Ribbon Home: iBacking for Real Estate
In November 2018, Shaival Shah, the founder and CEO of Ribbon Home had to decide on the next steps for the company. Ribbon had introduced a program that backs consumers with cash offers without creating a loan structure in order to help them compete with iBuyers, such as Zillow Offers and Opendoor. Ribbon had experienced a successful launch in Charlotte, North Carolina which prompted urgent strategic questions. Among them was the appropriate funding model - whether Ribbon be mainly a platform for others to fund transactions, or should it buy and hold homes on its balance sheet, which it could securitize and sell using a line of credit.