Cary Team's App aims to make home flipping simple

Lauren Ohnesorge

Dec 22, 2020

This app is meant to keep financials tied to home flipping organized.

A pair of local house flippers are raising money to develop an app they hope will make the practice accessible and easier for hobbyists and professionals alike.

Cary-based Flip Factory App is trying to raise $4 million. So far, it’s closed just $150,000 from a single investor, securities filings show.

Jake Harris, who cofounded the firm with Juan Huerta, said it’s an idea born from years of buying and selling houses. Both Harris and Huerta are general contractors in the area, and both know how complex it is to buy, renovate and flip a property.

“We talked about it with a couple of lenders and we said, we think we have a better way to do it,” Harris said. “One of the biggest concerns and risk points for flipping houses, or for any project for that matter, is the flow of funds.”

Harris said it can be a complicated chain, where lender funds go to investors who pay general contractors who, in turn, pay laborers.

With the Flip Factory App, there’s a “project wallet” where money is distributed through a software application and backed up with invoices and photos, Harris said.

“It doesn’t have a chance to be co-mingled or misappropriated,” he said how the app organizes financials.

The primary clients are the lenders, he said. Initially, Harris said the app is being designed around short-term purchases, but other, broader applications could exist. He envisions lenders requiring the digital wallet for these types of projects as a way to protect the capital. It would eliminate the middle man – allowing subcontractors to submit invoices electronically using their phone – and to get paid quickly.

Harris said the startup has been working on the app for about a year, and if all goes well it will launch in January.

Harris and Huerta met through the Triangle Real Estate Investors Association. Harris said a big part of the marketing strategy for the app will be leveraging organizations like TREIA. He plans to present the app at real estate group conferences in both Las Vegas and Los Angeles.

https://www.bizjournals.com/triangle/news/2020/12/22/home-flipping-app-financials-fund-raise-startup.html