A One-Stop-App That Helps Renters Become Homeowners

The primary-time homebuyer app, Gravy was born to be a reward platform for renters. The reward? Homeownership.

Co-founder and CEO Jeff Dinter has spent a decade constructing software program to assist renters accomplish their targets. He was initially impressed by a leaking faucet and an unresponsive landlord in his personal condominium. Right now, tens of millions of renters use the options he’s helped create to higher talk with their property managers and pay hire on-line.

By means of this expertise, by listening to renters, understanding their hopes, and studying about their issues, a sample emerged: practically each renter desires to cease renting sometime. It seems, homeownership is an nearly common objective for the 100 million renters in America.

It was at that very same time that Jeff and his spouse started trying to purchase their first dwelling within the suburbs of St. Louis for his or her rising household. Mortgage lenders and actual property brokers had been keen for his or her enterprise, however solely as soon as that they had efficiently saved a down fee and constructed their credit score.

Sadly, no instruments existed to assist these aspiring householders obtain this vital, however daunting, ambition. They knew they needed to personal their dwelling, however not the place to begin. This drawback was not distinctive to Jeff and his household. Many renters have low-to-no financial savings, restricted credit score histories, and having by no means bought a house earlier than, no expertise to attract upon.

Housing is usually the most important expense in a renter’s funds, and but, the charges for paying hire with a bank card are prohibitive, so shoppers don’t earn rewards on hire like they do on different purchases. Gravy permits their members to earn cash-back on hire totally free, which they’ll apply towards a future dwelling buy.

As well as, the Gravy cellular app contains an FDIC-insured high-yield down fee account, a mortgage credit score rating hub, and homebuyer coaches. Their intention is to be a one-stop-shop for aspiring householders, serving to them lower your expenses and purchase their first home with confidence.

As a part of my analysis on purpose-driven enterprise, I not too long ago talked to Jeff about why it was vital for Gravy to be a public profit company from day one, and the way they’re disrupting the standard actual property mannequin by giving tens of millions of renters a spot to go to organize for homeownership and construct monetary freedom.

Christopher Marquis: Are you able to describe what Gravy is and the way do you give on a regular basis people an opportunity of shopping for a house? The place did the concept come from?

Jeff Dinter: Gravy is the super-app for first-time homebuyers. We assist renters lower your expenses and purchase their first dwelling sooner.

The Gravy app is designed to be each step one towards homeownership and every step thereafter. Save for a down fee, construct your mortgage credit score rating, be taught in regards to the course of, and finally discover and finance your new home––multi function place. Plus, members can save hundreds on their dwelling buy with Gravy Rewards, a first-of-its-kind homebuyer rewards program.

Earlier than Gravy, I labored with my co-founders, Will Dunn and Jimmy Lien, at a number one property administration software program firm referred to as Buildium. We constructed software program that tens of millions of renters use to handle their residences, and it was there that we witnessed firsthand how few instruments exist to assist renters navigate the trail to homeownership. Most renters have restricted financial savings and credit score historical past, and have by no means purchased a home earlier than, however the conventional homebuying {industry} is catered to mortgage-ready consumers that may purchase now.

We imagine this wants to vary with a purpose to make homeownership extra achievable for aspiring householders. We launched Gravy to bridge this hole between renting and homebuying.

Marquis: Shopping for a house is usually a complicated and complex course of. Are you able to describe how Gravy makes it much less so?

Dinter: Homeownership is a standard objective that just about the entire 100M renters within the US share, however the overwhelming majority are usually not prepared to purchase in the present day and there’s no central place to go to get there.

From opening a free high-yield financial savings account for a downpayment to connecting with Gravy’s group of homebuying specialists, we designed Gravy to work for 100% of renters, which implies we’ll meet you wherever you’re within the course of and provide help to take the following steps towards shopping for a home. No landlord or property administration sign-up crucial.

When a Gravy member is able to purchase their first dwelling, they’ll use the Gravy app to seek out brokers and lenders in all 50 states, from a number of the most trusted names in actual property, to redeem their Gravy Rewards and finally get the keys to their new home.

Marquis: What’s your concept of change? Why is homeownership vital?

Dinter: Proudly owning a house is likely one of the major drivers of wealth creation for People. The median web value of a home-owner is 40 occasions larger than that of a renter. However, entry isn’t equal, particularly for traditionally marginalized teams like Black and LGBTQIA+ people. And with rising dwelling costs, rents, and mortgage charges, it has by no means been more durable for renters to purchase their first home.

Rising entry to everybody will have to be an industry-wide effort, however that is the explanation we began Gravy, to stage the enjoying subject for all aspiring householders. No matter the place you’re in your homebuying journey, Gravy’s singular objective is to assist renters put together with confidence and to get the perfect deal once they’re prepared to purchase.

Marquis: How does Gravy differ from different startups which have an identical mission?

Dinter: Right now, there are a minimum of a dozen firms, and doubtless many extra, with practically similar mission statements: to make homeownership extra accessible. Every helps renters with both financial savings, schooling, credit score, or financing, however what makes Gravy totally different is that we mix all of those in a single app.

We additionally take an extended view of the run-up to homeownership. We assist people put together to purchase not only for months, however in lots of instances, years. Gravy Rewards, which create motivation and momentum, is the important thing to our success with that strategy. A typical Gravy member will earn hundreds of {dollars} in Gravy Rewards whereas they save for a house, which they get to money in with our associate lenders and brokers once they purchase a home.

Marquis: How does Gravy work in in the present day’s aggressive market? Do members nonetheless have to fret about mortgage charges and residential costs?

Dinter: It has by no means been more durable for first-time homebuyers to succeed than it’s proper now. It’s occasions like these when Gravy is usually a actual distinction maker – the extra you save, the higher your credit score is, having an incredible lender and actual property agent in your nook, are all issues Gravy brings to bear to assist our members win in in the present day’s market.

Marquis: What does Gravy’s public profit company standing imply for the corporate and in addition the larger actual property {industry}?

Dinter: To place it merely: function over revenue. We need to construct a permanent firm that cares about rather more than simply the worth of a stockholder’s fairness. Our mission is to make homeownership extra accessible for all. We measure our success, at the beginning, when it comes to the variety of first-time homebuyers we assist.

Historically, actual property has revolved nearly completely across the property or the acquisition, not the individual. We predict there’s a higher approach, which is why we take a human-centric strategy in all that we do.

Marquis: What’s your long-term imaginative and prescient for Gravy?

Dinter: Right now, we’re laser centered on being the very best approach to purchase your first dwelling, however we’re simply scratching the floor.

Longer-term? The reality is that homeownership is superb for thus many causes, however it’s no picnic. First-time homebuyers grow to be first-time dwellinghouse owners, which brings an entire host of recent challenges, and we intend to be proper alongside our members to assist remedy them as they graduate from starter properties to dream properties and handle every thing in between.