On: Jay-Z and Will Smith Back Rent-to-Own Firm in $165M Round

[jl2718]

Here’s how it works:

customer pays an up-front down payment, then pays two years of rent, then either buys the house at full price, or the company keeps the up-front payment, kicks them out, and sells to the highest bidder.

Sorry; I’m calling this one for ‘likely scam’. The reason is the same reason ‘rent-to-own’ is always a scam: price has no memory. Those past rent payments have zero value against a competing bid. Neither does this up-front down-payment, which makes this extra scammy.

[lotsofpulp → jl2718]

That is not a normal use of the term “down payment”.

A deposit is a better word for it. If it can be used towards the purchase price, then maybe even earnest money.