Don't recall this being discussed here. There are companies that buy a share of the change in value of your house. "We pay you a percent of your home's current value. You make no payment to us until you sell. If the value of your home increases from its current value, when you sell, we will share in a portion of the increase and make a profit. If the value decreases, we incur a loss. It's that simple."
The company takes an outsize share of the increase in value. The promo gives an example in which they pay the homeowner 10% of the value of the home, but they get 40% of any increase in the home's value. They also will take 40% of a loss, but only up to the value of the amount they had initially paid the homeowner.
It's like a stock option for real estate. Of course these companies look to purchase only in areas of appreciating property values. It's an interesting idea, but on average homeowners are not the ones gaining in such an arrangement.
The company takes an outsize share of the increase in value. The promo gives an example in which they pay the homeowner 10% of the value of the home, but they get 40% of any increase in the home's value. They also will take 40% of a loss, but only up to the value of the amount they had initially paid the homeowner.
It's like a stock option for real estate. Of course these companies look to purchase only in areas of appreciating property values. It's an interesting idea, but on average homeowners are not the ones gaining in such an arrangement.
