Jay- Z and Will Smith are two of the biggest names in the music industry, but this year the moguls have broken yet another record. The two powerhouses have recently joined forces and invested 165 million in fintech start-up company Landis and further expanded their reach in the real estate game!
The company was founded by Cyril Berdugo and Tom Petit. The goal of Landis is to provide individuals with an easy and seamless way to adjust from renting to homeownership The platform targets individuals who do not traditionally qualify for a mortgage. Landis states that it can approve credit scores as low as 550 and a 2,500 monthly combined income. If you fall into this category, it may be worth it to give this platform a try.
Individuals who use the platform will have the opportunity to find their dream property, rent it, build their credit and then prepare to purchase the property. In short, it is a platform where you can find rent-to-own property. Platform users will receive individualized financial literacy training and coaching. Having these tools at hand could help them take their first steps to homeownership.
This platform could be substantially beneficial to many Americans, particularly those historically underserved. For example, the homeownership rate among Black people has not increased in approximately 30 years. This is astounding and needs to change; a platform like Landis could potentially be that change. With continued investment from moguls like Jay-Z and Will Smith, the rate of homeownership could dramatically increase. Now that’s exciting!
Sounds like another major hit for these two moguls -- and I'm not talking about albums. These two moguls could leave an even greater legacy by investing in a platform that helps individuals achieve their American dream.
American financial literacy
Not only will Jay-Z and Will Smith's investment help individuals achieve the American dream, it will also provide financial coaching through the platform, which users will receive when they sign up for Landis. This is a much-needed move in today’s America.
According to the 2018 National Financial Capability Study, when asked, only one-third of adults could answer at least four of five financial literacy questions on fundamental concepts such as mortgages, interest rates, inflation and risk. This is astonishing given that many aspects of life require financial knowledge. According to the U.S. Financial Literacy and Education Commission, Americans must acquire financial skills and knowledge to fully participate in the dynamic and growing economy. For this reason, the work that Jay-Z and Will Smith are doing in conjunction with Landis is more important than ever.
The American dream
Landis works with individuals who have bad credit or trouble securing a loan. The client based the platform's technology to determine if the individual can afford to qualify for a mortgage in the next 12 to 24 months. That is a quick turnaround for many who do not believe that home ownership is possible. For many, this may be the perfect time to beef up their credit while American real estate developers are working on increasing the housing supply.
Tax benefit of home ownership
Not only will purchasing a home give individuals the opportunity to bask in the pride, individuals will also be able to take advantage of the tax benefits associated with home ownership. Homeowners have the opportunity to potentially claim a deduction for mortgage interest and property tax payments. This is a benefit that renters do not get.
Millionacres bottom line
Jay-Z’s partnership with Will Smith and Landis proves that (to borrow Jay-Z's iconic line) he is not a businessman, he is a business, man! This year he and Will Smith are using their business acumen and stardom to draw consumers to an incredibly useful platform.
Landis is helping to keep that dream of homeownership alive for many who may believe it's out of sight. If you have less-than-perfect credit, homeownership doesn't have to be out of reach. Giving Landis a try could help your dreams come true.