cost of capital is typically less than 10% overall, including the cost of insurance, with no warrants, extra fees, or prepayment penalties. Through PIUS’ CLip Notes program, PIUS provides the insurance, brings the capital source via institutional investors, and monitors the transaction, providing a complete solution.
PIUS Limited, LLC, offers a proprietary insurance product for growing technology companies, which utilizes a company’s intellectual property (IP) as collateral. By insuring the loan based on its evaluation of a company’s IP, PIUS helps facilitate greater loan amounts at better rates, while transferring the risk from the lender to the insurer. PIUS is a managing general agent (MGA) and provides more complete coverage than other policies through its residual value insurance program. For more information, visit https://piusre.com.
About REX Homes
Founded in 2016 and headquartered in Austin, Texas, REX Homes is the only real estate technology company resetting the traditional real estate on behalf of consumers. Uniquely, every home in the US costs less when buying through REX, except in a couple states, such as Oregon, that do not allow the sharing of cost savings with consumers. And when selling, REX achieves the highest price for the home, lowest commission and best service. REX has a five-star rating on Zillow and customer satisfaction scores far in excess of its competitors due to its tech platform and full-time W-2 workforce that is motivated by customer satisfaction, not commissions. For more information, visit https://www.rexhomes.com.