First-time home buyers, relocating or trading up and experienced real estate investors are using our service to buy real estate as a team.
San Francisco, CA (PRWEB) April 10, 2007
Home sales may be falling but prices aren't. It's getting ever harder for ordinary people to buy a home. With the collapse of the subprime lending market, even risky mortgages are hard to come by. A new online service called Home Equity Share (http://www.HomeEquityShare.com) has a solution: It matches people who can share the risks and rewards of ownership as partners.
"We provide what is like an online 'dating service' for investors and home buyer-occupiers so it's easier to find someone to buy with," says Dr. Jeff Langholz, CEO of Home Equity Share. "We provide analytical tools and model legal documents that give these strangers the security they need to buy real estate together. This makes the transaction cheap, safe and easy."
The Website offers a streamlined matching process based on geographic factors and other screening criteria. Customers communicate anonymously through the Website's secure system, evaluating potential partners. Once they find a good fit, partners share their direct contact info with one another, and go buy real estate together.
Co-ownership, or "equity sharing," has experienced renewed interest as a wave of foreclosures on overextended borrowers has bankrupt some of the biggest lenders to first-time home buyers.
"Lending institutions are scrutinizing new loans much more closely. Equity sharing helps both the buyer-occupiers and the investors who provide the down payment avoid becoming over-extended," says Marilyn Sullivan, a California attorney and author of The New Home Buying Strategy, Solve Your Cash Crunch With Team Buying Power.
"Technology now makes it much easier to find a suitable partner," Langholz said. "First-time home buyers, relocating or trading up and experienced real estate investors are using our service to buy real estate as a team."
About Equity Sharing
Once partners find each other and purchase a property, equity sharing partnerships usually end after three to seven years, or when the property has appreciated in value to a target level partners select. When the time is right, the partners sell the property and split the profits. The real estate investor walks away with the original down payment, plus about 50% of the appreciation, often exchanging into another property tax free. The home occupiers, meanwhile, typically use their share of the profits to make a down payment on a house that they will own 100% instead of only 50%. An occupying owner who wants to remain in the house can refinance the loan and "buy out" the investor partner's ownership share. Home Equity Share even provides referrals to real estate agents who can assist in such purchases.
About Home Equity Share
Officially launched in March 2007, Home Equity Share (http://www.HomeEquityShare.com) is the only national source for finding real estate co-ownership partners, as well as equity sharing market trends and information, and qualified service providers such as real estate agents, mortgage lenders, and attorneys.
Andrea Fuller, Director of Communications, Home Equity Share
afuller @ homeequityshare.com