Startup seeks $10 million to empower first-time homebuyers in the Triangle
A startup is trying to raise $10 million to help first-time buyers become homeowners in the Triangle.
Raleigh-based Ownify is looking for local investors who want to help more families buy their first homes.
Since launching in April 2023, Ownify has closed on six homes.
Ownify operates using what’s called fractional ownership. There are seven steps to the company's process:
- Apply and get pre-qualified.
- Sign legal agreements and pay $500 application fee.
- Homeowners find a home and get ready to pay a 2% down payment.
- Ownify assesses the home and makes a cash offer on the buyer's behalf. The company also takes care of earnest money or due diligence fees and the closing process.
- Homebuyers move in and own 2% equity from day one.
- Homebuyers enjoy their new home and have fixed payments for five years. Ownify takes care of repairs, property tax and homeowner's insurance. Homeowners can customize their homes, remodeling and renovations.
- Build equity in the home: Homeowners typically build between 5-10% equity by the end of year five. Homeowners can buy out the remaining equity at any time. After five years, homeowners can renew or exit the program.
People who have invested in Ownify earn from the monthly payments of the buyers, the company said.
“At first, I was like, I don’t know, I’m a little hesitant about it because it’s so fresh and new,” homeowner George House said.
George and Lydia House said they had a one-bedroom apartment.
“We wanted to start a family, and I feel like it’s easier to start a family when you have a yard and bedrooms,” Lydia House said.
As a young couple, both working commission jobs, it wasn't easy.
“I think it would have been very difficult with a traditional mortgage to be able to afford a house right now in this market,” Lydia House said.
The Houses began their search for a home in late August 2023. Their realtor told the couple about Ownify.
“There’s significantly more consumer demand [and] homebuyer demand than there is investor capital,” Ownify CEO Frank Rohde said.
Rohde said the company has not missed a mortgage payment.
“This product is really designed to help someone jump over that downpayment hurdle,” Rohde said.
Rohde said the company has more than 1,500 applicants from potential buyers. It would take about $20 million to get everyone on the company’s waitlist into a home, Rohde said.
“It would be lovely to talk to local investors, folks who want to make a difference, who want to help the local community and earn a market-rate return,” Rohde said.
The House family said it’s great to have a place to call their own. Their dog Jackson enjoys running around the yard.
“Our neighbors have grandkids and they love coming to play with him,” George House said of his dog Jackson.
Daniel Pomp explained what it’s like to be an Ownify investor.
“This is a unique and exciting opportunity to blend investing and philanthropy, while maintaining our long-term goal of supporting homeownership for our neighbors in the Chapel Hill - Carrboro resettled refugee community,” Pomp wrote in a statement to WRAL News.
