If ever there was a headline that caught our attention, this was it, “A new way to tap equity without going into debt”. On Friday, Carolyn Said of the SF Chronicle did an article about a new company, Rex & Co. that “bills itself as the first company offering a way to make home equity liquid without incurring debt.” Good God that sounds fantastic! Where do we sign up? And how does it work?
“[Rex & Co.] essentially buys a share of a home’s future appreciation. Rex gives homeowners a large up-front cash payment — up to 15 percent of a home’s value, topping out at $300,000 — in exchange for a share of the home’s future change in value — up to 50 percent of its appreciation or depreciation.
No payments, no interest
When the home is sold, the homeowner returns the original investment to Rex plus the agreed-upon share of appreciation. The homeowner does not pay interest and does not make any payments until the sale.”
One of our contributors got super excited about this one thinking he could use it to stop some of the bleeding on one of his rentals in Arizona he purchased last year at the height of the market, but it is not available to use on rental property. Damn! Guess he’ll have to figure something else out, but selling is not an option…always remembering real estate is a long term investment, and letting you know that even though we report on the market, we’re actually in it too….making mistakes and victories just like all of you.
Okay…back to the topic at hand. We invite you to read the article, and let us know what you think.
–A new way to tap equity without going into debt [san francisco chronicle]