New App Helps Tenants Eventually Become Home Owners

Divvy, an app-based expense management platform, has secured a $250 million credit facility from Waterfall Asset Management, reported PR News Wire.

The Divvy Homes model involves buying homes for prospective homeowners who can’t afford or qualify to buy. The company then rents the property back to that prospective homeowner for three years, during which time the renter builds up equity credits that can be used toward buying the home from Divvy at a pre-set price.

Divvy has purchased more than 100 homes since launching in October 2017, according to co-founder Adena Hefets.

“That feels really good given how operationally complex this is,” she said. “We’ve had nothing but increasing demand over time. … We’re now gaining enough traction where there’s less of convincing that we’re a real company.”