Landis Raises $40M To Keep The Dream Of Homeownership Alive For Americans

Landis Raises $40M To Keep The Dream Of Homeownership Alive For Americans

The recent housing market turbulence makes homeownership a pipedream for many Americans. Yesterday, it was sky high home prices. Today, it is increased mortgage interest rates. Landis, founded by Cyril Berdugo in 2018, is a real estate tech startup “making homeownership accessible to more Americans.” The New York City-based startup raised a $40M Series B round led by GV (formerly Google Ventures), with participation from existing investors including Sequoia Capital, Jay’s Roc Nation fund Arrive, the National Association of REALTORS’s Second Century Ventures, Operator Partners, Signia Ventures, and Team Builder Ventures.

Berdugo explains, “We buy a home on behalf of a client who rents the home from us. During that time, the client prepares for a mortgage with a Landis personal coach and repurchases the home when they are ready for it. Our coaching ensures our clients are set up for success and can achieve their dream of owning their own home.”

Landis currently has roughly 100 employees and contends against a number of competitors in the space. The startup generates the majority of their revenue from selling the home to the renter, thus turning them into a homeowner. Berdugo plans to use the money to drive continued growth and expand the company’s coaching program.

Arnita DeShields, a Landis client who uses the startup’s provided coaching program, states, “My coach was always available. I’m not the only one, but he made the time. He encouraged me and said ‘you’re not by yourself’.”

Frederick Daso: What was the inspiration behind Landis’ coaching program?

Cyril Berdugo: When we started the company, we spoke to hundreds of people who wanted to buy a house but couldn’t. Their feedback was consistent – buying a home is complicated, and the process is daunting. At Landis, we realized that if we provided a stable path, we would be able to help millions of Americans achieve their dreams of homeownership.

Most clients find Landis through our partners – the real estate agents or mortgage lender they are working with. Today, when a real estate agent or lender encounters a prospective buyer who does not qualify for a mortgage, the options to help that buyer are limited. By referring their clients to Landis, our partners are able to give their clients a path to homeownership (with the real estate agent earning their full buyer’s commission on that transaction immediately). We work with tens of thousands of agents and loan officers already.

To further bolster that path, Landis now provides free personal coaching at scale.

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For all of our clients, we provide actionable advice from experts and leave no questions unanswered. Our one-on-one coaching program sets our clients up to build up their credit, save for a down payment, and complete anything else they need to to be ready for homeownership. That is our mission and what we do well.

Daso: How was the coaching program designed to improve the overall success rate of the client?

Berdugo: Success for our clients means getting a mortgage and becoming a homeowner. Our home ownership program is designed with pre-set home buyback prices and savings plans. Our coaches provide tactical advice to support our clients throughout their entire journey. Our coaches are guides, advocates and serve as a support system for our clients.

Daso: Given the recent overall market turbulence, how has that shaped the company’s growth opportunities going into 2023 and beyond?

Berdugo: With the current volatility in the national housing market, our clients are looking for the stability and ongoing support that Landis provides on their homeownership journey. Whether interest rates are high or low, affordability is always an issue, and Landis helps clients in all macroeconomic environments.

Access to homeownership has always faced strong headwinds. Landis’ business model is designed to help Americans reach homeownership by meeting them where they are and helping them to close the gap to reach mortgage eligibility.

Our clients seek the stability and ongoing support Landis provides on their homeownership journey. In these unstable times, our work to set our clients up for financial success is more critical than ever. While we continue to tailor our coaching to meet our clients’ needs as they evolve, our business model is strong under all market conditions. Landis succeeds when our clients succeed in reaching their homeownership dreams.

With this funding round, Landis is well-positioned to continue to grow and scale so we can help more clients reach homeownership.

Daso: Where will Landis expand next to acquire more clients?

Berdugo: We currently operate in over 50 markets across the country. Beyond our current presence, there are many other parts of the country where Landis will expand in the next few years. Our goal is to expand to markets where we can help the most clients.

Daso: What key decisions set Landis up for strong growth post-Series A?

Berdugo: Since the announcement of our Series A in 2021, we’ve focused on growing the number of clients we serve, growing our team, and building more tools and products to make the lives of our clients and partners easier.

In recognizing the importance of ensuring clients are set up for long-term success, we have also gone full steam ahead in expanding the depth and breadth of our coaching program. Our Series B enables us to accelerate what we already know to be true and bring our coaching to more people nationwide.

Written by Xodas.

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