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What is Equity Sharing?

Equity Sharing is the sharing of equity of real property by two or more parties for a mutually agreed period of time.

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.

In 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.

Our Role

FRENDCO Facilitation Services’ role is that of a creative intermediary that provides the "Equity Share Agreement".

We believe as home prices continue to rise and more buyers are forced out of the housing market this will become an important option for real estate to be transacted in the 21st century.

James A. Walker, Attorney at Law Speaks Out

"I was altogether unprepared for the scope of service and creativity that Frank brought to my situation...

The process posed some formidable challenges. These were all solved by Frank’s skillful education and demonstration to those involved in finance that creative solutions work not only conceptually but also on a dollar and cents level.

Frank can tell you how skeptical my wife and I were. Now that the process is finished and we have seen him work, I can tell you how certain we are that there is any way possible, Frank can make it work.

But having said this, I should warn that Frank’s definition of the word “possible” may be more broad than you expect."

For more Testimonials Click Here

RECO (Resident Co-Owner)

During 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.

INCO (Investor Co-Owner)

Since 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.

The 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.

Agreement Term

When 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.

The 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 Benefits

This 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.

The 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.

Owners 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.

With an Equity Share arrangement, the residant co-owner has all the financial responsibility. They pay all the taxes, insurance, utilities, maintenance and upkeep.

What 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!"

Note: The previous description is a basic overview of our program. For more details click on the available links above or e-mail FRENDCO.