ZeroDown is a sale-leaseback and rent-to-own service that helps buyers rent a home they want to eventually buy.
A buyer starts by applying for ZeroDown with a specific property. If ZeroDown approves the property and buyer, ZeroDown will purchase the home with an all-cash offer. The buyer then rents from ZeroDown and can purchase the home at a set purchase price.
According to most sources, ZeroDown charges a $10,000 service fee alongside a monthly rent that is based on the price of the home and market conditions. ZeroDown does charge an appreciating fee on the home price based on the amount of time that has passed since the company purchased the home.
ZeroDown primarily generates revenue by splitting real estate commissions with agents that help with transactions on subject homes. ZeroDown also charges service fees to support transaction costs, an appreciation fee related to the price of the home and the time from purchase to sale, and monthly rent from buyers who have not yet purchased the home from ZeroDown. ZeroDown also has a partner brokerage, ZERO, that supports buyers and sellers which may generate additional revenue opportunities from traditional brokerage services.
ZeroDown is privately held.