This report is available exclusively to subscribers of Inman Intel, a data and research arm of Inman offering deep insights and market intelligence on the business of residential real estate and proptech. Subscribe today.
A California-based company that specializes in renovating homes before they’re put up for sale has acquired an East Coast competitor amid an ongoing nationwide expansion.
Revive announced it had acquired the Washington, D.C.-based company HomePrep in what the two are calling the first acquisition of this size in a growing segment of the real estate market.
Founded in 2019, Revive has now expanded into every U.S. state, providing renovation services for homesellers looking to maximize their home price through pre-sale renovations. The merger puts the company specializing in quick renovations nationwide closer to local labor sources doing the work at the heart of the business.
“You can’t build an amazing relationship with a roofer because you did one roof with them,” said Michael Alladawi, Revive’s CEO. “We took what is easy for me after 15 years of creating this model and establishing relationships and made it available to homeowners because it’s impossible for them to do what we do without more risk, stress, time and money.”
Revive doesn’t charge homesellers anything out of pocket to start its projects, and renovations take about four to six weeks, the companies said. They say renovated homes sell for more money, and quicker.
HomePrep founder Josh Snyder will stay on as the head of Revive’s Mid-Atlantic business. Snyder, who founded HomePrep in 2020, also owns a construction company that will work with Revive.
“My mission in creating HomePrep was to scale,” Snyder said. “By becoming part of Revive, we are able to immediately offer more services to more homeowners than ever before. Our business models are nearly identical and unlike most acquiring companies, Revive was immediately open to adopting new best practices that work better for markets” near D.C.
The Revive team essentially acts as general contractor, working with its in-house teams to oversee subcontractor activity and manage the project.
The company provides guidance to homeowners and Realtors about which renovations offer the most return on investment and covers the upfront cost of the renovations and vets contractors to do the work.
After the homes sell, homeowners pay back the rehab costs without any additional fees or interest; Revive makes money by charging the contractors in its network.
“While Revive operates nationwide, we are striving to really understand the local markets and the regional markets so that we are guiding people with the right local knowledge,” said Dalip Jaggi, Revive’s chief operating officer. “One of the best ways we can do that is for Revive to have someone with local expertise and why, in addition to organic growth, when we find the right fit for an acquisition like HomePrep, it helps us to expand intelligently and profitably.”
