ProntoPiso raises funds to expand its agent network
ProntoPiso.com, a Barcelona-based online real estate portal that guarantees owners a sale or money back within 90 days, has raised 1.6 million euros (US $ 1.9 million) from existing investors. The financing will expand its network of real estate agents, according to the investment information site Web Capital Riesgo.
Somewhere between a digital agency and an IBuyer, ProntoPiso’s business model requires constant cash flow. The company, founded by Andres Pla, Diego Paradinas and Antai Venture Builder in 2017, does not buy properties directly, but advances owners an agreed price if the house does not sell within 90 days.
He continues to market the house and earns a commission if he sells at or above the appraisal. If the property sells for less, ProntoPiso absorbs the loss. ProntoPiso earns 5% on the final sale price with the 90 day guarantee. Sellers can also choose a 4% commission on the standard sales service (without guarantee), or pay a 7.5% commission for a cash advance up to 10% of the valuation (up to 50,000 €) plus the 90-day advance.
ProntoPiso also has an agent portal, Realtus.com, which offers property management tools, marketing, administrative support and access to the 90-day sales guarantee.
ProntoPiso would have won 1 million euros (US $ 1.1 million) last year. As of February, it had 34 employees and around 400 agents. The site lists 1,500 properties in Barcelona, Madrid and Valencia. National and international expansion plans were on the table.
Co-founders Pla and Pardinas were unavailable to comment on how Covid-19 has affected ProntoPiso’s growth and future plans.