This Company Wants To Cash In On Run-Down Homes

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This company wants to cash in on run-down homes: by Noah_Kirsch

, an area east of Los Angeles. In November, the platform processed about $35 million in sales, collecting a small percentage in buyer-paid fees.

Stech cofounded Sundae with Andrew Swain, who served as CFO at Stech’s last startup, LendingHome, an online mortgage bank. Prior to that, Stech spent even more time dabbling in distressed properties. As a graduate student at Stanford, he wrote his honor’s thesis on the subprime lending crisis that predated the Great Recession, then moved to Las Vegas to cash in on rock-bottom home prices.

“In a lot of areas, you don't have the opportunity to stamp out new inventory,” Rotman says. “So the best thing you can do is take old inventory, put a little work into it, and basically it turns into new inventory.”

 

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