Rent to Own Trends of the Future: How One Startup is Transforming Ownership

Started operations this year with $7 million in funding, now it has $30 million.

Homeownership has countless roads, traditional and non-traditional. Among those methods is the rent to own approach, brought from Europe to the United States in the 1950s and has become one of the most underrated strategies to buy homes. Consists of renting a house for a certain time with the compromise of buying it before the lease ends, offering you an extraordinary opportunity to live inside the property before time.

 
The real estate sector has seen some important innovations since the turn of the 21st century, the arrival of new technologies (like high-speed connectivity, smartphones, 2.0 apps, and social media) has been the main disruptive factor that has defied the long-standing rules that once held the pillars of this industry. 


One company with serious advantage thanks to its admirable sense of risk is Divvy, a startup that wants to re-invent the rent to own landscape with the use of contemporary tools. Raising $30 million in venture capital from well-known investors like Scifi Venture, Caffeinated Capital, and DFJ. 

 

The Divvy System 

To differentiate themselves, the experts from Divvy have created a plan reducing the number of steps before you can set a foot in the house. 

You will have the possibility to choose a home for sale. 

Then, Divvy buys it. 

Next to that, you’ll have to pay 2 percent of the total value and a monthly amount for rental and equity purposes. 

Those last details lead up to a 10 percent equity credit in three years. 

With professional assistance, you’ll be mortgage-ready to buy the home in that period of time. 

“We cross the lines between renting and owning, preventing renters from using up all their income on rent, and providing better alignment between both parties.” Divvy’s executive Alex Rampell said to the press.


Official reports from the company indicate outstanding success in cities like Memphis, Atlanta, and Cleveland, their current and strongest markets. With more than 2000 applications per month, Divvy becomes one big example of how the needs of future homebuyers need to be addressed more quickly and effectively from 2018 and beyond. 

 

The REAL Helpers bridge the gap between the haves and haves not. In short, our mission is to help people who are struggling to become homeowners and have no way to get ahead of their monthly expenses. We freely offer our service to the people that need it most, with the hope of strengthening our economy one family at a time.

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