OfferPad, loanDepot partner on Scottsdale-based home loan company – Phoenix Business Journal – Phoenix Business Journal

Gilbert-based real estate technology company OfferPad has partnered with loanDepot to launch a home loan company to make it easier for customers to buy and sell a home online.
Scottsdale-based OfferPad Home Loans LLC will provide digital customized mortgage financing options to OfferPad’s customers through loanDepot’s “mello” technology, said Jerry Coleman, OfferPad’s co-founder and co-CEO.
“We’re both out to make the real estate process easier, faster and more transparent to save our customers money and hassle,” Coleman said. “The key to the new company is to find ways to make this easier instead of going to five or six parties.”
With the help of loanDepot, the Foothill Ranch, California-based retail mortgage lender, OfferPad Home Loans will launch a bridge financing product to allow customers to qualify for and buy a new house before their existing home sells, based on an offer from OfferPad, Coleman said.
“Financing is optional through the new company when buying or selling a home, but the goal is to make it easier for customers,” Coleman said. “We’ll be leveraging each other’s technology to continually make this process better and easier for the customer. We’re excited about the possibility of changing the way real estate transacts with loanDepot.”
OfferPad Home Loans will be run by OfferPad and loanDepot executives. Coleman anticipates hiring about a dozen people in Scottsdale soon, with expansions planned at other offices as the demand arises. LoanDepot also has an office in Scottsdale.
“OfferPad is a disruptive force within the real estate industry,” loanDepot CEO and chairman Anthony Hsieh said in a statement. “Digital adoption continues to reshuffle the deck on how consumers interact with lenders and real estate service providers. The platforms that combine best-in-class digital experiences with local market expertise will thrive.”
The fast-growing OfferPad bought and sold 450 homes in October nationwide, with about 40 percent of those homes in Arizona, the company’s launch market. Also in October, OfferPad entered into contracts to buy about 350 homes, Coleman said.
Other than Phoenix, OfferPad has launched in Las Vegas, Salt Lake City, Tampa, Orlando, Atlanta, Los Angeles and Charlotte, North Carolina. Atlanta and Charlotte are the newest markets, with one more market planned by the end of the year, said OfferPad co-founder and co-CEO Brian Bair.
Through OfferPad, people can sell their home, get pre-qualified for a new home and pick a closing date to move out. Customers can search inventory of OfferPad homes to find their next home, and OfferPad will pay for local moving on the customer’s schedule.
A mobile notary service will be launched soon so OfferPad customers can sign paperwork in their home when selling and buying a new home, Bair said.
OfferPad also partnered with real estate site Zillow Group Inc. (Nasdaq: Z) earlier this year to connect to OfferPad for instant offers when selling their home. Zillow Instant Offers first tested its marketplace in Las Vegas and Orlando, expanded to Phoenix a couple months ago, and will roll out nationwide soon in all OfferPad markets, Bair said.
The 250-employee OfferPad, with 175 local employees, has hired 90 people since January.
The company continues to hire with plans to add another 75 to 100 employees during the next three to four months, Bair said. Positions are across the board, including acquisitions, renovations, software developers, finance and accounting.
“We’re excited about it. We have a lot going on and we’re growing significantly,” Bair said. “We’re doing a billion dollars in run rates in our annual transactions.”
OfferPad has been growing fast since it raised $260 million in a Series A round in January.
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