Equity Sharing Washington DC

The symbiotic relationship spawned by equity sharing requires a nurturing housing market and a well-orchestrated contract if it is to evolve into an American Dream.

by Broderick Perkins
© 2008 DeadlineNews.Com

Deadline Newsroom - Consider equity sharing a symbiotic relationship -- as well as a legal agreement -- between two or more people holding title to one home.

Las Vegas-based Creative Real Estate Online publisher, J. P. Vaughan, also a trial lawyer and real estate investor says, properly designed, the creative financing strategy can be a triple-win proposition.

An equity sharing deal is typically struck help sell a home, often in a tough market, but a tough market isn't a prerequisite. It also helps enable a home purchase when it might not otherwise be possible. And it is used to provide an investment with a financial return.

• Typically savings-poor, but income-rich, one person becomes the occupying homeowner with no or little money down.

• A second participant, the investor, provides the initial leverage usually in the form of a down payment stake. With time, he or she can enjoy a joint venture-like return on his or her money.

• The seller, in a slow market, can choose to become the investor or otherwise use the creative financing strategy to quickly seal a deal. ...

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