The start-up “Landis Technologies” raises 165 million US dollars from several investors, including Jay-Z’s record label “Roc Nation” and Will Smith’s venture capital company “Dreamers VC”. The company founded by Cyril Berdugo and Tom Petit is aimed at people who cannot afford to buy a house. The typical “Landis” customer buys a house for the first time on a budget between 110,000 and 400,000 US dollars. Investors’ US $ 165 million, which includes debt and equity, is enough to acquire around 1,000 homes within the financing range of typical “Landis” customers.
In a typical process, the start-up buys a home and rents it to customers until they can qualify for a mortgage. The model is a variant of the so-called “rent-to-own” strategy. Landis Technologies also offers customers financial coaching to improve their creditworthiness and save money on down payments. The amount of the rental costs is determined by »Landis Technologies«. In addition, the start-up charges an additional fee for a later purchase, which is added to the original purchase value.