How does EquityKey make money?

EquityKey believes the growth of real estate will outpace the payments we make to clients. We are willing to invest money today to share in the potential profit of the future. EquityKey realizes its profit by purchasing the home at the end of the agreement.

What is the EquityKey Participation Rate?

The Participation Rate is the percentage of the appreciated value of the participant’s home which they agree to share with EquityKey, either: 1) when they sell the home, or 2) when they pass away. For a single qualifi ed homeowner, the Participation Rate is 50%. If there are two homeowners and both wish to participate and are qualified, the Participation Rate can be 100%, and both would receive payments from EquityKey.  For instance, for a single qualifi ed homeowner and a 50% Participation Rate, EquityKey will receive 50% of the increased value of the home when the owner passes away or sells the property.

How much money will I receive in the EquityKey Program?

The dollar amount of the lump sum is based primarily on the current value of the home (70% Loan to Value is the minimum requirement), the Participation Rate, and how well the client(s) can qualify for life insurance. For each participant, the lump sum option is between 12%-15% of the home value (24%-30% if both participate).

Do I ever have to pay the money back to EquityKey?

No, as long as you keep up your end of the bargain. The money received is not a loan, line of credit, or debt of any kind. Participants receive a lump sum or monthly payments in exchange for the future and unknown appreciation of their home. Please refer to the EquityKey contract for a complete description of your responsibilities as a homeowner in the EquityKey Program.

What happens to the home?

Plan participants maintain their rights and obligations as homeowners as long as they own the home and throughout their life, regardless of whether or not they continue to reside in it. EquityKey’s only interest is its share of the future appreciation above the initial appraisal value. To realize this share of appreciation, EquityKey purchases the home upon the client’s death, and also has a right to buy the home should the client choose to sell before his or her passing. Regardless of when EquityKey buys the home, we do so at fair market value minus our share of appreciation and acquisition costs.

Does EquityKey always purchase the property? What if I want my home to stay in my family?

In most cases, EquityKey will be the purchaser of the home upon the client’s passing or decision to sell. In some cases, specifically very depressed real estate markets, EquityKey may leave its option to purchase the property unexercised. In all cases, should your heirs or estate wish to keep the property in the family, they will have the right of first refusal to purchase the home back from EquityKey at fair market value.

What responsibilities will I have after signing an EquityKey Investment Agreement?

Please refer to the EquityKey Investment Agreement for a complete list of your obligations which include, but are not limited to:

• Maintaining an appropriate amount of property insurance on your home
• Repairing your home if it suffers significant damage
• Not allowing liens to be placed on the property other than those approved by EquityKey and arising upon the refinancing of your mortgage (so long as the loan value is less than 70% of the value of your home)
• Not defaulting on any debt you may have secured by your home

 
Because you will have additional obligations, you should carefully review the EquityKey Investment Agreement with your own advisors to ensure that you understand all of your obligations.