B
ackflip, a fintech platform for real estate entrepreneurs, has secured $184 million in capital to fund residential transition loans (RTLs) through two private credit funds and asset-backed financing. The funding includes a joint venture with ECMC Group worth $20 million and a Backflip-managed private credit fund of $10 million. Performance Trust arranged a $100 million warehouse line, while Setpoint provided a $54 million credit facility.

    This capital raise enables Backflip to continue scaling its loan product offerings for members, who have seen their trailing 12-month origination volume grow threefold year-over-year to a $375 million run rate despite housing market headwinds. Members analyze an average of $10 billion in properties each month on the Backflip app.

    The RTL asset class has gained traction among sophisticated investors seeking attractive risk-adjusted returns, with Morningstar's investment-grade ratings on RTL securitizations catalyzing institutional investor interest. This year alone, there have been $4 billion worth of RTL securitizations in the first half, a 546% increase from the same period last year.

    "We're grateful for the trust and support of our capital partners," said Backflip Co-Founder and COO Jake Rome. "We're excited to be on the front lines of a rapidly-institutionalizing investment asset class."

    Backflip is an all-in-one platform providing entrepreneurs with technology, data, and financing strategies to scale their businesses. The company offers purpose-built solutions for real estate investors, including loan products and capital management tools.

    Setpoint's Michael Lam added, "We're excited to deepen our relationship with the Backflip team and contribute to the solution." Setpoint aims to streamline financial transactions through its automated platform, enabling borrowers and lenders to reduce costs and enhance speed.