What’s happening?
The venture, called Prophet Homes, will establish an investment fund and marketplace for purchasing real estate assets within DFW, Austin and San Antonio. Prophet Homes aims to raise more than $100 million from limited partners for the fund, according to a news release.
Welker Properties launched Prophet Homes on April 1 in DFW. The venture is expected to launch in the Austin and San Antonio markets in May, said Andrew Welker, founder and CEO of Welker Properties. Welker said there are also plans to launch in Houston by the end of 2024.
The details
Prophet Homes aims to simplify the buying-and-selling process for real estate assets through a marketplace, according to the news release. With the fund, Prophet Homes will focus on buying and selling existing single-family homes ranging from $250,000-$275,000 in price, Welker said.
“Our niche right now is build-to-rent communities,” he said.
Some homes will be sold to investors in the marketplace, and others will be held within the fund to be rented out, Welker said.
“[The fund] just helps us in that same market that we believe in, which is single-family home markets,” Welker said.
Prophet Homes aims to hire 300-400 agents and employees across Texas in order to meet investor demands, according to the news release. Welker Properties also plans to partner with Prophet Homes’ acquisitions team in developing new sites in Austin and DFW.
The background
The real estate market in Texas is familiar ground for Welker and the team behind Prophet Homes. Before Welker Properties, Welker cofounded New Western in 2008, another real estate investment company based in Texas.
While real estate prices have gone up in Texas, Welker said the state’s business-friendly environment growth potential makes it a good market for Prophet Homes. Acquisition teams can find real estate assets that will work for the fund’s purposes, he said.
“Texas has always been our strong suit,” Welker said.
