Making Home Ownership Possible – Is Divvy The Answer?

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Real Estate Broker/Owner with Kolsky Realty & Management 01311273

 

 

Making Home Ownership Possible – Is Divvy The Answer?

 

 

 

Over the past decade, the dream of owning a home keeps falling further out of reach. American wages have not kept up with rising home prices. We’ve seen tougher lending practices and we’re facing rising interest rates. Unfortunately, the current conditions don’t favor renters looking to take advantage of owning a home.

 

So, what’s the answer? How can renters become homeowners? One thing is for sure, many renters are missing out on one the best wealth-building opportunities: homeownership.

 

Now, for those of us in the business, we know something isn’t kosher the moment we hear the term “rent to own”. Rent to own sounds good but we’ve seen the results, we know it rarely if ever works out in the favor of the renter.

 

What if there was a better way to build that “rent to own” mouse trap? What if some real estate start-up company thinks they solved the

“rent to own” riddle?  Would you be interested?

 

Welcome to Divvy! Divvy’s motto “Rent less. Own more, every month”. In simple terms, Divvy makes it possible for renters to turn a portion of their monthly rent into a down payment. Basically, Divvy allows renters a path to homeownership while they amass 10 percent of its worth in equity credit over three years. After that, renters can purchase the home by paying a down payment from the monthly credits and getting a mortgage.

 

Ok, there you have it… I don’t know if Divvy is the answer but I have to say; I’m rooting for them. I don’t root for that many RE start-up companies, but I’ll make an exception and hope they can make it happen.

 

As I, Divvy believes in the value of owning a home. I am a fan of those looking to help renters become homeowners. And I am all for finding workable solutions and turning the dream of owning a home and turning it into a reality.

 

 

 

Dave Matthews Band - Digging A Ditch


 

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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Jon Kolsky  Never heard of Divvy but in our area first time home owners are big with sellers assistance  is not out of reach. Home ownership is not a thing of the past. There are many first time home buyer programs

Oct 12, 2018 03:35 PM #1
Rainmaker
2,473,549
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

I think Divvy is one of those companies we can observe for awhile and see how it works out.  I've not heard of them before.

Oct 12, 2018 06:27 PM #2
Rainmaker
1,276,380
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Jon,
This is, essentially, the kind of program I would run if I was rich... but a larger percentage of the monthly rent would go toward the down payment.  I thought of putting together an investment group but, apparently, Divvy beat me to it. I would be interested in more details. 

Oct 13, 2018 09:46 AM #3
Rainmaker
1,284,071
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Hannah Williams ~ as it relates to homeownership -I can just speak as to what's happening in my neck of the woods. And even though there are some FT home buyer programs, clearly, it is not enough (IMO)... I know a lot of folks that would love to buy a home but just can't afford to save enough needed for a down payment. 

Right now, I am working with a VA client. And because he does not need to come up with a down payment or the closing cost he is going to find a nice home (and I know so many others that would buy a home in a second if that was the case for them.)

Anyway, what we have right now isn't working for most would-be first-time homebuyers (IMO). And I hope something like DIVY just might be the answer to help more folks buy their first home

Oct 15, 2018 07:35 AM #4
Rainmaker
1,284,071
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Myrl Jeffcoat ~ DIVY is no joke, they just raised another 30 million in new funding. I agree, let's keep an eye on DIVY

Oct 15, 2018 07:38 AM #5
Rainmaker
1,284,071
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Carol Williams ~ haha - I like the new pic! Anyway, the idea is good, the goal is great, I just hope they've figured out a way to help folks buy their first home 

Oct 15, 2018 07:41 AM #6
Ambassador
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Hannah Williams
Re/Max Eastern inc. - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-953-8818

Sorry Jon Kolsky but as I said in our area there is seller assist and also mortgage assistance  .You prices are much higher then our homes are.  First time home buyer programs allow buyers to but reasonably priced starter homes

Oct 15, 2018 11:26 AM #7
Rainmaker
1,284,071
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Hannah Williams ~ no need to be sorry, your comment is very helpful! I'm glad your area programs are working well and first-time buyers are thriving! I just work with a ton on renters here in LB that need more help than what's being offered. I, for one, would like to find a good working solution for those with everything it takes to buy a home "other than the downpayment"

Oct 15, 2018 12:06 PM #8
Rainer
42,234
Tonya R. Taylor
SavvyBizBuilder.com - Columbia, MD
Tell me 1 thing you want to learn about marketing?

Hmmm, I've never heard of this before but it sounds interesting. Maybe its a good fit for the right type of buyer. 

Oct 23, 2018 03:30 PM #9
Rainmaker
656,834
Chuck Willman UtahHomes.me
Utah Homes - Alpine, UT
Utah Homes

I too have seen them as a very interesting alternative. I hope it works out for the buyers; these programs tend to be one-sided (not in favor of the renter) so I hope this one has a bit more of a win/win.

Oct 24, 2018 01:21 PM #10
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Jon Kolsky

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