The Next Unicorns: Adena Hefets CEO of Divvy Homes, forging a new path to home ownership | E1246

TL;DR

Divi Homes is a company that offers an on-ramp to homeownership, allowing renters to eventually own the homes they live in by using a portion of their rent towards a down payment.

Transcript

hey everybody hey everybody we got an amazing episode for you today adina hephitz is with us she is the founder of divi homes and she talks about how she's helping people go from renters to home buyers and we talk about the entire real estate market and how it's changing in 2021 and how crazy it's been post-pandemic during the pandemic and this is ... Read More

Key Insights

• 👻 Divi Homes provides an innovative model for renters to become homeowners by allowing them to buy into the equity of a property through their monthly rent.
• 🐕‍🦺 The company aims to create a better customer experience by offering additional services like a brokerage to assist with the homebuying process.
• 🖤 Institutional buyers are increasingly entering the single-family rental market due to the lack of yield in other asset classes.
• 😮 The housing market faces a shortage of inventory, leading to rising home prices and increased demand for new build homes.
• 👶 Building new homes is hindered by regulations and the time it takes to get regulatory approval.
• 😘 The supply-demand dynamics and low-interest rates suggest that home prices will continue to increase in the near future.

Questions & Answers

Q: How does Divi Homes help renters become homeowners?

Divi Homes allows renters to buy into the equity of a property by paying a monthly rent that includes a portion going towards savings for the future purchase of the home.

Q: How does Divi Homes finance the purchase of homes?

Divi Homes raises debt facilities to finance the purchase of homes. They also partner with third parties who own the equity in the property and get funding through servicing and origination fees.

Q: What happens if home prices decline after a renter has been paying into the equity of a Divi Homes property?

Divi Homes may extend the lease for the renter to allow them to build more equity and wait for the right time to buy back the house.

Q: How does Divi Homes compete with institutional buyers in the single-family rental market?

Divi Homes offers a competitive all-cash offer for homes, allowing individual buyers to compete with institutional buyers. They also involve customers in the bidding process to ensure they get the best deal.

Summary & Key Takeaways

• Divi Homes was founded in 2017 to provide an alternative option for people who couldn't access mortgages but wanted to buy into the equity of homes.

• The company allows renters to buy into the equity of a property by paying their monthly rent, which includes a portion that goes towards savings for the future purchase of the home.

• Divi Homes has purchased thousands of homes in various markets and offers a more seamless customer experience by introducing additional services like a brokerage.