We’ve all heard the phrase passive income to describe how people can make money by owning rental properties. Many Americans would like to passively make money, but the process of becoming a homeowner can be daunting and challenging.
I mean, how many people have looked back and regretted not selling a property after seeing its value rise years after the sale? And those who are already landlords can be overwhelmed by the complexities of property management. One of the Boston-based startups, Knox Financial, aims to help people identify and manage rentals with its algorithm-driven platform, and has raised $ 10 million Series A to help it achieve that goal. Boston-based G20 Ventures led the round, which brought together Greycroft, Pillar VC, 2LVC and Gaingels.
Thanks to these investments, the total amount raised by Knox since its inception in 2018 amounted to $ 14.7 million. In January 2020, the company closed a $ 3 million seed round led by Greycroft. Knox co-founder and CEO David Friedman is no stranger to startups. In 2004, he founded Boston Logic, an integrated marketing platform and online marketing services for real estate agencies and agents. In 2016, he sold the company (now called Propertybase) to Providence Equity for an undisclosed amount.
Completely Safe Path
Knox launched its platform in March 2019 with the goal of offering homeowners on the completely safe path of converting their home from which they are moving into investment property. He also claims to help landlords manage their rent more easily and efficiently. During the seed round early last year, the company only operated in the Boston market and had 50 units on its platform. He now operates in seven states, has hundreds of investment properties on his platform, and oversees a portfolio of over $ 100 million.
Knox Free Ownership Platform
So how does it work? After registering property on the Knox Free Ownership platform, the company automates and controls finance and taxes, insurance, leasing and legal services, tenant and property care, banking, and bill payment. Knox has also developed a rental pricing and forecasting model to calculate the rate of return on investment a property will generate over time.