Knox Financial Announces $50M Backing from Saluda Grade for Investment Property Loan Products

Capital will allow Knox to launch and scale its series of loan products designed to make it easier for people to turn the homes they’re moving out of into reliable investments

BOSTON, June 29, 2022 — Knox Financial, the fintech company making it easy to turn the house you’re moving out of into a reliable financial asset, today announced that the company will expand its investment property loan product offerings with the backing of $50 million in forward flow capital from Saluda Grade, a real estate advisory and asset management firm. 

“A homeowner’s best investment is the home they live in — far better than the returns we’ve seen from the stock market in 2022, and a great hedge against record-high inflation,” said David Friedman, co-founder and CEO of Knox Financial. “With the support of Saluda Grade, Knox can now help even more homeowners who are moving hold on to their best investment. Our loan products will give people the easiest way to remove short-term cash constraints that can come with buying a new home while keeping the old one as an investment property.”

For homeowners who are moving, Knox Financial provides the people, technology, and services that make it easy for them to buy their new home and keep their old house as a reliable financial asset. Knox was named one of the HousingWire Tech 100 in 2022, and recently announced Knox Equity Access Program (KEAP) loans, the company’s first mortgage product. Knox will use the $50 million in capital from Saluda Grade to expand its lending business into Georgia, as well as offer a number of additional loan products for people who are putting their homes on the Knox platform. Knox Financial’s loan products will include KEAP loans, HELOCs, new purchase loans, mortgage refinances, and cash-out refinancings. 

“Since launching in 2019, Knox Financial has demonstrated to homeowners across the U.S. that they can build better financial futures for themselves and their families by holding on to their former homes as rentals,” said Ryan Craft, founder and CEO of Saluda Grade. “The company is well-positioned to fundamentally change how homeowners think about buying and selling properties, and we look forward to seeing them grow significantly in the coming years.” 

Knox Financial is scaling its loan business at a time of rapid expansion for the company. Over the last year, Knox has expanded into new markets across the US, doubled its staff, and added more than 1000 clients.

About Knox Financial 

Knox Financial makes it easy to turn the house you’re moving out of into a smart financial asset and still afford your new home. Knox offers the people, technology, and financing to take the hassle out of owning investment property, and enable homeowners to make more money from their investment property. To learn more, visit www.knoxfinancial.com.

Knox Lending Corp(NMLS # 2263297) is a wholly owned subsidiary of Knox Holdings Corp. 

About Saluda Grade

Founded in 2019, Saluda Grade (“SG”) is a vertically integrated advisory and asset management platform focused on investments in alternative lending, fintech, real estate debt & equity, and hard assets. SG is led by Ryan Craft and the executive team, who have over 75 years of combined mortgage, structuring, investment, and origination experience.  The SG team comprises over 20 professionals, many of whom possess significant multi-sector residential real estate and mortgage expertise. SG is headquartered in New York with offices in Aspen and Atlanta.

Saluda Grade (“SG”) is a vertically integrated advisory and asset management platform focused on investments in alternative lending, fintech, real estate debt & equity, and hard assets. The Saluda Grade Opportunities Fund LP (“SGOF” or the “Fund”) is an evergreen investment fund established to take advantage of SG’s unique market position and ecosystem. The Fund invests in SG-issued as well as third party-originated mortgage-backed securities, real estate-backed loans, and other housing and consumer-related opportunities. SGOF creates bespoke financing structures to acquire assets while investing at the optimal point in the capital structure to maximize reward per unit of risk. The Fund’s goal is to generate an attractive return with low volatility and consistent cash flows derived from collateralized, short duration, high current cash flow loans, and securities. SG is led by Ryan Craft and the executive team, who have over 75 years of combined mortgage, structuring, investment, and origination experience.