Landis, a New York-based financial technology company supported by actor Will Smith and music icon Jay-Z, is entering the Cincinnati market with a new program to help tenants become homeowners.

Founded in 2018 by Tom Petit and Cyril Berdugo, Landis uses proprietary software to assess its customers' financial health and develop a plan to help those customers qualify for a mortgage in a year or two.

Landis uses its technology platform to review creditworthiness, income, savings, and other measures to determine if you are a good candidate for the program.

According to Berdugo, customers must have a minimum of 550 creditworthiness, an annual income of $ 30,000, and 3,000 savings.

Based on their rating, Landis gives a client a budget for choosing a property, then buys the home and rents it to the client until they are ready to buy.

"It's a strategy that allows us to bet on a customer's success in following our program," Berdugo told The Enquirer, noting that each customer receives individual coaching on strategies to save on down payments, Improve their creditworthiness and generally build a stronger financial position to qualify for a mortgage.

"A lot of tenants in America are trying to buy their own home but don't know how," said Berdugo. "Our mission is to help more Americans improve their financial literacy.

take out a mortgage and eventually get a home. "

Landis, which recently raised $ 165 million in debt and equity from Jay-Z's venture investment arm Arrive and Will Smith's Dreamers VC, now operates in 47 cities in 11 states.

The states are Ohio, Kentucky, Indiana, Alabama, Georgia, North Carolina, Maryland, South Carolina, Pennsylvania, Tennessee, and West Virginia.

In addition to Cincinnati, Landis' Ohio markets include Cleveland, Akron, Columbus and Dayton.

Berdugo said the Landis program has been successful for more than 80% of its clients, despite refusing to release the company's detailed financial information.

The Landis program not only helps improve the financial literacy of low- to middle-income people who do not have access to the financial services that wealthier people have, but it also helps address the growing problem of housing affordability.

Landis only charges 3% above the price it paid for the homes it eventually sells to customers who rent them out.

MORE: Cincinnati house prices "ridiculous"

By comparison, home prices in Cincinnati rose more than 18% in the past year alone, reaching an average retail price of $ 260,000 in June, according to the latest Re / Max National Housing Report.

In addition to keeping prices in check, the Landis program is free to qualified buyers and renters.

"We want every single dollar our customers have to pay off debt or save money to help them move into the home faster," said Berdugo.

Landis has received support from the National Association of Realtors, which Landis is now bringing in as part of their "Reach" program to help brokers close more deals.

Real estate agents referring customers to Landis who are not eligible for a mortgage can remain the registered agent and collect full commissions when Landis purchases a home

for a client.

Dannel Shepard from Re / Max Time in Mason

"It's an interesting concept with star powers like Jay-Z and Will Smith," said Dannel Shepard, an agent at Re / Max Time in Mason. "Your intentions are good in providing the tenant with access to financial coaching to improve their scores and ultimately earn a home. Whether the model works in Cincinnati remains to be seen."

source https://seapointrealtors.com/2021/08/12/jay-z-backed-landis-aims-to-turn-cincinnati-renters-into-homeowners/

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