Private investors for equity co-investment

[Craig Jones]

I've got a $3.3M SFH, currently a STR that does very well. However, I've got *a lot* of equity tied up in it that I'd like to deploy elsewhere. $1.5M mortgage, 30-year-fixed at 2.5% so I really do not want to sell or refi.

I've looked at equity co-investment outfits like Point and Hometap, but the deal terms seem atrocious.  Hometap claims "no interest" but if you look at cash now vs. percent equity they'd take in a future sale, the implied interest rate is something like 25%.

Are there private investors out there who are interested in doing similar deals with better terms?  Also open to hearing other ideas for this situation.

[Ko Kashiwagi]

Hi Craig,

Have you considered putting a second position mortgage on it? That way you could get a loan on it while keeping the first. Rates will be higher than refinancing, but if you insist on keeping the first, this is a good strategy.