Ask HN: Housing for equity?

https://news.ycombinator.com/item?id=536106

by jmtame • 17 years ago

3 8 17 years ago

news.ycombinator.com

I'm not sure if this is even considered to be a good idea in general. Has anyone offered equity to get free rent? Can it cause problems later down the road?

chiffonade2• 17 years ago

For fuck's sake, equity is not cash, stop using and thinking about it like cash.

And what kind of landlord would even go for this? Mortgages can't be paid in equity, either.

mixmax• 17 years ago

If someone is willing to buy your equity it's as good as cash.

You do need a buyer for it though...

chiffonade2• 17 years ago

> If someone is willing to buy your equity it's as good as cash.

Which means it isn't cash.

noodle• 17 years ago

if the arrangement works for all parties involved, why not? get it in contract form.

pg2• 17 years ago

During the Bubble in the late 90s (funny one now has to specify) some commercial landlords used to get paid partially in warrants, which are basically the corporate equivalent of stock options. It's not so common now, though, and it wouldn't be a good plan for a very small startup anyway, because landlords would have no idea how to value you.

byrneseyeview• 17 years ago

I've heard many people say this happened, but very few examples (besides Paypal). Are there any other examples?

pg2• 17 years ago

I think most of the time the landlords lost. That's why they don't do it anymore.

enduser• 17 years ago

It works better the other way around: buy something and rent it out to get free equity.

Ask HN: Housing for equity?

Related Stories