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Equity Sharing introduction April 2016 RZ

Date post: 19-Feb-2017
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Home Equity Sharing Cash for a home Cash from a home Without debt
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Page 1: Equity Sharing introduction April 2016 RZ

Home Equity SharingCash for a home

Cash from a homeWithout debt

Page 2: Equity Sharing introduction April 2016 RZ

Equity Sharing divides ownership interests in a house between Homeowners & Investors

Page 3: Equity Sharing introduction April 2016 RZ

It solves these challenges:

Page 4: Equity Sharing introduction April 2016 RZ

Homebuyers Want to buy a house.Lack sufficient savings for a down payment. Or don’t want

to put it all into a house.

Page 5: Equity Sharing introduction April 2016 RZ

HomeownersWant to access home equity. Don’t want added debt.

Page 6: Equity Sharing introduction April 2016 RZ

InvestorsWant access to SFR investment.Don’t want to be landlords.

Page 7: Equity Sharing introduction April 2016 RZ

Investors buy an interest in a house

Page 8: Equity Sharing introduction April 2016 RZ

And hold it for appreciation.

Page 9: Equity Sharing introduction April 2016 RZ

Homeowners live in the house.They pay the mortgage, taxes, insurance.

There’s an alignment of interests.

Page 10: Equity Sharing introduction April 2016 RZ

Homebuyers

Investors

The transaction looks like this

Page 11: Equity Sharing introduction April 2016 RZ

And split the appreciation with Investors when you sell.

Page 12: Equity Sharing introduction April 2016 RZ

☐ 2 ☐ 3☐ 5 ☐ 7 ☐ 9+

Years

Or before

Page 13: Equity Sharing introduction April 2016 RZ

Investors find Homebuyers & Homeowners online on our platform

© 2016 EquityClub

Page 14: Equity Sharing introduction April 2016 RZ

Investment criteriaHome

☐ Town☐ Neighborhood☐ Size☐ Price☐ Mortgage amount☐ Percent ownership

Homeowner

☐ Income☐ Occupation☐ Education☐ Assets☐ Financial history☐ Use of funds

Page 15: Equity Sharing introduction April 2016 RZ

Terms are agreed:

equity share portion, investment length and amount

Page 16: Equity Sharing introduction April 2016 RZ

The house is purchased.Title is placed in a trust

Recorded

© 2016 EquityClub

And Overseen by a Trustee

Page 17: Equity Sharing introduction April 2016 RZ

(c) 2016 EquityClub

Homeowners live in the home.

It appreciates in value

Page 18: Equity Sharing introduction April 2016 RZ

(c) 2016 EquityClub

At the end of the term, the appreciated value is determined. It’s refinanced and the appreciation is dividedOr

Page 19: Equity Sharing introduction April 2016 RZ

(c) 2016 EquityClub

The house is sold, the Lender paid, and proceeds divided.


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