Joining the initiative, Jay Z and Will Smith teamed up with Landis Technologies via Roc Nation and Dreamers VC, respectively, to aid the start-up that helps renters establish credit until they can purchase a home, and has raised $165 million for low-income renters.
The New York-based startup, founded by Cyril Berdugo and Tom Petit, aims to help would-be homebuyers who aren’t eligible for a mortgage due to low credit scores. According to Bloomberg, the company buys a property and rents it to a client until they can get a mortgage. For two years after the purchase, the client is able to buy the house back at the predetermined amount.
In a statement, Berdugo said: “Financial inclusion is really important to us. An aspect of Landis that we’re very proud to be a part of is wealth creation for low-income Americans.”
The $165 million raised will be split between loan and equity and is expected to be enough to buy almost 1,000 houses in that price range. The company’s objective is to convert about half of its customers from renters to buyers, which would be considerably higher than typical rent-to-own companies in the United States.
The company’s typical clients happen to be first-time homebuyers with a budget of around $110,000 to $400,000. Landis Technologies is currently active in 11 states including Alabama, Kentucky, and South Carolina.
Education: Computer Network Engineering, Computer Desktop Administration
Fave Song: Destiny's Child 'Dangerously in love'
Fave Colour: Grey.
With £1m what would you do: I would do my part to provide opportunities to the less fortunate. Then do my best to change the world in my own way through sports and talent building.
