Home Equity Share | high risk approach to online mortgage lending
New slant on Social Lending here from Home Equity Share, based in the US. The concept seems to bring together first time home buyers, with insufficient, or no down payment, with potential real estate investors, to provide home ownership benefits along with landlord type real estate investment financial benefit.
Home Equity Share: Find Real Estate Co-Ownership Partners
Home Equity Share is the online marketplace for real estate co-ownership. We help home buyers overcome the high price of real estate by matching them with investors, allowing both parties to co-own property and enjoy the benefits.Use Home Equity Share to find a real-estate partner, calculate your profit potential, and complete the Equity Sharing Agreement, all for free.
I see some real risks here, and I was not able to satisfy them in reading the site, because it is very American oriented. It is also interesting timing given the jitters emanating from the Sub Prime fiasco. In fact, this model probably won’t work without a sub prime mortgage marketplace to support it. Some thoughts:
- 100% financing is encouraged here, and that is dangerous in a soft or declining market
- the built in calculator defaults to 6% annual real estate value increase over the next 5 years – a dangerous assumption for neophytes
- down payment financing is not permitted in Canada for insured mortgages, and highly frowned on by Banks for any mortgage. The US market is different, but is tightening, so it is not clear to me how the 1st mortgage is arranged in this scenario.
We shall watch with interest. I still look for a P2P lending site for mortgages, that follows normal lending practices, yet offers an alternative to using Banks. I do not see this company in that light.
Thoughts?
Have you heard of prosper.com? They’re doing something on a smaller scale for P2P loans.
Brian
October 3, 2007 at 01:08
I have signed up @ homequityshare and have tried to get something going. So far, 3 months later nothing has happened and no one has responded to any of my messages. Sounds like Vaporware to me.
atonyman
June 16, 2008 at 17:23
[...] Co-Ownership Partners. Home equity Share is the online marketplace for real estate co-ownership. …http://thebankwatch.com/2007/08/15/home-equity-share-high-risk-approach-to-online-mortgage-lending/Pioneer Real Estate Shares VCT PortfolioReal estate shares invests primarily in equity … This [...]
compare equity shares with real estate
June 24, 2008 at 05:09
Nice Article fore more info check out Equity Research
Mike
July 1, 2008 at 22:51
The Freedom Fund (the, “Fund”), is a private fund of money allocated to co-invest with individuals in real estate. The Fund allows both first-time homebuyers and seasoned investors to convert the equity in the property they purchase into immediate cash with n monthly payments ever. In exchange for the cash today, the homeowner or investor agrees to share up to 50 percent of the future equity growth of the specific property with the fund
After entering g into the agreement with the Fund pays you an amount predetermined by the Fund and you depend on the amount of the share in future equity. Additionally, this amount is dependent on the type of property, geographic location and occupancy type.
For more information e-mail
Jtaylor@woodsatcountryside.com
Or visit
http://www.freedomfundaccess.com
john Taylor
August 4, 2008 at 11:56
I went to the buyersequityfund.com website and they give a great explanation on how equity share works. Let many know if anyone has been to this website.
Thanks
Mike
Mike
August 20, 2008 at 12:17