314 Exchange, a better alternative to 1031 exchange

[Mel Anic]

1031s force landlords to scale up. Cashout ReFis trap your equity in RE. We believe we have a solution to both.

Summary on terms:
100% LTV
3.5% Fixed Interest
2nd Property only required to have 25% of funds transferred compared to 100% in the 1031

Benefits: 100% Cash out, keep your tax and income benefits.

Hi everyone. I've been a HUGE fan of Biggerpockets for quite some time now. It's helped me tremendously and through my first several flips & BRRRs. I haven't been too active on the forum side of things!Long story short, opening this world up has led me down a rabbit hole of different types of entrepreneurial ventures.We are launching a new form of service called Homeownership on Demand.

We've seen the absolute nightmare of homeownership with the rising prices. The lower and middle class are getting destroyed. We aim to combat that by giving families an option to buy their apartment unit for 2% down.

How it works:

1. - Tenant opts into rent to own program, pays 2% Down
2. - As they pay their monthly rent, they pay down their program
3. - If they fully pay off their 30 year loan, they become a part owner in the building itself.
   - Example is if there are 10 units and they pay off their unit, they're a 1/10th owner
4. - They have an option to trade in their equity and we assist them buying their homes

Where investors come in: On approved properties, If you are a multi family owner in Southern California, you are able to 100% LTV Cash out and we would sell out the units via our proprietary equity model. You are able to exit without having to trust us to pay you. We sell the units to high quality owner-residents (2% Downpayment is on avg 5x higher than standard deposits). We also do a strict underwriting similar to a mortgage. Now they're fully aligned with the unit and are higher quality on average! We've all seen owner vs tenant behaviors.

The interesting part: You are able to exit at a 100% LTV, keep your tax benefits and everytime a unit sells, you make a piece of that appreciation, even though you already exited the building! An example would be a $300,000 unit appreciates 4% a year and sells in 3 years. You'd make $6000, even though you have already cashed out. You keep 25% of appreciation on all units, forever! How we make money: We manage the building and charge the residents a small fee. Most of the upside is to the former building owner and the residents. We also charge the banks and investors on the back end who are holding the income product.

More details below where you can book a call if you're interested in joining our pilot. We're only doing 100M for our pilot study in Orange County, CA

Link to PDF:
https://drive.google.com/file/...