Introducing 'YUPCAPs' Young Urban Professionals; Can't Afford Property - The New Face of First Time Home Buyers

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YUPCAPs are Young Urban Professionals; Can't Afford Property are the new face of first time home buyers. They are turning to equity sharing - co-ownership of a property with an investor who pays most of the down payment and owns 50% of the property - to buy homes.

The struggle to buy a first home is nothing new. Hefty down-payments, loan fees, and moving costs have always stopped first time buyers dead in their tracks. But now we've got 30 somethings stuck in the rental loop. With skyrocketing prices, the profile of struggling buyer is changing from students and young newlyweds, to YUPCAPs - "Young-Urban-Professionals-Can't-Afford-Property." These are older professionals in their 30s often with college and graduate degrees who can't afford to take that first step into the American Dream.

YUPCAPs appeared in the last decade when real estate prices increased in the double digits every year and the sub-prime market collapsed. These young professionals have earned university degrees and landed good paying jobs. Yet despite their success, they are unable to afford a home of their own. They are in danger of becoming "renters for life".

"We see people coming to our site everyday who have been working for over a decade and still can't afford what it takes to get into a home", says Dr. Jeff Langholz, CEO of Home Equity Share ( " I was a YUPCAP"; laughs Langholz "I am a college professor with a Ph.D. who could only afford what seemed to be the last affordable house in the state of California; a rusty old 'double wide' trailer. I started Home Equity Share to create a solution for YUPCAPs like me - to make real estate equity sharing available to more people. We partner hard working people who want to buy houses with real estate investors."

Real estate equity sharing is an innovative strategy - one that partners home buyer-occupiers who need a down payment with real estate investors who want to reduce risk, survive the real estate market lull, and avoid negative cash flow. 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.

About Home Equity Share
Officially launched in March 2007, Home Equity Share ( is the only national source for finding real estate co-ownership partners, equity sharing market trends and information. The website also helps customers locate qualified service providers such as real estate agents, mortgage lenders, and attorneys.

Andrea Fuller, Director of Communications, Home Equity Share


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Andrea Fuller
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