Teachers are notoriously underpaid, and purchasing houses is notoriously pricey. This is the area where Landed, that only raised a $7.5 million Series A round led by Initialized Capital, comes from.
Landed helps teachers buy houses by providing them with down-payment aid. That is because most teachers depart their jobs because of a lack of secure housing. Back in Berkeley, Calif., by way of instance, over fifty percent of their college district workers reported that they considered leaving due to the high prices of home.
“Our mission is to help these people build financial security and help them remain committed to their communities,” Landed co-founder Alex Lofton said. “We try to stay flexible to people’s realities. We don’t require people to buy in any particular city.”
So far, Landed has helped over 200 teachers buy houses in the San Francisco Bay Area, Denver, and Seattle.
Right now, the most amount of service Landed provides is $120,000 from the Bay Area, but Lofton says people normally take that. Unlike a number of those city-run home programs, there is no income limitation with Landed.
“A lot of people we work with make a bit too much money to qualify for those programs,” Lofton said.
Landed, which oversees the capital it lays up, provides down-payment help in exchange for a reduction of the home’s appreciated value. Landed, Inc., that is an accredited real estate broker, earns money on each trade.
Considering that the influx of fresh money to the SF Bay Area through IPOs from technology businesses, Landed anticipates the market to become harder.
“With all of these economic booms in a market that’s already really supply-constrained with housing, it will be even more challenging,” he said.
While that is surely discouraging to prospective homebuyers, Landed is ready to expand to additional markets and diversify at which it provides aid.
“[IPOs] will affect us but it won’t end our mission,” Lofton said. “For the community that we’re a part of, in our backyard, it does make us all here a bit nervous.”
With the financing, Landed will have the ability to expand into more towns and function teachers beyond K-12.
“I’ve followed the team at Landed for several years in their mission of providing more equitable access to homeownership to some of the most important community members – our educators and teachers,” Initialized Capital partner Kim Mai-Cutler* said in a statement. “Not only is Landed attacking a profound issue affecting teacher retention in metros and school districts throughout the country, this is a promising market opportunity to build a trusted brand and institution to help essential professionals achieve their lifetime financial goals.”
*Kim-Mai Cutler is a former colleague of mine, but this relationship had no bearing on coverage.