Crowdfunding real estate down payments from the community

Landed helps buyers crowdfund their deposit from neighbors, bosses, and colleagues, who receive equity on their first home in exchange.

A huge part of the population are currently excluded from the property market, due to unaffordable downpayment requirements. Of course, there are those whose family can help them get their first foot on the ladder, but there are very few solutions for the rest. Urban real estate startup Landed hopes to solve this by enabling prospective buyers to crowdfund their down payment within their community, in exchange for equity on their first home.

Landed works with organizations such as schools, universities and local businesses to help first time buyers raise debt-free funds for their home. The startup recruits company executives, parents and alumni to invest in the homes of great employees, so that they can continue to live and work in vibrant cities such as San Francisco. Landed then acts as a mediator between the co-owners of the property.

But could this foster nepotism, and discourage equal opportunity housing?