Yes, you heard that right. Two of the biggest rappers of all time Jay-Z and Will Smith are helping low-income renters to become homeowners.
Smith’s Dreamers VC and Jay-Z’s Roc Nation recently made investments into Landis Technologies, a firm that buys homes and rents them out to low-income earners who are working to be eligible for mortgages.
Smith and Jay-Z aren’t the only investors, though. They join Front, Instacart, Ethos, CashApp, Flatiron Health and Tango. Together, they have helped the firm to earn more than $165 million. Landis Technologies will use the donations to buy around 1,000 homes for low-income families.
Landis also wants to change the mindset of these low-income families. Its staff is also offering coaches that will school the renters on topics like improving credit scores, money management, and other crucial information that will help them to qualify for a mortgage.
The firm’s main goal is to turn 80% of its renters into homeowners within the next two years. Once they become eligible for a mortgage, they can buy back the home for a predetermined price up to two years after Landis initially bought the home.
According to Landis co-founder Cyril Berdugo, financial inclusion is crucial to the company. One aspect that he is very proud of is how they are creating wealth for Americans with low income. They basically make money only when their clients buy back a house. So, it’s in their best interest for clients to grow financially.
Cyril added that what makes the company unique is its ability to coach virtually anyone on how to become a homeowner. Now that Landis has received this significant new funding, he aims for the business to set a bigger number of Americans on the path to becoming homeowners.
The company plans to hire more talent across the country, expand to new states, and offer a better experience for everyone involved, from lenders to partner agents and clients.
This is a worthy investment from Will Smith and Jay-Z, and it’s one to pay attention to as it will improve the quality of life for a lot of people in the country.
