Selling Home Equity vs. HELOC

[Don Johnson]

Hi BP community,

Has anyone worked with or gotten a quote from Point? They are a company that will give you cash now for a stake in the future equity of your home. Maximum 10-year payback period. Seems like an interesting way to tap into my home's equity without taking on the burden of direct debt.

It's an option I am considering instead of doing a cash-out refinance to purchase a small multifamily building. My main hesitation is that I live in a strong housing market where prices seem to be forever rising. Every year the market says the top is here but it never seems to come true. Ideally, we're pretty close to the top so the upside I'd be giving up is minimal. 

My crystal ball seems to be broken so I can't tell where the market is going today.  In the absence, I'd love to see what folks think of the product and any considerations I might be missing here. Thanks!

[Justin Kane]

I have not, seems like an interesting idea (for desperate people) you are still looking at 12% interest and god knows what kind of closing fees and sneaky number plays they do through the process