Will Smith and Jay-Z have teamed up to invest in a startup that helps renters build credit until they can buy a home, according to Fortune.
The two through Smith’s Dreamers VC and Jay-Z’s Roc Nation are working with investors, including Sequoia Capital, to raise $165 million for Landis Technologies.
Founded by Cyril Berdugo and Tom Petit, the company buys houses for rent for would-be-homeowners until they qualify for a mortgage, Fortune reported.
“Financial inclusion is really important to us,” Berdugo told Fortune. “An aspect of Landis that we’re very proud to be a part of is wealth creation for low-income Americans.”
Their clients are usually first-time homebuyers who have a budget between $110,000 and $400,000. Landis plans to take around 80% of its clients from renters to buyers.
“We make money when our client buys the house back,” said Berdugo. “If we leave money on the table, that’s our problem.”