Home Equity Investor???

[Petronilo Rosel]

I was researching alternative financing options and stumbled upon Home Equity Investors. Basically they will give you a loan based on you home's current value for a share of your home's value. This doesn't appear as an additional debt, it's "no" interest, and carries no monthly payments. 

The catch is that the loan is given with a 10 year term in which you will have to buy back their share of your home's value at the time of buyout. I see how they plan to make money through appreciation, so lets say your current home is worth 1,000,000 and you decide to get a 100,000 loan. If in ten years your home value goes up to say 1,500,000 you'd have to buyout their share for 250,000 (this is an example from a home equity investor site I found).

From what I researched, 10 years looks to be the typical term length, with the option to buy them out at any time. So with the intent of using them as a short term lender for buying a fixer upper cash, renovating, refinancing and buying them out within 6 months to a year with the refi, I don't see appreciation going up too much in that time frame. 

So in the end it's like a hard money lender, but with a more flexible term. I was just wondering if anybody knew more about these companies as their websites are very vague with the technically information.