If you have a fair amount of equity in your home, equity partnering can be the best way to go if you are trying to sell your house. Many times homeowners who want to renovate before selling opt for equity partnering because they can’t afford to take on repair/renovation costs in addition to paying off the rest of their mortgage.

With equity partnering, the investor partner buys the house, then turns around and sells (sometimes after renovation, sometimes as-is). The original homeowner then gets a portion of the final profit. In many cases this is about 1/3.

Pragmatically speaking, equity partnering tends to be an option only in situations where a house is likely to generate a high enough profit to be worth the investment. For homeowners this often means a good amount of equity and oftentimes these are homeowners who already have plans in the making for flipping the house, but these are not the only scenarios.

There are several other ways equity partnership can work, but these kinds of transactions tend to be very situation-specific and complex. Contact us for free assistance and find out if equity partnership or another option is really the best route for you.

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