Home Equity Investment - Thoughts?

[Mutiara Hobbs]

Hi everyone,

I'm doing a research on how to tap into our Home equity while minimizing our downsides. I know we can tap into home equity by means of refinancing or get a HELOC. We're planning to use the equity to invest in Real Estates in generaI. I came across this loan concept called Home Equity Investment (ie shared appreciation investment) to potentially do just that. So far, I like this method as there are no monthly payments and the loan payment is due in lump sum when we sell our house. We'd pay the loan amount + some % of the equity when we sell our house. Wondering what your thoughts are on this?

Thanks,

Mutiara