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Real Estate

Knox Financial launches new investment property products

Goal is to generate "predictable returns on a timeline"

Boston-based real estate investment proptech Knox Financial announced Monday it is launching new products on its platform that will help homeowners transform their homes into investment properties.

“For homeowners who are ready to move, Knox’s new investment property products give them a way to turn the home they’re moving out of into an investment property that generates predictable returns on a timeline,” David Friedman, CEO of Knox, said in a statement. 

Knox, which launched in 2019 and won the HW Tech100 award in 2022, analyzes market data to help homeowners price properties and generate income from their investments. Knox also relies on real estate professionals and service providers to deliver what it calls a “frictionless ownership.” ​​

Friedman said Knox takes into account a homeowner’s moving plans and financial goals before fashioning an investment property solution for them.

According to the release, these products include:

  1. Knox Certainty, which will lease a home from a homeowner at a guaranteed rate and on the agreed lease start date so that they can qualify for a larger mortgage. The product is designed specifically for homeowners who require in-hand leases to qualify for mortgages on new home purchases.
  2. Knox Peace of Mind, which ensures rental income from properties and that homeowners receive the agreed-upon rent from residents.
  3. Knox Upside, which distributes rental income to the investment property owner when a resident pays rent and enables owners to access their equity through Knox’s proprietary lending platform. 

Amber Barrett, chief revenue officer at Knox, said people can switch to Knox products as their “financial goals and risk tolerance evolve.” Barrett compares the shift to changing an asset mix in a stock portfolio.

“For instance, if you’re moving and applying for a mortgage on a new home, having a lease in hand for your old home through Knox Certainty could be particularly beneficial for your mortgage application process,” Barrett added.

Each Knox product includes guidance from a property wealth advisor, who estimates a property’s investment potential. Other services include risk management using Knox Insurance Services that bundles home and auto, property marketing and supervisory services that oversee a property, tenants and vendors. 

Clients of the company can also access Knox Lending Corp., Knox’s lending arm. Launched in 2022, its services include purchases, refinance, refinance cash out, HELOCs, and Knox Equity Access Program (KEAP) loans, the statement lists. 

KEAP loans give homeowners the capital that is equity-generated from the home they turn into an investment property through Knox. This mortgage product was launched in April 2022 for Knox’s customers in Texas to unlock equity from their properties without selling them.

In July this year, the organization announced expanding its investment property loan product offerings with a funding of $50 million in backing from real estate advisory and asset management firm Saluda Grade.

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