Rent-to-own startup Divvy Homes expands to South Florida

A quarter of monthly rent payment goes toward a down payment

Miami /
Dec.December 07, 2020 08:45 AM
Divvy Homes CEO Adena Hefets (Twitter)

Divvy Homes CEO Adena Hefets (Twitter)

Rent-to-own startup Divvy Homes is expanding to Miami and Fort Lauderdale.

The company, which buys homes and then leases them back to renters for a period of three years, is also launching in Denver, Houston, Jacksonville, Minneapolis and Orlando, according to a release.

The renter contributes 2 percent of the purchase price after Divvy Homes buys the property, and one quarter of each subsequent rent payment will go toward the down payment for the house at the end of the three-year period. Renters can buy the properties before the period ends, or walk away from the house and cash out of their savings.

Divvy said demand for its platform has increased as people began spending more time at home during the pandemic. The company said it will work with local real estate agents to acquire the homes.

San Francisco-based Divvy launched in 2017 and has raised nearly $200 million from Singaporean sovereign wealth fund GIC, Lennar, and venture capital firm Caffeinated Capital. With the new markets, it will be in 16 cities, including Tampa, Phoenix and Atlanta.

Startup Knock recently expanded into South Florida with its home lending program, Home Swap. The program pre-funds mortgages for home purchases, allowing sellers to close on their new homes before selling their old ones, freeing up a liquidity problem.

Build-for-rent housing is also making a comeback, as many would-be first-time homebuyers rethink their plans due to a growing sense of unease about the future.






    Related Articles

    arrow_forward_ios
    Tony Cho (Photos via Metro 1, iStock)
    Tony Cho launches company focused on climate change and social activism
    Tony Cho launches company focused on climate change and social activism
    Keith Rabois and Peter Thiel with Wynwood Annex (Getty, Dwntwn Realty Advisors)
    Founders Fund, Atomic and OpenStore ink long-term leases in Wynwood
    Founders Fund, Atomic and OpenStore ink long-term leases in Wynwood
    (iStock)
    Home prices across globe hit records, prompting worries of bubble
    Home prices across globe hit records, prompting worries of bubble
    Russell Galbut and Michael S. Liebowitz (iStock)
    Two SPACs led by Russell Galbut and Michael Liebowitz each file for $100M IPOs
    Two SPACs led by Russell Galbut and Michael Liebowitz each file for $100M IPOs
    SoftBank Group COO Marcelo Claure and Mayor Francis Suarez (Getty; iStock)
    SoftBank to invest $100M in Miami startups
    SoftBank to invest $100M in Miami startups
    Marc Ferrentino and 6035 Southwest 92nd Street (REWS - David Hernandez for ONE Sotheby’s International Realty)
    Yext exec closes on South Florida home
    Yext exec closes on South Florida home
    Lennar Executive Chairman Stuart Miller (iStock)
    “The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
    “The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
    Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)
    Knock expands home lending program into South Florida 
    Knock expands home lending program into South Florida 
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...