Indian Startups Community

by Learningmind

Stealth

a year ago

Startup Idea- Homeownership made easy!

Hi guys, here is the idea, lets say person A would like to buy a house and he doesn't have down payment and also might be getting loan at a higher interest rate. We will come into picture buy the house for him and rent him for next 3 years, in next 3 years he will build his credit score, pay rent+ some portion of down payment at the end of contract he will get loan from bank and we exit. If A would like to exit from the contract has to pay some penalty and can walk away. Benefits for the company- get a stable tenant who will keep the house like its their house, setup fee, investable down payment Benefits for the customer- have 3 years of time to decide if they would like to buy the house, easy to build the corpus, can get loan at cheaper rates

Kotakachori11

Freelancer

a year ago

Bura mat maanana but wont work. You are basically becoming a makaan maalik on investment money or an NBFC for real estate. -What will be the collateral ? Cibil score criteria ? NBFCs get ugly to get their wasooli. Will you be too ? - you can't change the factors that stopped him from getting a loan in the first place. 3 saal mein magic nahi hoga. I can say with guarantee aisa insaan penalty bhi nahi dega aapke contract ki. - and if he can change circumstances in 3 years he wouldn't need you or approach you in the first place. -how do you manage property rate fluctuations, delayed projects, litigations, NPAs in banks, Please sit with more people in construction before going forward. Don't take my comment negatively.

yesmonk

Stealth

a year ago

Damn you are good 💯

Loner

Stealth

a year ago

This

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UpsetUnicorn

Stealth

a year ago

Seems investment heavy. Not rapidly scalable. Quick question. Why pay only a portion of down payment? Also, if the location isn't good, and the A walks away after paying penalty, you will be stuck with bad property. If it's in a less developed area, you won't be able to find people willing to buy or rent it. What will you do then?

Learningmind

Stealth

a year ago

on the location part the inhouse team will do the underwriting of the project and make sure if A walks away either we are able to sell it in open market or transfer it to some of our other customer. regarding investment agree, the idea is to tie up with bank/institutions and create some debt facility

WoozyDearest

MongoDB

a year ago

Check ZeroDown, they are a company in US who do the same(kinda)

Learningmind

Stealth

a year ago

Yes have looked at their model, thanks

GloomyCent67

MakemyTrip

a year ago

Bhai wahin se aaya hoga copied idea

detoxymoron

Stealth

a year ago

There's a reason that even after so many lending firms starting up, there's no good player taking a crack at home loans. It's a very high risk loan to underwrite and requires huge capital to sustain. No VC wants to touch this right now.

Sreekanth

Unnamed

a year ago

If he has to wait for 3 years paying rent, he can very well do thatwithout you. He can rent home on his own. Why would anyone likes to pay initial fees, agreements, legal formalities etc. Try pitching this idea to anyone and ask them to signup.

rangdebasanti

TCS

a year ago

Interesting Idea, if you can decrease the initial investment through p2p lending or ReIT kind of thing, this will scale.

Capische

Stealth

a year ago

Rental yield in India is 2-3% and interest rates are high. To procure a home, you would be blocking money and earning less interest. How will you make money? If you expect to make money on flipping the home, the buyer might not pay extra as you would have done a future contract with him. If not, what if property rates don’t go up. This works in markets where rental yield > interest rate

Whybother

Stealth

a year ago

Check out Alyf in India. They do something similar.

RiseUp123

Stealth

a year ago

Why can't he pay rent like he already does and build his credit score, amount for down payment etc. I would say you have the prob stmt but you are not solving the root cause in any way