Home Equity, for no monthly payments nor interest!

When one wants to tap into the equity of their home, one usually has 3 main options, that just about anyone can use:

Option 1: HEL (Home Equity Loan),

Option 2: HELOC (Home Equity Line Of Credit),

Option 3: Cash Out ReFi (Refinance).

Each of these have pros and cons. HELOCs are generally considered the “easiest,” whereas the Cash Out Refi is considered the “hardest,” where the HELs fall in between. What you need to keep in mind, for all of these is that in most, if not all, circumstances, while you will have “cash” for your needs, you may now have two debts: your original mortgage (or new mortgage, for the ReFi), and your new loan/line of credit. 

Another alternative is Home Equity Sharing.

How it works is investors will do an appraisal on your home (or the home of your lead). Let's say $250k. They will, for no monthly payments nor interest, loan between 10 - 20%, for 10 - 30 years. Using 15%, you can have $37,500 for your home! When you refer someone, you can earn $375, using this example, when it closes. If someone you refer as an affiliate, has their transaction closes, you get a flat $50, for referring that affiliate. This is for owner occupied homes.

Currently, in California and Washington state, a similar offer is available for second/vacation homes or rentals. The main difference, is for the affiliates. You receive a flat fee of $100, and $25 for any affiliate you refer, when the transaction close.

"Conventional wisdom" suggests using the HES to pay off debts, pay for schooling, or to make improvements to your home.

"Rich Dad wisdom" says to invest that money. Maybe you have a 401k, IRA, etc? Combine the Home Equity Sharing money with a self-directing retirement account, and invest in real estate, or start/expand a business. You can even leverage the money with other investors, earning actively, or passively. Do some combination of the above.

Q: Is this a loan?

A: No. With no interest and no monthly payments, it is a mortgage debt alternative.

Q: How does this work?

A: You trade a share in the change of your property's future value (up or down), for a set amount of cash now.

Q: How much can I receive? 

A: Between 10 - 20%. The most invested in one home is $500,000.

Q: What are the basic qualification guides?

A: Good credit (some will go as low as 600), DTI (debt to income) ratio of less than 50%, and other factors, discussed between the investors and home owner.

Q: What types of properties are considered:

A: Single family homes, Condominiums, Townhomes. Second homes may be considered. Any other types may be considered on a case by case, as the firm decides. Manufactured/mobile homes are generally not considered.

HES is available only in the following:

• Arizona
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Illinois
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Missouri
• Nevada
• New Jersey
• New York
• North Carolina
• Ohio
• Oregon
• Pennsylvania
• Virginia
• Washington
• District of Columbia / Washington D.C.

It is highly suggested that you attend local MeetUp.com events, looking on sites like EventBrite for business networking, etc, and tell the people about it, collecting their name, address, and phone, in addition to your online marketing efforts. If you don't live in one of the above areas, you will focus on virtual promotional methods.

Sign up, and start earning.