Landis Technologies, a rent-to-own firm founded by Berdugo and Tom Petit, is a startup that caters to consumers looking to own homes but can't afford the necessary capital for a downpayment. The company buys homes and rents it to tenants until they can qualify for a mortgage.
Landis Technologies recently received notable funding from celebrities Jay-Z's Roc Nation and Will Smith’s Dreamers VC, as well as Sequoia Captial and others for the sum of $165 million. "Financial inclusion is really important to us," said Berdugo. "An aspect of Landis that we’re very proud to be a part of is wealth creation for low-income Americans. We make money when our client buys the house back," said Berdugo. "If we leave money on the table, that’s our problem."
Celebrity-Backed Rent-to-Own Startups
Jay-Z & Will Smith Back Rent-to-Own Firm Landis Technologies
Trend Themes
1. Rent-to-own Solutions - New rent-to-own startups are providing an affordable path to homeownership for consumers who can’t afford a large initial down payment.
2. Social Impact Investing - Celebrity-backed funding is bringing attention to the social value of financial inclusion solutions.
3. Alternative Real Estate Models - Rent-to-own firms are challenging traditional real estate models and creating new opportunities for investment and wealth creation.
Industry Implications
1. Real Estate - Rent-to-own startups like Landis Technologies are disrupting the real estate industry and providing a new avenue for homeownership.
2. Fintech - The growth of rent-to-own startups is enhancing the FinTech sector's ability to offer affordable and adaptable financial solutions.
3. Venture Capital - High-profile funding, like from Jay-Z's Roc Nation and Will Smith's Dreamers VC, is creating innovative investment opportunities in social impact and alternative real estate models.