Landed, Inc.
| Private | |
| ISIN | 🆔 |
| Industry | Financial services |
| Founded 📆 | June 9, 2015 |
| Founders 👔 |
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| Headquarters 🏙️ | 548 Market Street Suite 79600, , |
Area served 🗺️ | |
Key people | Jonathan Asmis (CEO) Alex Lofton (Head of Growth) Jesse Vaughan (Head of Finance) |
| Services |
|
| Members | |
Number of employees | |
| 🌐 Website | landed |
| 📇 Address | |
| 📞 telephone | |
Landed, Inc. is an American financial services company headquartered in San Francisco, California.[1] Founded in 2015, the company provides shared-equity down payment assistance for educators in high cost housing markets.[2][1]
History[edit]
Landed was founded on June 9, 2015[3] by Jonathan Asmis and Alex Lofton, alumni of Stanford.[4] The company originated after the founders learned of a Stanford program that offered financial assistance to tenured professors purchasing homes in the Palo Alto, California area.[1] Similarly, the company was established to provide home-equity financing for public school teachers in high cost housing markets.[1] Its executive team later expanded with Jesse Vaughan joining as a co-founder.[4]
In 2016, Landed participated in the Y Combinator (YC) startup accelerator program.[5][6] The company then initiated relationships with school districts,[2] and provided its first three shared-equity mortgage down payments in the fall of 2016.[2]
In June 2017, the company received an investment from the Chan Zuckerberg Initiative (CZI)[7] to assist educators in three school districts in the San Francisco Bay Area.[2] In September 2017, it provided a partial down payment for the first educator to purchase a home with CZI funding.[8]
As of January 2018, the company had partnerships with 35 school districts in the San Francisco Bay Area.[9] Its financing program later included districts in Los Angeles, Orange County, and San Diego.[2] The company established the U.S. Educator Housing Fund in partnership with foundations to offer down payments to educators in additional housing markets.[2]
In 2019, Landed's financing program expanded to public colleges.[10][11] The same year, the company was the finance co-winner of the Ivory Prize for Housing Affordability, a national award from Ivory Innovations.[12][13] It also received approval from Fannie Mae to become an "official federally conforming down payment assistance program".[14] On April 5, 2019, the company announced its Series A round led by Initialized Capital.[15][16][17] In May 2019, the company launched its first statewide program in Hawaii.[14] It later partnered with other school districts.[18]
Business model[edit]
Landed provides up to half of a 20% mortgage down payment,[19] the percentage required to avoid private mortgage insurance (PMI).[9] In exchange, the company recoups its initial investment and shares 25% of the home's future appreciation or financial loss.[19] Its return on investment is realized when the homeowner buys out the investment, refinances or sells the property.[1]
According to Hawaii Public Radio interviews with economist Sumner La Croix and president of the Hawaii State Teachers’ Association, Corey Rosenlee, the company's business model is subject to the inherent risk of the housing market.[20][21] Its shared-equity program can contribute to significant financial liabilities for program participants.[21] The company has acknowledged that teacher salary levels can reduce access to affordable housing and limit some educators' ability to participate in its down payment program.[9][22] Critics have contended that increased teacher pay is a preferable means of homeownership versus shared-equity with a private company.[18] Its market positioning as a homeownership investment startup has been noted in the Wall Street Journal as an "unusual pitch for homeowners strapped for cash" and a "new way for investors to get exposure to rising home prices across the U.S."[23]
References[edit]
- ↑ 1.0 1.1 1.2 1.3 1.4 Rubin, James Peter (28 June 2019). "Landed, After Latest Funding, Looks to Expand Teacher Down Payment Program Nationwide". Karma. Retrieved 26 July 2019.
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 Harrington, Theresa (16 April 2018). "Bay Area district links with start-up to help educators buy homes". EdSource. Retrieved 27 July 2019.
- ↑ "Landed Inc - Company Profile and News". Bloomberg Markets. Retrieved 29 July 2019.
- ↑ 4.0 4.1 Knowles, Hannah (30 July 2016). "Startup among latest efforts to help teachers afford Bay Area housing". The Mercury News. Retrieved 28 July 2019.
- ↑ Constine, Josh; Kumparak, Greg; Dickey, Megan Rose (23 March 2016). "All 60 startups that launched at Y Combinator Winter 2016 Demo Day 1". TechCrunch. Retrieved 27 July 2019.
- ↑ Schubarth, Cromwell (23 March 2016). "Meet 29 Bay Area startups who pitched at Tuesday's Y Combinator Demo Day". Silicon Valley Business Journal. Retrieved 28 July 2019.
- ↑ Constine, Josh (14 June 2017). "Chan Zuckerberg Initiative pledges $5M to home down payments for teachers". TechCrunch. Retrieved 26 July 2019.
- ↑ Dewey, Emma (19 September 2017). "Landed looks to relieve housing crisis for district educators". MA Chronicle. Retrieved 27 July 2019.
- ↑ 9.0 9.1 9.2 Iasevoli, Brenda (30 January 2018). "This Startup Wants to Help Teachers Buy Homes—But There's a Hitch". Education Week. Retrieved 26 July 2019.
- ↑ Green, Dan (23 April 2019). "Cabrillo College launches new program to help teachers, staff find homes". KSBW. Retrieved 27 July 2019.
- ↑ Bryson, Donna (5 June 2019). "Reading, writing and real estate: Emily Griffith staff learn about a program to help Denver area teachers buy homes". Denverite. Retrieved 28 July 2019.
- ↑ Semerad, Tony (12 May 2019). "Utah's largest homebuilder is on a 'warpath' to create affordable housing. But Ivory Homes has its critics". The Salt Lake Tribune. Retrieved 27 July 2019.
- ↑ "Four innovators awarded funding to tackle housing affordability". David Eccles School of Business. 10 April 2019. Retrieved 31 July 2019.
- ↑ 14.0 14.1 Lee, Suevon (1 May 2019). "Partnership Aims To Help Hawaii Teachers Buy Homes". Honolulu Civil Beat. Retrieved 26 July 2019.
- ↑ Dickey, Megan Rose (5 April 2019). "Landed raises $7.5 million Series A to help teachers buy homes". TechCrunch. Retrieved 29 July 2019.
- ↑ Richter, Joe M. (9 April 2019). "Landed raises $7.5M Series A". Daily Beat NY. Retrieved 27 July 2019.
- ↑ Alex Lofton and Alexis Ohanian (5 April 2019). "This start-up wants to help teachers buy their own homes" (online video). Squawk Box. Interviewed by Andrew Ross Sorkin. Retrieved 26 July 2019 – via CNBC.
- ↑ 18.0 18.1 Stein, Perry (30 October 2019). "D.C. has become increasingly unaffordable. Will this program help teachers stay in the city?". The Washington Post. Retrieved 4 February 2020.
- ↑ 19.0 19.1 Lerner, Michele (30 April 2019). "Equity-share system designed to help educators become homeowners". The Washington Post. Retrieved 28 July 2019.
- ↑ Harlow, Casey (30 April 2019). "New Program Aims To Help State Teachers Buy A Home". Hawaii Public Radio. Retrieved 26 July 2019.
- ↑ 21.0 21.1 Finnerty, Ryan (17 May 2019). "San Francisco Startup Courts Hawaii Teachers Seeking Homeownership". Hawaii Public Radio. Retrieved 29 July 2019.
- ↑ Supervise, Denisa R. (30 April 2018). "Where School Employees Can't Afford Housing, Some Districts Try to Help". Education Week. Retrieved 27 July 2019.
External links[edit]
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