The new Series B funding will go toward boosting the company’s homeownership coaching program, growing its team and expanding to new markets.

Join industry visionaries Pete Flint, Spencer Rascoff, Ryan Serhant and more at Inman Connect New York, Jan. 24-26. Punch your ticket to the future by joining the smartest people in real estate at this must-attend event. Register here.

Landis, a rent-to-own real estate startup backed by Jay-Z and Will Smith, has raised $40 million in a Series B funding round, bringing its total funding to $222 million, the company announced on Tuesday.

GV (formerly Google Ventures) led the round with participation from rapper Jay-Z’s Roc Nation venture capital fund Arrive, Sequoia Capital, the National Association of Realtors’ Second Century Ventures, Signia Ventures, Operator Partners and Team Builder Ventures. Arrive, Sequoia and Signia are returning investors in the company.

Landis’ total funding is a mix of equity and debt, but the company declined to say how much this round or its total funding is made up of either.

Founded by Cyril Berdugo and Tom Petit in 2018, Landis works with prospective homebuyers unable to get mortgages due to credit, a lack of savings or debt. After vetting them, Landis backs buyers with the potential to qualify for mortgages in one to two years. Landis then purchases the homes for the prospective buyers in cash and rents them to the buyers until they qualify for mortgages to buy the homes.

“With Landis’ pre-set buyback prices, clients have certainty over their down payment targets which help create a sure path,” the company said in a statement.

“Landis also provides clients with a dedicated coach responsible for paving the way to homeownership, making the difficult process of reaching mortgage eligibility easier.”

Landis will use $2 million of the new funding to boost its homeownership coaching plan to offer one-on-one credit coaching and more in-depth financial literacy education. The company will also use the new funding to grow the company’s internal team and to expand into new markets.

New York City-based Landis currently operates in more than 50 markets and 12 states nationwide.

“It’s our goal at GV to partner with category-defining companies capable of changing a sector,” said Brian Bendett, partner at GV, in a statement.

“Landis provides Americans with the confidence and security needed as they transition to owning their home. The impact Landis is having in such a difficult housing market is inspiring. We’re thrilled to be part of the journey with Cyril and the team.”

In July 2021, the company announced it had raised $165 million in a Series A funding round led by Sequoia with help from Will Smith’s Dreamers VC, Jay-Z’s Arrive and Signia.

“We’re proud to be doubling down with another investment in Landis,” Neil Sirni, co-founder and president of Arrive, told Inman exclusively in a statement.

“As part of the funding round, Landis is dedicating $2,000,000 for content and coaching on personal financial management for homebuyers, including one-on-one sessions. We love to see this level of engagement from our partners to their customers.”

Landis partnered with the National Association of Realtors in August 2021 to connect with local agents to help homebuyer clients who don’t qualify for homes. If Landis takes the client on, the agent will get a full commission if Landis buys the house, representing Landis as the buyer agent.

According to Landis, applications to the company have increased by more than seven times since its Series A announcement. The company declined to share its number of clients.

Email Andrea V. Brambila.

Like me on Facebook | Follow me on Twitter

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×