The startup Remedium wants to profit from deaths and family disputes – and thus also offer a solution to a problem that has previously been difficult to solve. The founders think this is a safe bet.
Robert Lindenstreich and Florian Kania founded the startup Remedium. Their approach: simply buy out heirs from partial real estate inheritances. Getty Images/ Oliver Hasselluhn, Sasin Paraksa; Collage: Zoe-Melody Janser
A family member dies. What in most cases means an exceptional situation for relatives, often brings with it a whole tail of complications. One of them: inheritance. According to a study by the Allensbach Institute for Demoscopy (IfD Allensbach), almost one in five inheritance cases in Germany ends in a dispute. There are many reasons for that. A classic case is that the deceased’s inheritance was not clearly regulated. But even if there is a will, that doesn’t mean that conflicts don’t exist. Disputes arise, for example, when several relatives inherit a property together but cannot agree on what should happen to it.
“For example, brother and sister inherit. The brother says he wants to sell the house, the sister says she would rather keep the house,” says Robert Lindenstreich. “These are both legitimate interests, of course, but they are difficult to reconcile.” He experienced this in his own family, explains the founder in an interview with Gründerszene. He has obviously prepared well for the appointment: as if at the push of a button, the founder starts his presentation and talks about the problem and the solution that he and his co-founder have developed.
Just buy the inheritance
Lindenstreich founded the company Remedium together with co-founder Florian Kania. It wants to offer a compromise solution to this very dilemma – when communities of heirs absolutely do not want to come to an agreement. Remedium simply wants to buy out heirs and then rent out the property. “From a legal perspective, this works through a so-called divisional building dispute,” says Lindenstreich. The total property is essentially converted into shares and divided among the heirs. The idea: Remedium buys the shares of those heirs who want to sell and thus becomes co-owner. The company then organizes the management – i.e. rental – of the property.
Remaining heirs would receive a share of the income according to their shares. “We also design necessary renovations or renovation measures and ensure that they are implemented accordingly,” says Lindenstreich in an interview with Gründerszene.
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It’s noticeably not the first time that the founders have presented their idea to the press. During the interview, Lindenstreich can hardly be dissuaded from his presentation with the carefully chosen vocabulary. In fact, the fintech has already received a lot of positive reception in the short time since it was founded in the summer of 2023 – the “Handelsblatt” and “Wirtschaftswoche”, among others, reported. And the founders emphasize: Other well-known newspapers are also currently working on articles about Remedium. Active press work is already working. The two former investment bankers are confident: “We have a very good solution to a real problem.”
Making money out of family conflicts
According to the Allensbach study, in which those affected by inheritance conflicts were surveyed, around one in two (52 percent) cited the creation of a community of heirs as the reason for the conflict. At the same time, according to an estimate by the German Institute for Economic Research (DIW), up to 400 billion euros are inherited every year. And that only in Germany. Real estate accounts for around half of this amount. In this case, such a community of heirs often arises.
For Remedium, this is kind of a sweet spot. The company wants to generate profits primarily by receiving discounts on the heirs’ shares in the real estate. Remedium pays the heirs 15 to 25 percent less than the value. In addition, the company’s “vision” is to turn the shares into a new asset class in which investors can then invest. “The returns on the co-ownership shares of the houses are very strong and resilient, but institutional investors (for example investment and corporations, editor’s note) not yet accessible,” says co-founder Kania. Remedium wants to make that possible. As soon as the company Having “built up a large portfolio of high-yield ownership shares,” I want to make it available to these investors.
All of this is made possible by the special situation in which the heirs find themselves – a “stressful situation” that sometimes causes those affected “sleepless nights,” as Lindenstreich himself says. Is the concept of Remedium even ethically justifiable?
The founders and WHU graduates don’t seem to have asked themselves this question yet – because they react irritably. “We are an ethical company,” says Lindenstreich. So far the feedback on their offer has been consistently positive. “People come to us and say: Finally there is someone who can help us.” Because there are few alternatives: this includes the partition auction. Part of the property is foreclosed on – according to the Remedium founders, this is often significantly lower than its value. Remedium is clearly the lesser evil in this comparison. Even if the founders certainly wouldn’t put it that way. They see their startup as a win-win situation: after all, everyone gets what they want.
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Remedium also ensures that properties do not fall into disrepair during decades-long court disputes and at the same time helps to resolve conflicts. “It’s social, it’s environmentally friendly and it’s also an expression of good governance. We are a very clear ESG case,” says Lindenstreich, adding: “Consumer advocates also find this appropriate.” The Hamburg consumer advice center has therefore already approached the startup. In an article from T-Online About the startup, the head of the real estate financing, construction and purchase contract department at the Hamburg consumer advice center also explains that Remedium’s offer is definitely worth considering. “Whether it really works remains to be seen.”
The company is still in its early stages
The original founders have so far only tested the Remedium concept with private share purchases. This means: The company Remedium has not yet actually concluded a single contract. There is still a lot to do internally: It is not yet clear what distribution of roles the founding team will aim for in the future. There are no employees yet either. The two founders only mentioned all of this after repeated questions from the start-up scene. For them it’s a minor matter. They seem to be sure that their concept will work. “We haven’t done a bit of marketing yet and we already have a large number of inquiries, both from co-heirs, sales and financing partners who are willing to sell and who are willing to hold on,” says Lindenstreich.
The proptech industry isn’t exactly having an easy time of it at the moment. Above all, the high interest rates on real estate loans make life difficult for buyers and therefore also real estate companies. Remedium also wants to finance the share purchases through loans. These should be secured by equity capital from investors. The startup is currently looking for a seven-figure amount. About a third of these have already been guaranteed.
Lindenstreich explains that in the end it simply comes down to choosing the right objects. That’s why the startup isn’t planning to grow explosively overnight. Lindenstreich is certain: “There is a serious path to profitability.” In addition, things have gone very well so far. “We got here without a single cent of investor money,” he says, as if his company had been around for years instead of months. One thing is certain: things are just getting started for the two entrepreneurs.
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