Divvy homes, good or scam?
Divvy claims they buy house for you and you can rent the house until you can afford to buy it. This looks exactly like what banks were doing before the 2008 crisis where they don’t check your credits when giving you house loans. Is this a scam? Where do they get all the money to buy houses?
Actually sounds like a solid business model and plan for those that can't pay all cash. In today's market, buyers are paying all cash for homes and Divvy does the same. It enables you (potential buyer) to essentially make an all cash offer on a house.... and get into a lease to own arrangement with Divvy. There are a couple companies that do similar. Some will help you buy a house in all cash and you have to refi after a certain amount of time so they get paid out their investment. Divvy is nothing new other than the Lease-to-own model following an all cash purchase.
I heard this business model, where do they get the cash to buy all these houses in cash? Sounds like they’ll be solid when housing only goes up, but implode once there’s a correction, especially if they used leverage
They basically do the same thing as banks and loan you money to buy house, the only difference is the seller thinks you’re paying all cash
Just see how much a mortgage would cost in your area and compare it to your rent. Put the difference in a savings account and don’t touch it. In a few years you can then use that money for a down payment on a house. All that without having to pay a middleman
That works, I’m just trying to understand this new company