Real estate investment company based in Bellevue, Washington legacy group capital announced this week that it had acquired a fintech company. rook capitalis a company that offers home equity investment (HEI) products through its Shared Value Investment brand. Legacy is private and terms of the deal were not disclosed.
“as [HEIs] “To evolve and grow into a fundamental element of the real estate market, the need to support builders with homebuyer-focused HEIs is paramount,” Legacy said in the acquisition announcement. . “Rook Capital’s award-winning platform provides best-in-class solutions for homebuyer-focused HEIs, connecting and aligning builders and homebuyers.”
Legacy CEO Scott Lercia said the company quickly identified an opportunity when considering the possibility of Rook.
“We fell in love with Rook Capital right away,” he said in a statement. “His innovative HEI products, world-class technology, and channel-driven strategy were a perfect fit for Legacy.”
Ed Messman, co-founder and CEO of Rook Capital, said Legacy’s resources also mesh well with Rook’s desire to bring its products to more potential customers. .
“By bringing together builders, investors and homebuyers, we are able to scale Rook’s vision at a pace that would not have been possible without our legacy know-how, track record and experience,” Messman said in a statement. .
According to previous reports, HEI companies have recently attracted attention from large investors. housing wire.
The market is “anticipated to grow as higher financial institutions seek to partner with mortgage lenders and real estate agents,” the report said. “Home equity contracts and rated securitizations of home equity investments also indicate that institutional investors are becoming comfortable with this asset class, reinforcing optimism for further expansion.”
Some high-end financial institutions are exploring partnerships with reverse mortgage companies. home tap CEO Jeff Glass claimed it was a “complementary” business to HEI providers.
“This is one of the things that is becoming more of an interest to us and our internal people as this industry becomes a little more known and the idea of home equity investing becomes a little more popular and understood. I think the reverse industry and other industries are starting to collaborate more and more,” Glass told Reverse Mortgage Daily in 2022.
He added that adaptability is an ideal characteristic for higher education companies as well as any industry they choose to partner with.
“The world is a big place, so there are many different solutions. As we say, just as debt may not be the right answer for some homeowners, our home equity investment may not be the right answer,” Glass said at the time.
