Save for a down payment while paying rent

by garymendel • 3 years ago

1 3 3 years ago

garymendel2• 3 years ago

rent is a trap. fc matches renters w/ investors (and landlords) to fund down payments in exchange for a share in the home's future equity.

MattGaiser• 3 years ago

How does this work? How does an investor generate outsized returns while giving away equity without charging someone a far higher rent payment than market? And if they are charging a far higher rent payment than market, why wouldn't a person be better off saving the difference on their own?

garymendel2• 3 years ago

hi matt, lemme address each question specifically (this is gary fc founder)

Q. How does this work?

A. investors (or landlords/hosts) are matched with renters based on similar goals (like the amount of return the investor seeks and the amount of return the renter is willing to pay - which is called rent-equity (RE%)).

investors pay-in (to fc) monthly until the down payment goal is reached. the renter buys a home and the investor owns their contribution (as a %) in the appreciating value of the home.

Q. How does an investor generate outsized returns while giving away equity without charging someone a far higher rent payment than market?

A. the investor(or landlord) doesn't give away equity, the renter does that. the investor(or landlord) names their own return and the system matches them with a renter willing to pay it. they enter an agreement to that effect.

Q. And if they are charging a far higher rent payment than market, why wouldn't a person be better off saving the difference on their own?

A. there is no effect on rent payment. whatever the rent is it gets banked (by the investor(or landlord) until (zero to 48 months later) it reaches the down payment goal.

the renter buys a home and the investor(or landlord) now owns a share of the equity equal to the dp funded + RE%.

there are several ways for the investor(or landlord) to become liquid - ill gladly describe if you are interested.

thank you for your questions.

Save for a down payment while paying rent

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