Jamie Newton, left, and fiancé Dustin Carota pose for photograph at the home they rent in Oakland, Calif., on Wednesday, July 20, 2016. The couple is getting married on Saturday, July 23 and have been spent the last year searching for a home to purchase. (Anda Chu/Bay Area News Group)
ANDA CHU Jamie Newton, left, and fiancé Dustin Carota pose for photograph at the home they rent in Oakland, Calif., on Wednesday, July 20, 2016. The couple is getting married on Saturday, July 23 and have been spent the last year searching for a home to purchase. (Anda Chu/Bay Area News Group)

A San Francisco startup aims to connect investors with people who can't quite buy a house on their own, especially teachers.

Stanford graduates Alex Lofton and Jonathan Asmis founded Landed to help out all sorts of home buyers throughout California, but in the last five months they've focused on promoting their company among Bay Area teachers and school districts, reports Hannah Knowles of the Bay Area News Groups.

She describes Landed's solution:

Get investors to pay for half of a standard 20% down payment in exchange for some of the house's future appreciation -- or depreciation -- in value when eventually the house is sold or refinanced. In the case of the Bay Area, investors' share is 25%. For example, investors would collectively get $250,000 if a house that originally cost $1 million doubled in value by the time it changed hands. If homeowners aren't ready to sell or refinance within seven to 10 years, Landed helps them enter a similar agreement with a new set of investors who can pay back the old ones.

Landed plans to fund its first cohort of teachers in the fall. The firm cannot say yet how many will participate, but reports that investors have provided millions of dollars in seed money, according to Knowles.

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