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Homebuilder Lennar pours $100 million into startup Opendoor

A Lennar Corp sign is displayed in front of a house. Photo: Joe Raedle/Getty Images

Opendoor, a startup that uses credit lines to purchase homes before flipping them, has raised a $35 million round led by VC firm Fifth Wall, along with $100 million in debt from home-building giant Lennar.

Why it matters: For Lennar, Opendoor represents a new channel through which to sell its homes. The two companies plan to expand a year-long test through which Lennar's customers are able to trade their homes for a new one.