Our program works because the benefits are fairly distributed and the incentives are aligned. We have carefully designed a homeownership program that puts homebuyers and investors on the same team. And recently, we launched a new agent commission model that aligns agent incentives as well.

Homebuyer Benefits & Incentives

Designing a program that is good for homebuyers was a priority for us. That's why our program enables homebuyers to reap all the benefits of homeownership. Our homebuyers (we call them "Ownis") have a true ownership stake in their home, which allows them to benefit from home price appreciation and begin building wealth on day one. This differs from traditional rent-to-own models, which often operate more like a savings mechanism than a shared equity agreement. Our Ownis also have payment certainty throughout the duration of the 5-year program and the ability to renovate and remodel their own home.

Our homeownership program is also more affordable than a traditional mortgage.  Our Ownis save money on both their down payment and monthly payment. And they don't have to worry about repairs, insurance, or property taxes - all of which we handle. Our Ownis also limit their downside risk, as it is impossible for them to be ‘underwater’ on their homes (i.e. negative equity).

The way our program is structured not only benefits homebuyers, it also aligns their interests with investor interests. The co-ownership model incentivizes Ownis to treat their home as if it were their own (because it is!). As Warren Buffet says, "Who ever washes a rental car?" 

This ownership mindset can thus lead to lower repair and maintenance costs. We've seen this come to fruition as our portfolio has had 60% lower repair and maintenance costs compared to similar single family funds. There is also reason to believe that the co-ownership model could lead to higher home price appreciation as well, which would benefit both homeowners and investors alike. 

Investor Benefits & Incentives

Investors also benefit from our unique program structure - they get an attractive real estate investment with long-term 5-year leases. And because we don't purchase any homes until an Owni picks a property and is ready to move in, our homes have zero upfront vacancy; thus, our properties are cash-flowing from day 1. These unique program features increase return to investors and also benefit Ownis.

Furthermore, investors in our fund receive rental income that is the top quartile of rental yields. And as previously mentioned, the ‘ownership mindset’ of our Ownis leads to lower maintenance and repair costs and potentially higher home price appreciation. Investors also see an efficient exit with no broker fee on the sale to the Owni. 

Together, homebuyers and investors reap the collective benefits of building equity, creating stability, and investing in the health of local communities for years to come. 

Our New Agent Commission Model

In light of the recent NAR settlement, our agent commission model offers a new way to think about rewarding agents for their hard work and the value they create for buyers. Central to this new model is aligned incentives. 

In our new model, agents are incentivized to negotiate a better deal for buyers (and consequently a better deal for investors). There are two key components to this new "Two Plus Ten" model we are rolling out: 

Base commission (the “Two plus”): Ownify will pay agents the higher of a) the commission offered by the selling agent or b) 2.00% of the list price

Buyer benefit commission (the “Ten”): In addition to the base commission, Ownify will pay agents 10% of the buyer benefit negotiated by the agent on behalf of the buyer. Buyer benefit is the difference between list price and the initial executed purchase price including negotiated price reductions, seller-paid credits, or seller concessions. Yes - for the first time, agents can earn more commission by reducing the price their buyer pays!

This new model ensures that agents are working on behalf of the homebuyer (and in our case investors) to get the best possible deal on any given property, thereby maximizing potential home price appreciation and returns for buyers and investors alike.

You can read more about the details of our agent commission plan here.

Interested to experience the benefits of aligned incentives firsthand? You can get started investing here by submitting your information and scheduling a meeting with a member of our team.