Flyhomes How It Works

1) Clients are pre-underwritten, meaning Flyhomes does a deep dive into their finances before they start looking for a home to ensure they are eligible for a loan and to let them know what their budget is.

2) Initially clients get set up with a short-term loan to make a competitive cash offer. This loan is payable in as few as 10 days. One source states that this short-term loan carries an annual interest rate of about 6% (source).

3) Once the client’s short-term loan closes, they can move into their new home.

4) After the client has moved out of their old home, Flyhomes gets the old vacant home show-worthy to help the client maximize their profits from the sale. Once sold, Flyhomes' in-house mortgage team works to refinance the client’s short-term loan into a long-term loan and applies the proceeds from the home sale to the down payment. Alternatively, Flyhomes will spend up to 3 months helping clients find a lender of their choice. During this period, clients will pay costs associated with holding a new home, which is a fixed daily rate that typically ranges from $100-$200 per day.

  • Their website used to disclose the Loan Origination Fee which ranged from 0.75% - to 3.00% of the loan amount. This article still states the fee but may be outdated percentages now.

Homelight How It Works

1) Clients are pre-underwritten with Homelight loans. This is not a requirement for the program but there is an incentive to use the Homelight mortgage product.

2) Inspections and home value assessments are ordered on your home. Inspection fees are paid by Homelight and if you decide not to proceed, you get to keep the reports!
You get to keep the reports at no cost if you decide to not continue on. Value assessments are performed by your agent that has been certified for the Homelight Trade-In program.

3) Review inspections and final trade-in numbers for the initial buyout of your home. Note that Homelight buys your home at 90% of the determined value.

4) Start making offers on your replacement home. Offers can be structured with no contingencies and an accelerated closing period.

5) Offer accepted on your new home. The listing and marketing plan is created for your existing home. 
Contract signed on your existing home.
6) Homelight closes on your existing home within 10 days. Funds transferred.
7) You close on your new home.  You have up to 21 days to move into your new home.
8) You vacate your home and we get it prepped for listing.
9) Offer accepted on your home and once it closes you get a second check for the profit. 
Here is an example 

Quick Summary

Unaligned purchase and sale

There’s more risk and uncertainty when a client obtains more financing that is not theirs to buy their new home. That’s what Flyhomes BBYS does. They set a client up with a short-term loan (bridge loan) to buy their new home, then refinance it with a long-term loan. In a rising rate environment, you could end up with a higher rate, costing you thousands over the life of the loan. 

  • Since Flyhomes does not purchase the client’s old home, clients are left paying their existing mortgage and a daily rental fee on their new home until their old home is sold.
  • When pairing with Flyhomes Cash Offer, clients are vulnerable to higher refinance rates and loan origination fees due to its bridge loan mechanics.

HomeLight Trade-In:

  • Buy a client’s old home when they are ready, giving clients proceeds to put into their new home purchase. 

  • You don't have to do a short-term (bridge) loan. You lock in your desired rate when you get into a contract in your replacement home.

  • You work with your agent to prep, stage, and list your old home to maximize the home sale, not a Flyhomes agent that may not have years of experience in selling homes for top dollar.

  • You get a second check once your home sells on the open market. This unlocks real equity for a client’s new home purchase and allows them to move into their new home without worrying about their old home and with no other financing but their new mortgage. Clients avoid paying double mortgages with Trade-In. 

  • Favor their in-house agents. Clients are incentivized to use a Flyhomes brokerage agent. If they use an agent from a different brokerage they are charged a convenience fee. HomeLight has partnered with an exclusive group of top-performing agents. FlyHomes employs in-house agents.
    There is value in working with an agent that you know AND NOT one that doesn't know you.

Who is Homelight

HomeLight is a venture-backed Real Estate technology firm based in San Francisco. Its mission is to empower people to make smarter decisions during one of life’s most important moments: buying or selling their home. It does so by leveraging technology to identify the BEST Real Estate agents in the area and connect them with buyers and sellers. Through Homelight’s lending arm it has also created innovative products to take the pain and uncertainty out of the home buying process.

Meet Hero Real Estate

Our team at Hero Real Estate always has its eye on the big picture: the achievement of your goals. Whether you’re moving into your first home or moving out of the one you’ve lived in for years, we know that the journey of getting there matters. We aim to instill confidence throughout that journey — confidence in knowing that we have your back from the outset and confidence that we’re taking expert care of every aspect of your transaction.

Leading our team is Donny Piwowarski, whose mission is for us to be the heroes in your real estate experience. That’s because heroes aren’t ambiguous; they’re trustworthy, dependable, and strong. They help transform uncertainty into certainty, and anxiety into assurance. We strive to instill a sense of security and harmony into every step and every phase of each transaction. In the end, your focus shouldn’t be the relief that it’s finally over, but the jubilation of your success.

Whatever your reason for connecting with a realty, it’s always personal, but the process should never be impersonal. We certainly aren’t, and when you work with us, you’ll see firsthand how real estate agents can be heroes too.

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