Uncertainty in the real estate markets and rising interest rates have delivered a blow to people eager to own their own home.
Cyril Berdugo and Tom Petit established the company in 2018 with the aim of offering a more convenient approach for tenants to transition into homeownership, through the provision of financial education and coaching. This serves as a validation that Landis is positioned appropriately and advantageously in the current market.
Landis purchases the residence through a complete cash transaction on behalf of the customer, who subsequently leases the property from Landis. The business model of this New York-based company entails the client having a set budget and collaborating with real estate agents to locate a suitable home within that budget.
TechCrunch informed Berdugo that the company assists the client in achieving their objectives of being eligible for a mortgage to buy back the house within that timeframe.
He added, “It entirely eliminates the ambiguity. By establishing a framework in which we establish a repurchase cost, it significantly influences the capability for Americans to achieve homeownership. We emphasize the significance of the stability that lenders offer to our clients. Currently, there is a great deal of uncertainty in the real estate markets.”
The corporation stated that it currently operates in more than 50 markets, and during that period, it was conducting business in 29 cities across 11 states when it secured $165 million of financing through a combination of equity and debt. Landis was previously featured in our July 2021 coverage.
Today, the company announced a B Series funding round of $40 million, led by GV and joined by Sequoia Capital, Jay Z’s Roc Nation, Arrive, the National Realtors’ Association, Second Century Ventures, Operator Ventures, Signia Partners, and Builder Team Ventures. This funding will help the company raise a total of $222 million in debt and equity.
Berdugo stated, “We recognized an opportunity to double our capital by allocating more funds to coaching clients on homeownership, so that we can provide them with the stability they are seeking amidst the current volatility in housing markets.”
The number of applications into Landis’s program increased by seven times last year, while its team grew three times. The company’s valuation also increased with the new round, but he did not disclose revenue metrics, which declined similar to last year.
Once clients achieve these objectives, they can acquire ownership of their residence and obtain a mortgage. By accumulating savings and enhancing their credit record, clients can reach important stages with the assistance of a personalized, one-on-one support system provided by the coaching program. The company will allocate $2 million specifically for its coaching program from the recent investment. This will result in team expansion, the addition of new markets, and the growth of Landis’s two-year coaching program through the funding.
Berdugo explains why coaching for homeownership is a significant opportunity for them, as we are knowledgeable and financially literate in investing. Landis does not charge for the coaching services and generates income by buying and selling homes.