Marketplace Homes in Livonia Raises $5M From Finance Michigan Inc. to Expand
MarketPlace Homes' business model is focused on increasing new home construction.
Marketplace Homes, a Livonia-based property manager for more than 2,500 single-family homes in 28 states, has announced a partnership with Detroit-based Finance Michigan Inc. to fund its continued growth in the real estate industry.
Marketplace Homes officials say the collaboration will create dozens of new jobs for software developers, real estate professionals, and call center employees. While Marketplace Homes sells and manages real estate nationally, all employees are based in metro Detroit and proprietary technology allows them to serve their clients.
Marketplace Homes will devote most of the $5 million in new capital to extending its exclusive home buyout model, which provides cash for old homes to facilitate new construction. The company also offers a guaranteed lease program for new construction home buyers who want to lease their old homes. Marketplace Homes guarantees a competitive rent payment every month, making home rental a more viable option.
Founded in 2002, the company has sold more than $3 billion in new construction homes and gained a controlling interest in around 23,000 single-family properties nationwide. The company currently employs 80 workers at a 23,000-square foot facility in Livonia.
“This is a better way to do real estate,” says Mike Kalis, CEO of Marketplace Homes. “If we say we will sell your home for a certain price, we mean it. And we don't just say we'll get you a certain amount of rent for your home; we literally guarantee it.”
By relieving home buyers of their old properties, Marketplace Homes helps its partner builders, represented by more than 25 companies nationwide, avoid unexpected cancellations that can result in millions of dollars in unsold inventory annually.
"Our buyout and guaranteed lease programs make purchasing a new construction home a seamless process, and our partner builders are selling more homes because of it," adds Kalis.
Marketplace Homes also plans to increase its technology presence, which currently allows the company to value, market, and sell properties in major U.S. markets. Additionally, the company plans to acquire property management companies in synergistic markets.