Equity Sharing 301
Why is Equity Sharing such a powerful tool, and why does the light from it reach so far beyond our entrenched way of buying and selling homes? Now we’re about to reach deep into the passion I have about this subject, so please allow me to be both subjective and objective while answering this.
At its heart, buying a home is a two-way transaction. It’s classic HAVE/WANT economics. The bank “has” money, and we “want” a home. So let’s set up some guidelines, put up some fences around the playing field, and let the game begin. This is a game, however, that limits the players by virtue of the guidelines and fences that were erected by the banks and financial institutions. These rules have a history, with a universal, almost numbing set of qualifications. We are lemmings running to the clift edge, not knowing why, numbed by marketing from real estate companies and banks, all of whom seem to be driving in the same lane, to the same destination, with the same old ideas.
What if the way we were taught to buy and sell real estate is flawed? Not flawed so that it never works, or even often works, but that it doesn’t always work. And IF we were to make a small change to the rules, i.e. adding a player or two to the game, we could greatly increase the number of successful players.
This happened to me a couple of years ago because of a simple card game of Hearts. You see, I love to play this game. It’s a combination of good card playing, strategy and a little bit of balderdash. So what happens when you love the game, but the only player in your universe with whom you can go head to head is just simply better! Better, brighter, quicker, more experienced in the realm of cards. So much better that your game never even gets better. You play with hopes of getting some great or lucky cards, and yet you know you will eventually be bested by a superior player.
What happens, however, if I log onto a Hearts gaming site on the internet? Whoa!!! What happens now is that I can choose to play against players of different levels of experience. I can play, learn and prosper. I can be challenged, and be a challenge. You see, with the introduction of multiple players, the game is considerably more interesting to me, and what is germaine to this conversation, the game is now able to be won by me. I CAN succeed. I CAN compete. I CAN belong. I CAN…………buy that house I’ve always wanted.
Equity Sharing, with the addition of an investor and a real estate attorney who will draft occupancy agreements, turns a game for some into a game for all. Equity Sharing, by turning a single lane highway into a 2, 3 or4 lane freeway, makes the path to home ownership uniquely accessible. Equity Sharing, with multiple players sharing responsibility reduces the risk of playing out of your league. Equity Sharing, which Marilyn Sullivan, the leading authority on the subject, defines as “people who jointly buy property and share ownership,” is THE single most effective way for members of the real estate community, and for potential buyers and sellers, to significantly broaden their ability to own or sell property.
Here are a couple of powerful concepts that encompass the potential of Equity Sharing.
Equity Sharing offers the POSSIBILITY of success when all other doors have closed.
Equity Sharing may actually cost less than buying or selling in the traditionally financed manner since any additional costs are offset by friendlier and more generous terms.
Equity Sharing for sellers can be a much more effective and potentially secure way for sellers to finance the sale of their home (as opposed to seller carrybacks).
Equity Sharing isn’t new, just underutilized.
Equity Sharing is perhaps the most sociologically friendly real estate concept, allowing particpation in a black and white world by those whose philosophies encompass sharing as a mainstay.
Heed the call for this tested and effective way of buying and selling your next home. Equity Sharing has something for everyone to ponder, and in many situations is just “the ticket” (as Jon Lovell used to say on SNL) for success.