What is the cost of your service?
Using our matching service and working with an Equity Share Advisor is free. Completing the transaction with us we charge a flat fee (comparable to the cost of having another attorney create an Equity Share Agreement). The cost of our service is paid by the Home Buyer.

What are the standard provisions of the Equity Sharing Agreement?
Length of agreement, occupancy requirements, and payments to be made by the Home Buyer, the procedure for making improvements, how the proceeds are shared at the end, and what is done in the event of default.

How is the ownership split between me and the Investor?
Typically Investors and Home Buyers split the ownership 50/50. But every transaction can be negotiated depending on the specific circumstances.

What contributions will I get back at the end?
Per the Equity Share Agreement you and your Investor will decide on what property improvements you, as the Home Buyer, can make. Also, the Investor may approve additional improvement requests along the way. These property improvement expenses are reimbursed to the Home Buyer at the end of the agreement.

How does the IRS look at the Equity Sharing Agreement?
The IRS permits Equity Sharing per the Internal Revenue Code §280A which allows the Home Buyer to claim his interest in the property as his principle residence while the Investor claims as his investment property.

Are me and the Investor technically “partners”?
No. Technically you and your Investor are not partners. You are co-owning property as “Tenants In Common”. We only use the word partner in the general sense of the word.

Can I choose to rent out the property?
Yes, as long as you and the Investor agree together and determine the necessary requirements.

Who pays the selling costs or refinance costs?
The Home Buyer.

Do we need a legal agreement?
Yes. Specifically a detailed Equity Sharing Agreement prepared and reviewed by an Attorney specializing in this type of transaction. As part of our service we provide you with the agreement and customize it for your specific needs. We also have a specialized Equity Share Agreement review your agreement.

What are the risks associated with this type of transaction?
As with any real estate purchase your property value can go down. Every real estate transaction can be complicated and unique so we recommend pursuing as much advice and counsel as you can.

When does the Equity Share Agreement end?
Before entering into the agreement you and your Investor agree on an end date. If you want to end the agreement earlier you can with the agreement of your Home Buyer. You may also choose to extend the agreement past the end date.

How is the property valued?
The property is valued by a professionally licensed appraiser.

Can I use my own Real Estate Agent?
Yes. No problem.