Superstars Jay-Z and Will Smith have combined forces as investors in real estate startup, Landis Technologies, which aims to turn renters into home owners using a rent to own financing model.
Through their respective companies, Roc Nation and Dreamers VC together with other investors helped Landis raise over $165 million.
The cash will go toward purchasing about 1,000 homes which will then be rented out to low-income families until they qualify for a mortgage.
Landis Technologies hopes to turn 80 percent of their renting clients into homeowners after two years. They will look to coach clients on how to best save money, improve their credit scores and help them learn to manage their finances more efficiently.
A similar rent-to-buy model of home ownership exists in Ghana, but unofficially. It’s built on understanding and trust between renter and landlord, but is totally unregulated. This can be a recipe for disaster when one party breaches the terms of the agreement.
What exists on the institutional level however is the Buy to Let model, which simply helps house owners acquire another property and the first time buyer’s mortgages.
As mortgages become more popular and government actualizes the proposed Real Estate Investment Trust’s Rent-to-Own scheme (aimed at fueling affordable housing) and also, hopefully puts up measures to control lending, this could be a useful model for young first time home owners in Ghana.
Source: HipHop DX