Swiss American Partners™ makes eight-figure investment in Titan Real Property Platform
Oklahoma City • March 2, 2021
Private equity and venture capital firm Swiss American Partners™ said today it will invest in Titan SAP I, LLC; a special purpose acquisition vehicle of Titan Real Property, LLC (the parent company of Lease2OwnAmerica™). This stake joins previous Titan stakeholders betting on a market-disrupting lease-to-own Home Ownership model with a growing and scalable consumer appetite.
The investment gives the Oklahoma City-headquartered firm an anticipated $140 million in property acquisition ‘purchase power’ and comes with a plan to add more than 800 properties to Titan’s real estate portfolio currently operating in Oklahoma, Tennessee and Kentucky.
Swiss American Partners’ investment will ultimately convert into an ownership stake in Titan Real Property, LLC (Titan) after certain financial return hurdles are reached and geographical footprint is expanded to include Kansas and Missouri.
This is continued validation that Lease2OwnAmerica™ (L2OA) is a pioneer in the industry and has the IT and data analytics, seasoned team, customer advocacy and an improved lease-to-own model delivering an ‘alternative path for Home Ownership’ to target audiences.
“I am proud of this team’s performance and look forward to their 1,000- property milestone,” stated Joe Tippens, Managing Partner of Swiss American Partners and Managing Member of Titan SAP I, LLC. “This investment, along with permanent financing options and an expandable acquisition line, puts the organization in a great position to reach new audiences and expand the business model at a securitizable scale.”
Titan Real Property, LLC profits arrive from three revenue streams: the spread between purchase price and program price, monthly lease payments and a yield spread premium. Not being FDIC regulated, Titan uses its popular brand Lease2OwnAmerica™ to creatively market to various audiences via low-cost digital platforms while also engaging and rewarding real estate professionals for lead referrals. “This combination,” adds Tippens, “positions the company to expand into statute-friendly states and provinces across North America as well as position the company for cost efficient securitization of portfolios.”
“Our team has come a long way in the last 35 months of operations,” stated Titan/L2OA’s CEO, Craig Clemons. “In Q4 of 2019, we adjusted our model by overlaying lease-to-own offerings next to every MLS listing in target markets. This allows online shoppers to immediately explore the lease-to-own value proposition while our organization simultaneously underwrites Applicants and pursues purchase of the specifically targeted real estate asset with the Tenant/Buyer in mind.”
Lease2OwnAmerica™ (L2OA), a wholly-owned entity of Titan Real Property, is a financial technology company with a mission to ‘bridge’ home buyers into their dream homes via easy, compliant and transparent methodology.
Leveraging a Lease Agreement, Option Agreement and integrated online Applicant/Tenant portal, L2OA approves 95% of completed applications while handling all taxes, insurance and maintenance associated with their proprietary lease-to-own program. Learn more at Lease2ownAmerica.com
About Swiss American Partners™
Swiss American Partners® (SAP) is a private equity and venture capital investment firm with offices in Switzerland and the US. The firm pursues investment opportunities in Western Europe and North America.