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Updated over 4 years ago on . Most recent reply
![Nikhil Nirmel's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1244615/1621510617-avatar-nikhiln2.jpg?twic=v1/output=image/crop=1236x1236@1063x15/cover=128x128&v=2)
How to find owners who would sell home equity?
I have a program that allows high-equity property owners to sell a fraction of their properties' eventual sale price to buyers, simulating the sale of home equity. After quite a bit of work, I've got the investor side lined up, but now I'm struggling to find property owners who want to get cash out of their property by selling equity rather than borrowing against the equity. Most high-equity owners I talk to are not looking to reduce their equity position, and those who are, seem to feel more comfortable with the traditional home equity loan or reverse mortgage route. Any tips on how to identify owners who would be motivated to sell equity as a method of cashing out or refinancing? I'm looking into tax delinquent, inheritance, absentee leads. Could use other ideas.
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- Rock Star Extraordinaire
- Northeast, TN
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I think that is a really tough sell. I can't think of too many reasons why anyone would want to do this - it's essentially bringing a partner into your ownership stake - and I can see most people being scared off by the novelty of it. The other part of that is what is the return for the buyer of the equity if the property doesn't sell?
I would think your best bet would be people who already understand business and would prefer to have a partner in order to access cash now for whatever reason than wait for a sale to be concluded - commercial property owners expecting a sale, for example, or business owners.
- JD Martin
- Podcast Guest on Show #243
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