Cash Out Refinance, HELOC, and Co-Investing

[Josh Green]

Hi All,

I want this discussion to focus on the latter as I've found it pretty simple to understand the pros/cons of Cash out Refi vs HELOC and the strategic purposes each can have. However, I wanted to reach out to those that have dabbled with or looked into co-investing. A basic definition for readers: Co-Investing is basically a way for an investor to give you cash for a share of your projected future appreciation. It acts as a Cash Out Refi in that you can tap into your home equity without refinancing. You are given cash based on your appraisal value with a LTV requirement, and in return are obligated to return equity in the future for doing so.

I am just looking for any details, pros/cons, experiences you have had with Co-Investing.  What companies are competitive in offering this program?  What are the terms generally (% share, how the appraisal before and after sale works, holding periods, penalties, etc)?  I think this could be a useful tool for many investors that have captured attractive interest rates on their properties the past couple years and still leverage the equity without resetting their mortgage and interest rates.  Of course, with every opportunity comes a cost and that is what I'm trying to get a better idea on before setting up a consultation with a co-investing platform.