Is rent to own the solution to helping more people find a path towards home ownership?
Divvy Homes thinks so.
They’ve got a unique approach by buying the home for the consumer, then renting it back to the consumer for up to three years. During this time the consumer gets the stability of living in their forever home (or next 5-10 years home) and builds up credit towards purchasing the home back from Divvy.
Although they’re based out of the bay area, Divvy has their sights set on areas that are ripe for growth and currently seeing lots of renovation: Memphis, Cleveland, and Atlanta.
If this model pans out well, I could see Divvy moving into other cities like Detroit, Nashville, and Pittsburgh.
There are some complications that come with a rent to own transaction though. Do you know anyone that has ever purchased a home through a rent to own contract? Have you ever closed rent to own as a realtor? Let me know what the experience was like for you.
Check out the Tech Nest Podcast –
Tech Nest, the real estate and tech podcast hosted by Nate Smoyer, CEO of Real Team Panda.
The purpose of this show is to highlight the founders and leaders of companies who are working to transform the way we buy, sell, and invest in real estate.