Equity Share Explained; Benefits to Investors, Home Occupier, and Seller

WHY IS THIS GOOD FOR THE INVESTOR?

Investor Benefits

• Investor has a built in long term occupier to make all the payments.
• Investor has no tenant hassles.
• Investor gets a percentage of the appreciation.
• Investor gets a percentage of the depreciation on the property.
• Investor gets an occupier with a vested interest in the property.
• Investor can 1031 tax exchange out of the property.

Occupier Benefits

• Occupier has ownership interest immediately.
• Occupier gets in for a small down payment plus closing costs.
• Occupier gets more home for their down payment.
• Occupier gets interest deduction & R.E. Tax deductions.
• Occupier gets a percentage of the appreciation.
• Occupier gets a percentage of the mortgage pay-down or principal reduction.
• Occupier can buy the home at anytime during the agreement, at appraised value.
• Occupier has great flexibility with the equity share agreement.

Seller Benefits

• 1. Large new market of potential buyers.
• 2. Sell home faster
• 3. Sell for 100% of full-appraised asking price.
• 4. Participate in future appreciation.
• 5. No cash out-of-pocket investment
• 6. Create an investment portfolio.
• 7. No tax, maintenance, or insurance responsibility.
• 8. Competitive marketing advantage.
• 9.  Tax benefits possible with an IRS 1031 Exchange.
• 10. Tax benefits possible with depreciation.