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New startup could help teachers buy Bay Area homes

Original post made on Aug 8, 2016

School districts in Mountain View have acknowledged that the high cost of living is putting the squeeze on teachers, making it hard for them to keep up with monthly rent and nearly impossible to buy a home. A new venture kicked off by two Stanford grads is looking to change that, and turn long-term renters into first-time home buyers.

Read the full story here Web Link posted Friday, July 15, 2016, 12:00 AM

Comments (1)

Posted by Outside MV
a resident of another community
on Aug 8, 2016 at 1:42 pm

Maybe this is a good alternative to taking away school sites for housing, but investors and potential clients should get more details as real estate transactions involving multiple parties can get complicated.

"Investors would have a stake of about 25 percent of the future profits, or losses, when the home is sold or refinanced."

So if the value goes down, are the investors wiped out first, or the teachers, or proportionally? Landed's website lacks details about potential losses.

What happens at the end of 7 years, if Landed is no longer around, and if banks don't want to refinance? Most startups don't make it.


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