equity sharing introduction april 2016 rz
TRANSCRIPT
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Home Equity SharingCash for a home
Cash from a homeWithout debt
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Equity Sharing divides ownership interests in a house between Homeowners & Investors
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It solves these challenges:
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Homebuyers Want to buy a house.Lack sufficient savings for a down payment. Or don’t want
to put it all into a house.
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HomeownersWant to access home equity. Don’t want added debt.
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InvestorsWant access to SFR investment.Don’t want to be landlords.
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Investors buy an interest in a house
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And hold it for appreciation.
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Homeowners live in the house.They pay the mortgage, taxes, insurance.
There’s an alignment of interests.
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Homebuyers
Investors
The transaction looks like this
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And split the appreciation with Investors when you sell.
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☐ 2 ☐ 3☐ 5 ☐ 7 ☐ 9+
Years
Or before
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Investors find Homebuyers & Homeowners online on our platform
© 2016 EquityClub
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Investment criteriaHome
☐ Town☐ Neighborhood☐ Size☐ Price☐ Mortgage amount☐ Percent ownership
Homeowner
☐ Income☐ Occupation☐ Education☐ Assets☐ Financial history☐ Use of funds
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Terms are agreed:
equity share portion, investment length and amount
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The house is purchased.Title is placed in a trust
Recorded
© 2016 EquityClub
And Overseen by a Trustee
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(c) 2016 EquityClub
Homeowners live in the home.
It appreciates in value
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(c) 2016 EquityClub
At the end of the term, the appreciated value is determined. It’s refinanced and the appreciation is dividedOr
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(c) 2016 EquityClub
The house is sold, the Lender paid, and proceeds divided.