Downpayments Launches with $32.8M in Initial Capital to Unlock Equity and Fast-Track Financial Independence

Downpayments, which provides interest-free down payments for property investors, announced today the general availability of its services in Florida, in addition to $32.8M in initial debt funding from Partners for Growth, and equity from Second Century Ventures (backed by the National Association of Realtors). The company will use this new injection of capital to power over $200M in investment property transactions.

Mortgage rates skyrocketing to nearly 8% this year has created a difficult environment for those who want to refinance their mortgage to cash out and continue investing, without losing their existing low fixed rate. Downpayments enables existing borrowers to leverage their equity to obtain an interest-free down payment for their next purchase, without refinancing. Leveraging developments in open banking and AI, Downpayments is helping the consumer navigate the necessary complexity of handling multiple mortgages and expenses, with actionable insights supported by interest-free capital.

Downpayments was founded by Godfrey Dinh, the CEO and founder of Australia-based Futurerent, which has transformed the Australian real estate industry by empowering property investors with on-demand access to their rental income and has advanced over $25M AUD to property investors, primarily powering the down payment.

“Access to the down payment is the biggest barrier to creating wealth through property, and peoples’ personal financial lives are inseparable from their property goals,” said Dinh. “We started Downpayments to empower investors on their journey to financial independence. There has been very little innovation in this area, but with an abundance of data and our proprietary technology, we’re able to help people with one of the biggest purchases of their lives. We are particularly excited to begin serving property investors in Florida, where there is a tremendous level of real estate activity that we believe could grow with easier access to capital.”

Downpayments also provides buyer representation as a registered in-house brokerage, to ensure clients are getting the best deal possible.

“Godfrey and his team have demonstrated a best-in-class approach to innovating for the real estate financing industry. With Downpayments, they’re tackling one of the thorniest issues surrounding real estate transactions and have found a way to turn hopeful buyers into actual buyers by unlocking easier, faster access to a down payment,” said Dave Garland of Second Century Ventures. “We are thrilled to partner with the team as they begin to scale in Florida and throughout the U.S.”

“We are excited to continue partnering with Godfrey and his team as they expand into the U.S., leveraging the technology and approach to risk they have developed in Australia,” said Max Penel, Co-Head of Fintech at Partners for Growth. “PFG started working with Futurerent in late 2022, and this U.S. expansion provides an opportunity to unlock equity as the national average loan to value ratio in the U.S. has fallen.”

Those in Florida looking to access down payment funding can apply here.