With real estate prices at record highs all across the country, owning a home is becoming more out of reach for first-time homebuyers.
For millennials and Gen-Z, saving enough money for a downpayment has become a huge challenge, much harder than it was for their parents or grandparents. A huge problem like this calls for a creative solution.
Our next guest on the Fintech One•On•One podcast is Adena Hefets, the CEO and co-founder of Divvy Homes. They have created a unique pathway to homeownership by rethinking the much-maligned rent-to-own model.
With Divvy, people can search for their dream home, and when they find it, make a compelling, all-cash offer on behalf of Divvy. Divvy will buy the home and then rent it back to them, with a portion of the rent payments being used to build equity.
(Since recording this episode Divvy announced their Series D funding round that brings their valuation to $2 billion).
In this podcast you will learn:
- The idea that led to the founding of Divvy.
- Adena’s take on the unusual housing market we have today.
- How Divvy works for people looking for a new home.
- The typical profile of a Divvy customer.
- Why the mortgage loan is essentially unchanged since the 1940s.
- What they focus on in their underwriting process.
- How Divvy makes money.
- Why customers in some markets can buy their house off Divvy for less than the market price.
- How they calculate the appropriate price for rent.
- How demand has changed since the start of the pandemic.
- How they are getting the word out and educating the market about their product.
- What the economics looks like from a realtor’s perspective.
- The different markets they operate in today and how they choose new markets.
- The number of homes a month they are bidding on today.
- How they approach the capital markets.
- Their biggest obstacle for growth today.
- Adena’s vision for Divvy Homes.
Download a PDF of the transcription of Podcast 311 – Adena Hefets.
Click to Read Podcast Transcription (Full-Text Version) Below
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