Real Estate Agent with Keller Williams Realty

Your kids (or family members) need a little help with the down payment to get them into the world of home-ownership. You have a lot of equity just sitting in your house “Lazy Money” and need a place to invest it that will offer security and good potential gains. The stock market is not appealing to you. What do you do?...... Try an equity share!

Buy a House for your KidsThis a win-win situation that is very satisfying to everyone. Your kids are responsible and need a break to get started. They’ve been throwing money away on rent for years. By becoming a home owner they get stability, tax benefits, and, quite often, lower payments than they were paying in rent.

INVEST In Your Kids…...How Equity-Shares WorkMore...

By structuring your equity-share properly, you go on title and have security in your investment. You both share in the appreciation. You do not have to be a landlord. They make all the payments for the mortgage, insurance, property taxes and maintenance of the property, just like a normal home-owner. They can improve the property as much as they want because they OWN the property.

Most equity-shares are structured for 2 or 3 years. After this pre-set time limit your kids will sell or refinance the property and cash you out. If you sell the property, then you select a Real Estate Agent, sell it and split the proceeds after you receive your original investment back. Your kids would also be repaid for any cash they put out for improvements or any reduction in the principal (the loan balance).

You are not charging any interest for the money you put in because you will participate in any appreciation on the property. Additionally, they are not charging for any of the labor that they put into fixing up the property because they will also get a portion of any appreciation.

If they are buying you out, then you get an appraisal (or two, if desired) and decide on a fair market value for the property and refinance it. It’s pretty simple.


An equity share can truly change a persons life by helping them get their start in the world. The risk for both parties is usually pretty low and the rewards can be very good—both financially and spiritually.

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