The Rise of Landis: Revolutionizing Homeownership Through Financial Education and Coaching
Uncertainty in the Real Estate Market
The current state of the real estate market is uncertain, with rising interest rates making it challenging for individuals to achieve their dream of homeownership. However, this uncertainty presents an opportunity for companies like Landis, which are pioneering a new approach to making homeownership accessible to everyone.
A New Model for Homeownership
Landis was founded in 2018 by Cyril Berdugo and Tom Petit with the goal of providing a more accessible way for renters to become homeowners. Their innovative model involves clients working with real estate agents to find a home within their budget, while Landis buys the property in an all-cash offer on behalf of the client. The client then rents the home from Landis until they are ready to repurchase it using a mortgage.
Financial Education and Coaching
A key component of Landis’s model is its financial education and coaching program. This personalized, one-on-one support helps clients achieve their goals of qualifying for a mortgage and becoming homeowners. By providing clients with the knowledge and skills needed to navigate the complex world of finance, Landis empowers them to take control of their financial futures.
The Importance of Stability
According to Berdugo, "There’s a lot of uncertainty in the real estate markets right now." He notes that changes in interest rates can have a significant impact on an individual’s ability to achieve homeownership. By creating a structure where Landis sets a buyback price, clients are able to avoid this uncertainty and benefit from the stability provided by lenders.
Landis’s Growth
Since its founding, Landis has experienced rapid growth. The company was previously profiled in July 2021 when it raised $165 million in funding. At that time, Landis was operating in 29 cities across 11 states. Today, the company is active in over 50 markets.
New Funding and Expansion
In a significant development, Landis has announced $40 million in Series B funding, led by GV (formerly Google Ventures) and joined by Sequoia Capital, Jay Z’s Roc Nation fund Arrive, the National Association of Realtors’ Second Century Ventures, Operator Partners, Signia Ventures, and Team Builder Ventures. This brings the company’s total equity and debt funds raised to date to $222 million.
The Impact of Landis
Berdugo notes that the current volatility in the housing market has led clients to seek stability in their homeowner journey. The funding will be used to grow Landis’s coaching program, expand into new markets, and increase its team. By investing in financial literacy and knowledge, Landis is addressing a massive opportunity for individuals to achieve homeownership.
The Business Model
Landis makes money by buying and selling homes, rather than charging clients for the coaching program. This approach allows the company to focus on providing valuable services to clients while generating revenue.
A Bright Future Ahead
With its innovative model and commitment to financial education and coaching, Landis is poised to revolutionize the way individuals achieve homeownership. As the company continues to grow and expand into new markets, it is clear that this is a company to watch in the world of fintech.
Key Statistics:
- $40 million: The amount raised in Series B funding
- $222 million: The total equity and debt funds raised to date
- 50+ markets: The number of cities where Landis is currently active
- 29 cities: The number of cities where Landis was operating at the time of its previous funding round
- 11 states: The number of states where Landis was operating at the time of its previous funding round
Quotes:
- "There’s a lot of uncertainty in the real estate markets right now." – Cyril Berdugo, Co-Founder and CEO of Landis
- "By creating a structure where we set a buyback price, clients are able to avoid this uncertainty and benefit from the stability provided by lenders." – Cyril Berdugo, Co-Founder and CEO of Landis
