Ownify

Ownify operates a platform that facilitates a fractional homeownership model, designed as an alternative to traditional mortgages for first-time homebuyers. The company, founded in 2022 by Frank Rohde and Ben Herold, partners these buyers with investors to acquire homes. Rohde, the CEO, has a background in mortgage pricing analytics, including a tenure as CEO of Nomis Solutions, while COO Herold previously managed the acquisition of over 5,000 homes at Divvy Homes. Their collective experience in the mortgage and real estate industries highlighted the systemic difficulties faced by first-time buyers, leading them to create Ownify.

The business model allows homebuyers, referred to as "Ownis," to purchase a home with an initial contribution of as little as 2%, with Ownify and its network of investors covering the remaining 98% through an all-cash offer. This structure positions buyers more competitively in the market. Ownership is divided into 10,000 fractional shares called "bricks," and the homebuyer starts with a 2% stake (200 bricks) from day one. Each month, the buyer's payment includes an occupancy fee (rent on the portion they don't own) and a component to purchase additional "bricks," gradually increasing their equity stake in the property. After five years, the buyer typically owns about 10% of the home and has the option to buy the remaining equity, cash out their stake, or potentially renew the term.

For homebuyers, the primary benefits include a significantly lower down payment, fixed monthly payments, and building equity without the debt burden of a mortgage. Ownify also covers costs like maintenance, insurance, and property taxes. For investors, the model offers the opportunity to invest in single-family residential real estate, targeting returns of 15-21% through passive income and long-term appreciation. Revenue is generated from the occupancy payments made by homebuyers and the eventual sale of the company's equity in the homes. The company primarily operates in markets such as Raleigh, Charlotte, and Nashville. Since its launch, Ownify has raised $11 million in funding from investors including Lobby Capital, Gaingels, and Socially Financed.

Keywords: fractional homeownership, real estate investing, proptech, first-time homebuyers, rent-to-own alternative, co-ownership, shared equity, property investment, impact investing, mortgage alternative, real estate financing, single-family homes, home equity, affordable housing, residential real estate, real estate technology, down payment assistance, cash offer, real estate platform, accredited investors