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Property marketplace Sundae, which promises to help homesellers “skip the hassle” of working with real estate agents by marketing their properties “as-is” directly to investors, has laid off 15 percent of its workforce.
The layoffs were targeted “primarily in our youngest markets,” Sundae CEO Josh Stech said in a statement provided to Real Trends.
Inman was unable to reach Sundae’s Director of Communications and Public Relations Lindsey Ruthen, whose Sundae.com email account was disabled. A public relations firm providing services to Sundae confirmed the layoffs took place but did not immediately respond to questions about the number of employees laid off, the departments affected or the company’s plans.
Launched in 2019, Sundae is licensed as a real estate brokerage in 11 states: California, Colorado, Florida, Georgia, Nevada, North Carolina, South Carolina, Tennessee, Texas, Utah and Washington. In September, Sundae unveiled an off-market distressed property platform for investors, following an $80 million Series C funding round last summer.
In February, Sundae announced a new lending service for investors, Sundae Funding Inc., available at launch in California, Florida, Georgia, Texas and Colorado. At that time, Sundae said it had also expanded its services to “as-is home sellers” in Charleston, South Carolina, with additional launches planned for Greenville, Myrtle Beach, Charlotte, Raleigh-Durham and Nashville.
Sundae joins several mortgage and real estate companies that have laid off employees this year, as the Federal Reserve’s efforts to combat inflation by raising interest rates raise worries about a decline in home sales and a potential recession.
For Zoey Cigar-Hodge — named “one of Better.com’s top female originators” by Mortgage Professional in 2020, after closing more than $134 million in loans in her first year at the company — it was the second time this year she’s had to look for a new job. Cigar-Hodge had landed at Sundae as a sales enablement manager after being laid off by Better in March, only to find herself swept up in another round of downsizing.
“I’m back after being impacted by another mass layoff at Sundae,” Cigar-Hodge posted on LinkedIn last week. “I had a feeling something was going on but now I know, and have been actively seeking new opportunities. Message me if you’re hiring I’d love to connect.”
Sundae CEO Josh Stech and company spokesman Phil McGraw (“Dr. Phil”) in a promotional video Credit: Sundae.com.
Sundae promises homeowners it can “take the stress out of selling your home and get the best price” with “no repairs, cleaning or showings,” marketing its services through a partnership with Phil McGraw, the television personality better known as “Dr. Phil.”
Sundae’s platform allows investors to view, filter and sort available distressed properties exclusive to Sundae, as well as submit cash offers and track them in real-time.
According to Sundae’s website, the company is currently active in 26 markets: Atlanta, Austin, Charleston, Dallas, Denver, Fort Lauderdale, Fort Myers, Fort Worth, Fresno, Greenville, Houston, California’s “Inland Empire” (Riverside and San Bernardino counties), Jacksonville, Las Vegas, Los Angeles, Myrtle Beach, Nashville, Oakland, Orange County, Orlando, Sacramento, Salt Lake City, San Antonio, San Diego, Seattle and Tampa Bay.
RealtyTrac offers a similar platform for investors in the market for distressed or foreclosed properties, with financing options available through various partner lenders.
RES.NET, a technology platform provider for loan default management, operates a real-estate owned (REO) portal to help banks, mortgage lenders, loan servicers and real estate brokers coordinate to dispose of REO properties owned by lenders. RES.NET’s subscription-based agent membership gives real estate agents the opportunity to win REO listings from loan servicers and manage their properties.
Editor’s note: Inman has created resources for newly jobless real estate pros, including a Talent Pass providing free access to the upcoming Inman Connect Las Vegas.
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