Agent Frequently Asked Questions
Welcome to the Home Equity Share Family!
The Home Equity Share team is honored to work with you and excited you will be part of a team making it possible for buyers to purchase homes who might not otherwise be able to, and for real estate investors to thrive during this real estate lull.
Q: I noticed that your not charging me a monthly fee to receive leads or reserve territories, and you don't have a bunch of advertisements on your website. How does your company make money?
A: Referral commissions from agents. About 60% of our clients ask us to refer them to an agent. When that agent gets a commission for helping the client buy a house, we get 30% of that commission as a "thank you" for generating a deal for the agent. About 40% of our clients already have an agent. In these cases, we can offer our package of tools and services to the client for free once the agent joins our Agent Network, i.e. the agent commits to the 30% referral fee. Either way, it helps agents do deals and earn commissions that otherwise would not have happened.
Q: What is the difference between equity sharing, co-ownership, joint ownership and tenancy-in-common?
A: Nothing. These terms are different ways of expressing the same thing.
Q: What is my role in the equity share transaction?
A: Your job is the same as in a more traditional real estate transaction. Your role is to find the right property for your client. The difference is you have two or more clients in an equity share transaction.
Q: What advantages do we get from becoming part of your network?
A: When you are part of our referral network, you receive the Equity Share Toolkit ™. The Toolkit is designed to help agents facilitate equity share real estate deals, making it easier and cheaper to close the deal. The Equity Share Toolkit ™consists of the Equity Share Calculator, the model Preliminary Commitment, and the model Equity Sharing Agreement. Also part of the Equity Share Toolkit is the Equity Share Transaction Guide and email facilitation by the innovator and equity share pro, Marilyn Sullivan.
Q: How do we use the Equity Share Toolkit™?
A: The items in the Equity Share Toolkit™ help you and your clients facilitate equity sharing deals more easily and cheaply. We provide you with simple fill-in-the-blank forms that will save your clients time and money.
Q: Do we get any credential from our affiliation with you?
A: Yes. We give you the Certified Equity Sharing Professional™ designation when you successfully complete three equity share transactions.
Q: How much does the CESP™ designation costs?
A: It is free of charge. You earned it by closing three transactions with us.
Q: Why would we need facilitation in these transactions?
A: You don’t. We just provide it as a convenience since this process is a little different. But, always review these FAQs before you engage in e-mail facilitation since you only have five email exchanges per transaction.
Q: When will your Agent Network be open so we may join?
A: Our Agent Network will be ready in late 2008. For now, sign up to be notified when the network goes live.
Q: Is joining the Agent Network free?
A: Yes.
Q: For those of us already members of your network, how do we gain access to the Equity Share Toolkit?
A: You should have received an e-mail directing you to this private page on our website. Contact us if you can’t find it.
Q: What else do we get when we join your network?
A: You will be referred equity share matches in your area.
Q: Is there a fee?
A: Home Equity Share charges a 30% referral fee from the commission you earn on transactions involving one of our customers. The broker in your office will formalize this by signing a standard referral agreement with our broker.
Q: Is Home Equity Share a licensed real estate broker?
A: Yes. We are a real estate brokerage licensed by the California Department of Real Estate under License No. 01794446.
Q: Do these equity share partners need a special loan?
A: It is possible to get a regular loan in the name of the co-owners. However, if the investor does not want to be on the loan or the home buyer/occupier wants the owner-occupier rate, you do. We can refer clients to lenders who do equity sharing loans.
Q: Do the lender or title company need to see the co-owners’ agreement?
A: No, this document is a private agreement where the co-owners describe the rights and obligations of their co-ownership.
Q: Do the co-owners sign the Equity Sharing Agreement before they make the offer?
A: No, they sign the Preliminary Commitment which affirms their intentions to co-own property. The Equity Sharing Agreement is signed when the partners find a property and make an offer on it.
Q: What if the co-owners need answers about equity sharing beyond my expertise?
A: They should be referred to a real estate attorney or CPA: See our home page for referral to these professionals.
Q: What about all my clients who can’t sell their homes or can’t buy because they don’t have the down payment? Should they sign up on your site and receive a partner match?
A: Yes. Soon you will sign up on our Open Agent Network and your client will be referred back to you. After the Open Agent Network launches, you and your clients will also have access to the Equity Share Toolkit ™.
Q: What if I have more questions about equity sharing. Where should I go?
A: Read through the Home Buyer and Investor FAQs and review the Equity Share Blog.
