Source: Tech Crunch —
Startups that are catering to homebuyers are struggling as interest rates and inflation have climbed and inventory shortages continue in many markets.
The latest casualty in the space is Reali, which announced that it has begun a shutdown and will be laying off most of its workforce on September 9.
In a press release, co-founder and chairman Amit Haller said “the challenging real estate and financial market conditions and unfavorable capital-raising environment” led to the decision to wind down operations.
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Didn’t this principal leave the “home buyer” in a potential “Contract for Deed” situation?
Should their home “Sale” meet with difficulty, or its Buyer’s appraisal fail, to what extent did Reali absorb the time on money, any interest, etc.. From what I saw, there was some level of passthrough costs to Seller.
In the event the Sale deal failed, and if the Seller had a note, but Reali kept the Deed to the new home, then wouldn’t their client effectively have a Contract for Deed?