Real estate technology company Flyhomes has officially exited the brokerage business to concentrate on its financial products, marking a significant strategic shift for the Seattle-based firm. The company is now focusing entirely on a wholesale distribution model for its flagship "Buy Before You Sell" program.
As part of this transition, Flyhomes is moving its in-house real estate agents to The Real Brokerage by the end of September 2025. This move finalizes a pivot supported by a recent $15 million Series D funding round aimed at expanding its financing services nationwide.
Key Takeaways
- Flyhomes has ceased its direct-to-consumer real estate brokerage operations.
- The company's new focus is its "Buy Before You Sell" financing product, offered through a wholesale model.
- All in-house Flyhomes agents are transitioning to The Real Brokerage.
- A $15 million Series D funding round was raised to facilitate this strategic pivot and national expansion.
- The company has sold its consumer-facing home search technology assets to The Real Brokerage.
A Strategic Shift to Wholesale Financing
Flyhomes has fundamentally altered its business model, moving away from directly serving homebuyers and sellers. Instead, the company will now operate as a financial services provider, partnering with external loan officers and real estate agents who can offer Flyhomes' products to their own clients.
This change allows the company to dedicate its resources to scaling its core financing solutions without the overhead of managing a traditional brokerage. The decision follows a period of adaptation for the company, which, like many in the real estate sector, has navigated market fluctuations and rising interest rates in recent years.
Understanding the New Model
The wholesale distribution model means Flyhomes will no longer employ its own agents to represent clients in property transactions. Instead, it will provide its specialized loan products to a network of independent mortgage and real estate professionals. This B2B (business-to-business) approach allows for wider distribution and scalability.
The "Buy Before You Sell" Program
At the center of this new strategy is the company's "Buy Before You Sell" program. This product is designed to solve a common problem for existing homeowners who want to purchase a new property.
The program helps homeowners unlock equity from their current house to use as a down payment on their next home. This enables them to make competitive, cash-like offers before they have sold their existing property, removing a major contingency and strengthening their position in the market.
Impressive Market Reach
Flyhomes' financing products are already available in 36 states. The company has built a substantial distribution network of more than 30,000 loan officers who can offer its solutions to clients across the country.
Details of the Corporate Restructuring
The transition involves more than just a change in focus. Flyhomes has taken concrete steps to divest its brokerage and consumer-facing technology assets, streamlining its operations to align with the new wholesale model.
Transitioning Agents and Technology
A key component of the restructuring is the transfer of its real estate agents. By the end of this month, all agents previously employed by Flyhomes will join The Real Brokerage, a publicly traded, tech-focused real estate company. This provides a new platform for the agents while allowing Flyhomes to exit the brokerage side of the business cleanly.
In a related move, Flyhomes also sold its consumer home search technology and associated assets to The Real Brokerage. This sale, announced in July, underscores the company's complete departure from the direct-to-consumer real estate search and transaction space.
"Instead of working directly with homebuyers, Flyhomes now partners with loan officers and real estate agents who offer the company’s products to their clients," the company confirmed in a statement about its new operational focus.
Financial Backing and Company History
This strategic pivot is supported by significant venture capital investment. The company, led by CEO and co-founder Tushar Garg, has raised substantial funds since its inception in 2016, positioning it to execute this nationwide expansion.
Recent Funding and Total Investment
In July, Flyhomes announced a $15 million Series D funding round specifically to support this shift to a wholesale model. The round included participation from prominent existing investors, signaling confidence in the new direction.
Key investors in the Series D round include:
- Andreessen Horowitz
- Norwest Venture Partners
- Canvas Ventures
- Camber Creek
- Al Goldstein
- Mark Vadon
To date, Flyhomes has raised a total of $208 million in equity funding. This includes a massive $150 million Series C round raised in 2021 during a more favorable housing market. According to the company, it has facilitated more than $7 billion in real estate transactions since it was founded.
Navigating Market Headwinds
The path to this pivot has included challenges. Flyhomes has undergone multiple rounds of layoffs in the past few years, a common trend among real estate technology firms facing the pressures of rising interest rates and shifting housing demand. The company has declined to disclose its current total headcount following the recent changes.
By focusing on its unique financing products and leveraging a vast network of partners, Flyhomes is positioning itself for a new phase of growth, adapting its strategy to the current realities of the U.S. housing market.
