Republics and democracies rely on people having power and ownership in their communities. In our modern world much of this power, in the form of home ownership, is relegated to debt-financed mortgages on homes.
We believe there is a financial path to home ownership that sits between mortgages and renting that will provide adequate returns to investors and dominate both mortgages and renting.
The social impact, and market impact, could be staggering if we are right.
Sounds like a cool idea, but I couldn’t figure out how you bootstrap. Do you rely on warm hearted homeowners to take a cut in their potential profit from the potential for renting ?
Our models indicate if we can get market rate mortgage debt on our portfolio (likely) to fund 80%, and prime plus low to average mezzanine debt rates on 15% to fund the rest all holders can make returns - including equity - so long as we minimize fees and keep occupancy high.
In the long run, there are many ways being the gateway to financing a home / a person's largest monthly expense allows many methods for expansion.
Real estate is a fairly efficient market but the strange dichotomy between rent and mortgages mean there are two starkly different return structures. There's a lot of margin in between the two to create a hybrid that satisfies everyone.
I’m not savvy when it comes to debt, mortgages, real estate, investors, and the like, so I have difficulty understanding your message. But, I am happy to hear you’re going for it!
5 comments
[ 2.9 ms ] story [ 18.8 ms ] threadRepublics and democracies rely on people having power and ownership in their communities. In our modern world much of this power, in the form of home ownership, is relegated to debt-financed mortgages on homes.
We believe there is a financial path to home ownership that sits between mortgages and renting that will provide adequate returns to investors and dominate both mortgages and renting.
The social impact, and market impact, could be staggering if we are right.
Our models indicate if we can get market rate mortgage debt on our portfolio (likely) to fund 80%, and prime plus low to average mezzanine debt rates on 15% to fund the rest all holders can make returns - including equity - so long as we minimize fees and keep occupancy high.
In the long run, there are many ways being the gateway to financing a home / a person's largest monthly expense allows many methods for expansion.
Real estate is a fairly efficient market but the strange dichotomy between rent and mortgages mean there are two starkly different return structures. There's a lot of margin in between the two to create a hybrid that satisfies everyone.