This could pull demand forward – in Seattle, Atlanta, and Cleveland so far:
How does Divvy work?
Divvy is an innovative new option that combines the best of renting and owning. Our program is 3 years long, and allows you to rent with an exclusive option to buy, while simultaneously building real equity in your future home.
Our program has a few simple steps:
- You pick your dream home.
- Our investors buy the home on your behalf.
- You’ll put a minimum of 2% down and sign a 3 year lease. Every month, a portion of your payment goes towards building equity.
- Once your lease ends, your equity converts into a down payment, allowing you to get a mortgage and buy the remainder of the property. Or if you choose not to buy, our investors will sell the home and you’ll receive the full value of your equity at that time.
- Divvy allows you to save up for a mortgage while sharing valuable appreciation, all while enjoying your future home today.
FAQs:
https://www.divvyhomes.com/faq
Hat tip to Drew!
I handled several while doing Escrow. There can be issues you must be aware of. What if prices go down in the 3 years, prices go up so much owner get bitter and so on. You must use a Realtor and Escrow Company that knows what they are doing and have done these before.
Agreed, like having the rent paid through the escrow company. The lender will want to see all of the down payment deposited into the escrow company’s account, so either the escrow company has to collect the rent every month, or Divvy will have to re-deposit the same amount into escrow prior to closing.
You won’t find many – if any – escrow companies willing to hold a file open for three years just so they can collect rent every month.
What if you’re a crappy tenant? How can the “investors” nullify the contract? If you think it takes a long time to evict a tenant who knows how to play the game, this seems like a scenario that qualifies as mall lawyer porn. Saul would be all over this.
Probably why they aren’t in Cali yet? Or ever will be? 🙂