Prevu, a real estate tech firm, announced on Wednesday the purchase of mortgage technology assets from the now-shutdown real estate startup Reali to expand its digital buying platform.
“Terms of the asset transaction include the transfer of all technology and intellectual property rights related to Reali Inc.’s mortgage business, Reali Loans,” the firm said. The acquisition was completed on October 14 and the terms of the deal were not disclosed.
Prevu, which launched in 2018 in New York City as a real estate technology platform, offers buyers up to 2% of the purchase price cash back with its commission rebate. Its Smart Buyer platform allows would-be buyers to find an apartment or home with a customized property feed that shows their potential rebate. The firm claims to have brokered more than $1 billion in real estate transactions over the past four years.
The acquisition is a step toward entrance into “the mortgage vertical and long-term vision of empowering homebuyers by offering them all of the services they need in one place,” co-founder and co-CEO of Prevu, said in a statement.
The move accelerates the firm’s plan to offer mortgage services in select states next year once licensed, Thomas Kutzman, co-CEO of Prevu said in an e-mail response. Acquired technologies from Reali include consumer-facing loans web app, pricing engine, rate lock tools and loan origination system integrations, Kutzman said.
While the rapid rise in mortgage rates will create headwinds for some real estate players, Kutzman added it will create opportunities for other firms as “we are like in the early innings of consolidation via M&A.”
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Reali, founded in 2015 and once Prevu’s competitor, offered power buying services, cash offer programs and had a lending arm, Reali Loans, which provided mortgage financing in 14 states. After launching its flat-fee brokerage in 2016, the firm acquired startup mortgage lender Lenda in 2019, which it integrated into Reali Loans.
However, citing “the challenging real estate and financial market conditions and unfavorable capital-raising environment,” California real estate startup Reali announced that it would lay off most of its staff in September and shut down.
At the time of the announcement, Reali said it was exploring potential sales of parts of its business, including mortgage origination, title and escrow and power buying.
Prevu raised $2 million in seed funding in 2019 led by Corigin Ventures, a seed-stage venture capital firm focused on real estate technology and consumer industries. The real estate tech firm operates in six states and major cities including New York City, Boston, Philadelphia, Los Angeles, San Diego and Seattle, according to its website.
