An equity
share is
like a joint venture
where an investor joins with a buyer, known
as an occupier, who will be
making monthly payments.
The
investor provides the
down payment funds or financing and the buyer moves
in, takes advantage
of home
ownership, and makes the monthly payments. At some
pre-determined
time down
the road, the investor and buyer will sell the house and split the
equity. This time
frame is anywhere from 2 or 3-10 years.
***Here is an article on the the topic of equity
sharing:
http://www.real-estate-online.com/articl41.htm
A
motivated seller, especially in a "down" or slow-moving market,
might agree to sell on an equity share agreement.
The seller would
become the investor and acquire the opportunity to share in any
future appreciation in the property.
***If you are a homeowner and know someone who is in need of a house,
then
PLEASE (if you would like) refer this person to Beneficial
Brokers, LLC.
This
is what could happen: you
can inform the prospective home buyer that he, she,
or they can move in, enjoy the reality of
home ownership, and take advantage of tax
benefits. Later on down the road, the equity would be shared
between the buyer and
investor (me). Also, the buyer can
refinance and buy out Beneficial Brokers for its
interest in the
property.
Here
is a WORD OF CAUTION:
A real estate
investor can take
advantage of real estate tax benefits.
An occupier can
take
advantage of real estate tax benefits. BUT
A lender can NOT take
advantage of real estate tax benefits.
A renter can NOT take
advantage of real estate tax benefits.
Finally,
when the time comes
to sell
the house, determine the fair market value from
an appraiser. From
the sale proceeds, Beneficial Brokers, LLC would
receive a return
of its investment, the occupier would receive any
**capital improvement money that
he, she, or they made on the property, and the equity would
be split.
**The addition of a permanent structural
improvement or the restoration of some aspect of a property
that either will enhance the property's overall value or increase its
useful life.
(Source:
http://www.investopedia.com/terms/c/capitalimprovement.asp)
Doug Iles
The Beneficial Broker
c/o Beneficial Brokers, LLC
http://www.creativehomesellerstrategies.com
http://www.creativehomesellerstrategies.com/HomeSellerindex.html
http://www.creativehomesellerstrategies.com/Commercialindex.html
http://www.creativehomesellerstrategies.com/HighestBidderSale.html#T
http://www.creativehomesellerstrategies.com/ResidentialIndex.html
26
Gibson Avenue
Mansfield, OH 44907-1316
Business email: askyourquestion@creativehomesellerstrategies.com
Home email: diles1@neo.rr.com
Other email: douglas.iles@huntington.com
TOLL-FREE business phone: 1-877-972-3847 or
1-877-97ADVISE
Choose Option 1 to leave a message for Doug Iles
Choose Option 2 to request a 24 x 7 fax-on-demand company brochure
Choose Option 3 to request a 24 x 7 fax-on-demand owner financing
brochure
Choose Option 4 to request a 24 x 7 fax-on-demand partial purchase
brochure
Choose Option 5 to request a 24 x 7 fax-on-demand simultaneous close
brochure
Choose Option 100 to listen to a foreclosure hotline recording
Choose Option 200 to learn about the Instant Equity Exchange program
TOLL-FREE business fax: 1-877-972-3847
Home phone @ 419-775-5349
Cell phone @ 419-545-4446
to the top