A startup that helps renters build credit until they can buy a place is raising $165 million from a group of investors that includes Sequoia Capital, Jay-Z’s Roc Nation and Will Smith’s Dreamers VC.

Landis Technologies, founded by Cyril Berdugo and Tom Petit, caters to would-be homeowners who can’t afford to buy. The company purchases a house and rents it to the client until they can qualify for a mortgage. The client can buy it back at a predetermined price up to two years after the initial acquisition.

The model is a new spin on a rent-to-own strategy that has been employed by other companies including Home Partners of America, which Blackstone Group Inc. recently agreed to acquire for $6 billion. 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.

Read more in https://www.bloomberg.com/news/articles/2021-07-27/jay-z-and-will-smith-back-rent-to-own-firm-in-165-million-round

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