mynd Raises $57.3M to Revolutionize Rental Property Investment

Mynd Secures $57.3 Million in Funding to Revolutionize Rental Property Investment

Mynd, a company focused on simplifying the acquisition and management of single-family rental properties, has announced a new funding round of $57.3 million led by QED Investors.

This financing establishes the company’s valuation at $807 million. It also increases the total capital raised since its founding in 2016 to $174.9 million.

Previous Investment and Expansion Plans

A prior funding round of $40 million was spearheaded by Invesco Real Estate. Invesco has also committed $5 billion to the purchase and management of 20,000 single-family homes through the Mynd platform over the next three years.

Doug Brien and Colin Wiel founded Mynd with the intention of broadening access to real estate investment opportunities.

A Fully Integrated Platform

The founders have developed a platform enabling investors to locate, finance, acquire, and oversee single-family rental properties entirely remotely.

“We maintain all operations internally, avoiding outsourcing to external partners,” Brien explained to TechCrunch. “This approach eliminates geographical limitations, allowing investment in 25 different cities nationwide from any location, utilizing our desktop interface and mobile applications.”

Current Operations and Future Growth

Currently, Mynd oversees more than 9,000 rental properties across 25 markets in the United States.

The company intends to expand its reach to 15 additional markets within the next three years, including Indianapolis, Indiana, and Memphis, Tennessee.

Combining Technology and Local Expertise

Mynd’s technological infrastructure is supported by a dedicated team operating in local markets.

This combination enhances the speed and clarity of communication with Mynd residents, as stated by Brien. It also provides complete transparency for property owners regarding the performance of their investments.

The OTTO System

“We’ve developed our own specialized system, called OTTO,” he said. “It functions similarly to a combination of ‘Snowflake and Zendesk,’ but is specifically designed for real estate investment and property management.”

Significant Growth in Property Management

In the previous year, Mynd added 1,846 homes to its platform.

The company is projected to add approximately 8,500 homes this year, encompassing both retail and institutional clients, nearly doubling the total number of properties managed year-over-year.

Invesco represents Mynd’s largest institutional client. Approximately 4,000 investors currently utilize Mynd on the retail side.

Democratizing Real Estate Investment

“We firmly believe that investment in single-family residential properties is a prime avenue for building lasting, generational wealth,” Brien stated to TechCrunch.

“Mynd is dedicated to democratizing real estate, making it accessible to a new generation of investors who may have previously felt intimidated or constrained by geographical limitations.”

Impact of the Pandemic

The pandemic highlighted the importance of the company’s mission, as individuals sought larger living spaces and increased flexibility in housing options.

Future Investments and Expansion

Mynd intends to allocate the new capital towards enhancing its digital platform, which is driven by “an extensive proprietary data set.”

Further improvements will be made to its automated workflow engine, underwriting processes, mobile applications, and omnichannel communication channels.

The startup also plans to continue its hiring efforts and expand into new markets.

Company Growth

Currently, Mynd employs 568 individuals, an increase from 366 employees one year ago.

QED Investors’ Perspective

QED partner Chuckie Reddy described the Mynd team as “one of the best” his firm has encountered in the single-family rental sector.

He also praised the company’s “purpose-built” technology stack, specifically designed for this type of property.

“They offer a uniquely superior solution compared to other options currently available,” he noted.

The Growing Single-Family Rental Market

QED believes the single-family rental asset class is experiencing rapid growth due to the size of the housing market, the demand for this type of housing, and the substantial capital formation observed since the last financial crisis, according to Reddy.

“There is a significant shortage of affordable, high-quality single-family rental housing, and Mynd possesses the technology to effectively manage this asset class,” he concluded.