Mark K
Elite Member
- Joined
- Jan 27, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Indiana
Forget reverse mortgage, refi, or HELOC....
www.marketwatch.com
"Here’s how it works for the homeowner:
Hometap pays up front for a percentage of the future value of the home. Homeowners can settle the investment at any time over the course of the 10-year term, when they sell or refinance the house, with no pre-payment penalties."
"Usually transactions are made for 10% to 15% of a home’s value, or it could be a smaller piece such as 5%.
At the end of the term — or whenever the homeowner decides to settle the investment — the homeowner pays Hometap an agreed upon percentage of the final home value.
If the home goes down in value, Hometap takes a smaller percentage of what is now a lower value when the home is sold or when the investment is settled. But the company is building a portfolio of homes in various markets to reduce this risk to its investors in the fund."
I wonder if they'll need appraisals?
This startup is raising money to invest in home equity. Here's how it works.
Bain Capital and insurer Delaware Life commit $245 million to buy small equity stakes in private homes as a new asset class for long-term returns.
www.marketwatch.com
"Here’s how it works for the homeowner:
Hometap pays up front for a percentage of the future value of the home. Homeowners can settle the investment at any time over the course of the 10-year term, when they sell or refinance the house, with no pre-payment penalties."
"Usually transactions are made for 10% to 15% of a home’s value, or it could be a smaller piece such as 5%.
At the end of the term — or whenever the homeowner decides to settle the investment — the homeowner pays Hometap an agreed upon percentage of the final home value.
If the home goes down in value, Hometap takes a smaller percentage of what is now a lower value when the home is sold or when the investment is settled. But the company is building a portfolio of homes in various markets to reduce this risk to its investors in the fund."
I wonder if they'll need appraisals?
