199 - Do you have Home Equity you wish to use for investing? W/ Matthew Sullivan

Have you ever heard of  Shared Equity? Well, neither had I until I talked with this week’s guest, Matthew Sullivan. 

 

 If you are like me,  you have a decent amount of home equity locked into your home with no easy way to access that cash that could be put to better use. 

 

The traditional means to try to access the cash -- through a HELOC or Cash-out Refi -- comes with a lot of hassle (sending in all of your financials and the blood of your firstborn) to the mortgage bank. You have to qualify all over again just to get what’s yours out of an asset you own. And, it comes at the cost of adding more debt to your balance sheet along with a higher monthly payment. 

 

What if I told you that you could access that equity without having to re-qualify and without having to take on more debt and respective debt payments? 

 

This innovative way to tap into your equity is called a Home Equity Agreement. Instead of taking on debt, you share the future equity as a means to access your cash. Since it’s equity and not debt, there is no loan,  no monthly payments, and no interest payable. The Home Equity provider banks on your property going up in value and they share in those gains with you when you sell your house. 

 

The Home Equity Agreements (HEA) might be interesting to an Investor as well. Through a HEA, an accredited investor could invest in a house that they do not own. 

 

If I’ve piqued your curiosity, then you’ll wish to listen to this episode. I learned about an emerging new field that I’d never heard of before when it comes to home finance. So, if it’s new to me, I’m guessing it’s new to you as well. And, since you’re like me, you LOVE to learn new things :).

 

Matthew Sullivan is the founder and chief executive officer of QuantmRE and the founder of Crowdventure.com. Matthew spent a number of years working alongside Richard Branson and the Virgin corporate finance team in London, UK.

 

In this conversation, we run through scenarios and talk everything about home equity.

 

* Traditional Types of Home Equity.

* How he stumbled across the concept of shared equity

* How a Home Equity Agreements is different from the more traditional options.

* We walk through the process a homeowner would take to capitalize on this

* How much money might be on the table for you

* What the setup fees look like

* What Risks a Homeowner Might Encounter

* How you could become an investor in this growing sector

* How he wants to incorporate BlockChain technology into his business

* The potential pitfalls and rewards of being an investor in this sector.