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Cyril Berdugo along with co-founder Tom Petit the co-founder and co-CEO of tech start-up Landis founded the company in 2018, and they believe they have an answer to the housing affordability crisis.
Berdugo feels that the affordability crisis is not only because of the lack of supply in property. He says the end goal of their company is to move renters to homeownership.
According to US Census Bureau statistics, close to 43 million and 44 million people are renters and the renter-occupied units make up 30.8% of the inventory in the second quarter of 2021.
Berdugo believes that with the help of technology and by working closely with brokers and realtors, their company can help low to middle-income individuals to progress from renting to owning their own home.
The clients select a home that was bought by Landis and rents the property for up to two years meanwhile they build their credit rating and down payment. Once they are ready, they can buy the property at a predetermined price, which is usually less than 3% of the price Landis purchased it for.
The company focuses on people who are unable to get a mortgage because of their poor credit ratings.
In July, Landis led by Sequoia Capital closed $165 million in debt and Series A equity financing. Celebrities Jay-Z and Will Smith announced of them investing a combined $165 million in seed funding through their own companies, Roc Nation and Dreamers VC.
Landis makes cash offers on properties priced between $100,000 and $400,000. Clients are given a budget, by taking into account their debt-to-income ratio.
Landis is not a rent-to-own or a rent-to-buy platform, it is a homeownership program.
If a real estate agent sends a client to the company because they don’t qualify for a traditional mortgage, Landis buys a property for that client, and the agent represents Landis on that acquisition and makes their full commission.
Berdugo has his own parents’ story of facing hardships in homeownership as a motivation to this unique yet risky business.
Reference Source: MPA
