Equity Sharing Involves Risk
While the benefits of real-estate co-ownership are fairly obvious, it’s important to consider the risks and disadvantages as well. When you enter into an equity-sharing agreement you are making certain commitments to your partner, and giving up certain rights.
Partnership Risk
When you engage in joint ownership of real estate, you must consult with your partner regarding significant repairs or major improvements. You’ll also need agreement from your partner if you decide you want to sell early or otherwise amend your agreement.
Financial Risk
Like any investment, the purchase of real estate involves risk. You can lower your risk by choosing an experienced investor partner and carefully selecting property likely to appreciate in value. Nonetheless, there is always the risk that your investment won’t provide the expected rate of return.
Complexity Risk
Buying real estate is a complicated process with many steps and legal documents involved. When you buy property jointly there are a few additional documents required, and it may be confusing to people unfamiliar with the concept. To help lower this risk Home Equity Share provides the necessary documents and we offer support to real estate agents to help buyers and investors new to equity sharing.
After weighing the benefits and risks, if you’ve decided to proceed with equity sharing you can join and complete a profile for free.
