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Mynd, backed by Invesco Real Estate funds with a $5 billion mandate in 2021, is in advanced discussions to merge with Roofstock amidst a stagnating market for home sales, spurring consolidation within the single-family rental sector.

Both companies utilize technology to facilitate the purchase, sale, and management of rental properties. Sources familiar with the negotiations, who requested anonymity, revealed that the potential deal could be finalized and announced within the week, although discussions remain fluid.

If completed, the merger would bring together Mynd's CEO, Doug Brien, and Roofstock's CEO, Gary Beasley, who previously collaborated to establish Waypoint Homes, an early player in single-family rental aggregation.

Brien, a former NFL player, founded Mynd with a focus on tech-enabled property management. Boosted by growing interest in rental properties in 2021, Mynd secured a partnership with Invesco, aiming to deploy up to $5 billion for home acquisitions.

Invesco also led a $40 million financing round for Mynd, valuing the company at approximately $300 million. Meanwhile, Roofstock, known for its tech-driven approach to real estate investing, achieved a valuation close to $2 billion in 2022.

Amidst sluggish acquisitions, attributed in part to rising interest rates, consolidation has become a trend in the industry. Invitation Homes recently finalized property management agreements with Starwood Capital Group and Nuveen's real estate arm. Additionally, Pagaya Technologies acquired property management firm Darwin Homes last year.

Original article posted on May 13, 2024