This Week in Startups The Next Unicorns: Adena Hefets CEO of Divvy Homes, forging a new path to home ownership | E1246
Jul 15, 2021
Adena Hefets, CEO of Divvy Homes, shares her mission to empower Americans towards homeownership. She delves into how Divvy's innovative model allows renters to build equity without traditional mortgage barriers. The conversation takes a thoughtful turn discussing the current housing market, including inventory shortages and rising prices. Hefets highlights the challenges facing landlords and emphasizes the need for accessible homeownership solutions that can stabilize the market while fostering financial growth for all.
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Adena's Family Home
- Adena Hefets's parents, immigrants to the US, couldn't initially get a mortgage.
- They secured seller financing, and that home became their sole source of savings, enabling Adena and her siblings' education.
Not Subprime
- Divvy Homes isn't subprime lending because they don't offer loans; instead, they provide a savings mechanism toward equity.
- Renters build equity and share in appreciation without the debt burden of a traditional mortgage.
Divvy's Profit Model
- Divvy Homes profits from rent like a landlord, betting on reduced turnover and improved home care from invested tenants.
- Longer tenant stays and better home condition increase profitability despite not gaining from rapid appreciation.