How to invest in real estate with student debt?
In this interview, the host asks how Ownify’s model enables people burdened by student debt to invest in real estate and eventually become homeowners. The representative explains that many prospective buyers in their late 20s and early 30s cannot save for a traditional down payment because of student loans. Ownify addresses this by placing each property into a limited liability company (LLC) that issues 10,000 fractional membership interests, called “bricks.” The buyer simultaneously becomes a tenant of the LLC (which holds title to the home) and a shareholder of the LLC. On day one the buyer contributes roughly 2% of the purchase price. Each month the buyer makes a payment that is split: part of it pays rent on the bricks the buyer does not yet own, and the remainder purchases additional bricks, gradually increasing the buyer’s equity stake until full ownership is achieved. This structure allows homeownership to be built over time without the large upfront debt typically required.
