today's real estate climate, the survivors are those that can think
FRENDCO Creative Financing and Equity Share Specialist's have been
successfully solving Seller and Buyer problems since 1992.
is Equity Sharing?
Sharing is simply the sharing of equity of real property by two
or more parties for a mutually agreed period of time. We believe
with rising prices this is the way real estate will eventually be
transacted in the 21st century.
It matches a qualified homebuyer with an investor who contributes
the down payment. The investor may be a cash investor or the seller
of the property contributing their equity (No out-of-pocket cash.)
as the down payment for the buyer.
return, the investor retains an ownership position in the property.
Since there are multiple parties involved, a formal "Equity
Share Agreement" defining the terms and conditions agreed to
by the parties should always be in place.
Facilitation Services’ role is that of an intermediary that
provides the "Equity Share Agreement".
the agreement period, the homebuyer lives in and enjoys all the
comforts of home ownership, and pays the normal expenses including
principle, interest, taxes, insurance, maintenance, and upkeep.
They also benefit from tax deductions based on the loan interest
and property taxes they pay.
the down payment provided by the investor is an investment and not
a loan the homebuyer usually makes no monthly payments, so their
finances are not negatively impacted.
investor’s investment is similar to buying stock in the stock
market. Their return is based-upon their expectation that the property
will increase in value over the next number of years.
the agreement matures, the homebuyer has enjoyed home ownership,
and assuming the home has appreciated sufficiently the homebuyer
may have accumulated a nest egg that could allow them to purchase
another home on their own.
homebuyer then has the option to either 1) refinance, buy out the
investor’s interest and remain in the home indefinitely as
sole owner or 2) the parties can decide to sell the home on the
open market, pay off all encumbrances, and each reimbursed according
to their respective ownership position and cash outlay.
program offers buyers in need of assistance, a springboard or stepping-stone
that can help get them off the rental roles and achieve the American
dream of home ownership.
Investor has helped someone in need and made a potentially good
real estate investment that also offers tax benefits plus participation
in future appreciation.
In addition, investors have none of the costs or management hassles
associated with owning rental property. Upon the term of the agreement,
they may also take advantage of depreciation benefits and defer
capital gains taxes via the Internal Revenue Code 1031 exchange.
of rental property can be better off financially owning 50% of 2
properties with an Equity Share arrangement, than 100% of 1 property
the conventional way.
an Equity Share arrangement, the residant co-owner has all the financial
responsibility. They pay all the taxes, insurance, utilities, maintenance
is it worth to an Investor of rental property to not receive any
phone calls from a residant because something had to be fixed or
replaced? As they say, "Time is money!"
The previous description is a basic overview
of our program. For more details click on the available links above
and/or e-mail FRENDCO.