When we are in debt, turning to a bank seems like one of the most logical moves, in order to cover expenses and stay afloat. But for those who happen to be in France, own a property worth more than what they owe, and cannot necessarily obtain funding from a bank, StayHome hopes to come to the rescue.
StayHome, which launched in 2013 and then unveiled its web platform in 2015, hope to attract people with a platform that allows property-owners to offer their holding up to investors online (at a 20-30% discount). The system works by allowing the owner to post it and, should they reach their target financial goal, they will then become the tenant and begin to pay rent at a small percentage of the amount invested. Then, after several years, the new tenant can either buy his or her home back at the original price or find another buyer and attempt to receive a fair price for it. Profiles for available properties indicate the amount that the owner ultimately needs, the value of the property, the minimum to be invested, the amount that the owner still needs, and the terms of the agreement (length and rate).
StayHome is not exactly open to just anyone, however, as those who invest in a property must put in a minimum of $10,000. And invest people have, with a co-founder of the startup tell me that 18 million Euro has already been invested through the platform. Like many online marketplaces, StayHome generates revenue through commissions, as well as charging rental-management fees.
To date, the startup tells me that they have received 400 requests. Like many startups, StayHome is currently focused on getting established in their home market, but plans to then begin to spread their wings internationally. Helping them in this process is 750K Euro, which they have taken in through crowdfunding and Phitrust Impact Investors.