$250M Renter Wealth Creation Fund Closes First $47M Round, Taps Into Underused Asset Margins For New Model To “Turn Rent Into Wealth”
$250M Renter Wealth Creation Fund Closes First $47M Round, Taps Into Underused Asset Margins For New Model To “Turn Rent Into Wealth”
Abstract
Getty Renting can now be a way to accumulate wealth. The path to generational wealth is throughrentership? That's the premise behind the newly-launched Renter Wealth Creation Fund by Enterprise Community Partners in collaboration with Stake, the startup which provides banking services and cash back rewards for on-time rent payments. The Renter Wealth Creation Fund, which closed $47 million in investment earlier this month, stipulates that when a building is sold or refinanced, which typically happens around the eight to 10-year mark, 80% of the profits will be shared with the residents as long as they have lived there for four years. Any profits above these thresholds will also be shared between investors and renters. Called Stake1, renters now have the possibility of receiving access to payroll deposits two days early and a cash back Visa debit card with 5% cash back on the first 90 days and 1% cash back thereafter. Stake will now also provide optional reporting of on-time rent payments to credit bureaus through their Credit Builder feature, allowing renters to build their credit score for what is typically their largest monthly expense. The fund will also help cover the costs of renter services, which can be every from financial literacy education to health and fitness workshops.
