Will Smith and Jay-Z are dishing up some big money, but it’s not for something bougie like big cars or fancy houses.
The superstars are coming together to invest in people.
What does that even mean?
Jay-Z’s entertainment company, Roc Nation, and Will Smith’s venture capital fund, Dreamers VC, have invested in a startup that helps people build credit and also work towards owning their own homes.
The name of this startup is Landis Technologies, and its purpose is to help those folks who currently rent their homes with no way in sight of ever owning their own homes.
These renters Landis targets are individuals who don’t have enough credit to qualify for their own mortgages. They may be great, upstanding individuals, but they can’t get out from under their financial situation.
As part of its service, Landis provides coaching for clients on how to manage their finances to improve their credit and save the amount they need for a down payment.Bloomberg
Basically, it is a rent-to-own plan that incorporates counselling for individuals on how to bring up their credit and save the money they need to eventually purchase the home.
This comes at just the right time, as the cost of purchasing homes is skyrocketing a bit out of control.
Landis has currently raised $165 Million through investors, and they are going to use that money to purchase 1,000 homes. They will use the homes they acquire to help convert their clients from house renters to home buyers.
Now, this program is aimed at low-income, first-time buyers who can manage a budget between $100K and $400K.
Landis will rent them a home at about the same cost that it would take to manage the monthly mortgage.
Your monthly payments include rent and a portion that builds up your down payment. We also ask for a security deposit when you move in.Landis
Under this Landis program, the renter has one to two years in order to get their finances under control and save up for a down payment to purchase the home.
If, for some reason, the client isn’t able to purchase the home in 2 years, Landis will do one of two things. Either they will extend the time that the client has to purchase the home OR they will sell the home to someone else.
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.Cyril Berdugo, co-founder of Landis
Landis operates in 11 states: Alabama, Georgia, Indiana, Kentucky, North Carolina, Maryland, Ohio, South Carolina, Pennsylvania, Tennessee and West Virginia. BUT, if you live outside of these areas and need help, reach out to the company.
If you think you would qualify for the Landis program, and you live in one of these 11 states, you may go HERE to fill out an application.