Noah (Patch Homes)

The company's service was structured as a partnership, not a loan. This meant homeowners received funds without incurring new monthly payments or interest, a key differentiator from home equity loans or HELOCs. Noah's revenue was generated when the homeowner decided to sell the house, refinance, or buy back the equity at the end of the 10-year contract term. If the home's value increased, Noah shared in the gains; if it decreased, Noah shared in the loss. The company targeted homeowners in select metropolitan areas across states like California, Washington, Oregon, Utah, and Colorado. To qualify, homeowners typically needed a credit score of at least 580 and a minimum of 15% equity in their property.

Cofounder Sundeep Ambati brought a deep real estate background to the venture, with a Master's Degree in Real Estate Policy and experience working for a real estate investment trust (REIT) through its IPO in 2015. This expertise was integral to developing the company's property investment model. Noah's underwriting process was data-intensive, reportedly leveraging 80 billion data points across over 60 variables to assess each investment beyond just a credit score. Throughout its operation, Noah secured significant funding, including a notable $150 million in platform capital in April 2020 to finance its equity-sharing contracts. The company's venture investors included Union Square Ventures, Tribe Capital, Breega Capital, and Techstars Ventures. Keywords: home equity agreement, equity sharing, Noah, Patch Homes, home equity investment, debt-free financing, property technology, fintech, real estate finance, Sahil Gupta, Sundeep Ambati, home value investment, alternative finance, shared equity mortgage, residential real estate, homeowner financing, non-debt equity, property investment, US real estate market, venture capital