Real Estate Investor owning a share of your Home?
We saw a article written by Franklin Roosevelt about real estate investors that can diversify in residential real estate in a way we never thought of being possible.
As a real estate investor, we often have multiple projects at one time, then a good deal comes up and we have to find another investor to supplement any leveraging deficiency to purchase a property. Upon selling, investor get paid back and then share the profits.
Now lets say a home buyer who doesn't have the 20% down payment could co-own their house with investors. Say a home owner was stuck in a high interest rate but doesn't have enough equity to refinance, they could sell shares in their home to real estate investor. This strategies could make your home a joint venture.
This new system of 'equity share financing' is a new system that has been proposed by PRIMARQ. This new system could achieve to two ends:
- allowing a person to become a homeowner of a real estate property that otherwise would have been difficult or impossible to attain and;
- provide a platform whereby real estate investors can gain exposure to the residential real estate asset class.
When the house is eventually sold and the bank is paid back, the home owner and the real estate investors share the profits. This could take the real estate market to a new level.
There is a down payment requirement in todays current real estate market need to get a home mortgage to purchase a residential property. People are finding a difficult time to save for a down payment. PRIMARQ could solve the down-payment problem and the investor could capitalize on the equity gains or sell their holding to another investor and maybe even hedge against a down market.
We agree there are risks for every real estate investor, especially in areas with continuing declining values where we see this could be a big problems with this new system. This is something that could be coming to our local market, sooner than later. What do you think?
Comments (3)Subscribe to CommentsComment