![]() Divvy buys the home, with User contributing 1-2% of the purchase price (goes toward it’s savings account). Divvy touts its AI approach to credit assessment, which could enable it to identify credit-challenged users who, low FICO notwithstanding, present favorable credit risk. How it Works: After a qualification process in which Divvy assesses how much home it would buy for User (predicated on credit, income level, location), User can then shop for a house or condo. Divvy buys the home of a user’s choice and, since it may end up owning and selling the asset to someone else, its interests are aligned with those of the user in terms of selecting a home that presents good value and limited capital needs. What distinguishes Divvy from prior variants of this model is that Divvy isn’t selling run down homes purchased at foreclosure auctions while committing renters to cover code compliance required repairs and back taxes. ![]() Per its website, Divvy Homes is "…in the business of financial equality." It is a variation on the classic rent-to-own model whereby instead of buying a home outright today, a user (“User”) can occupy said home as a renter today, and purchase it from Divvy in < 3 years, by which point User should have saved ~10% of the home’s value. Why society? Most of these firms purport to advance a social mission. This series aims to provide a look beneath the corporate veneer to discern which firms create value for users, investors, and society. In April 2020, Nash and Pam were able to buy the home back from Divvy and are now the proud owners of their home.Over the past few years, as pronounced demand against constrained supply has produced outsized home price appreciation relative to wage growth, a host of venture-backed companies have emerged to address housing affordability, some offering novel solutions. “We’ve named the ducks, geese, everything, we just look out and watch it. They immediately loved their big backyard and made some new “friends”. Nash and Pam moved into their Atlanta home back in January of 2019. You can rent a home that you want to own, and Divvy provided that opportunity. “It’s a great opportunity if you’re in a good position but just don’t have the down payment yet. That’s when their realtor recommended Divvy. Because they didn’t have enough saved for a down payment, they needed to find a way to buy a home without a mortgage. ![]() Aspiring to be homeowners, they started working with a realtor. The time had come to find their own place again. While living with his sister, Nash took a principal position at an all boys school, and they were able to stabilize their finances. We ate out a lot just to get out of the house.” “ Living in a small house with so many people made living space hard to come by. “We fell on hard times and luckily Nash’s sister was generous enough to let us stay.” Pam told Divvy. Having run into a few financial hardships, Nash and Pam had to move in with Nash’s sister – it was the only option they had. They enjoy serving at their church – Nash teaching Sunday School and singing and Pam doing the multimedia. Pam works on the family business and crochets on the side with the hopes of building out an online business. Nash is an educator, which has been a lifelong calling. Meet Nash and Pam – Divvy’s newest homeowners.
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