Are Equity Share Programs a Myth?

I am trying to help a client make the purchase of a home more affordable.

Credit: Middle Score 592 ( pulled about a month ago)
Low 549
High 626

He is at the end of the buying process.

Purchase price $143,500
Apprasied July 2nd 2006 at $144,000

This will be his primary residence.

The house was built in 2004. The home Incpector told he there are a few minorthings but he would getting a well constructed home.

The property is located in the Brookfield Crossing/Glen subdivision in Pflugerville Texas.

Just started construction on a new Elem school about 2 blocks from the house. The Elem school will open next fall.

Chap 7 Bankruptcy discharged in November 2005

He has been with his current employeer (State of Texas) 18 months doing the same type work 13 years.

Regular Monthly paymets total $1,211
Current Rent $900 (same apartment 2 years)

Current Total Monthly $2111.00

Gross Monthly Income. $7020.00

I do not know anything about equity sharing or who participates in them.

Right now he is scheduled to close with a high rate 80/20 loan next Thursday.

I appreciate any guidance and advice you could offer me for my client.


It depends on the region:

I work in San Diego, in real estate. I can think of 3 equity-share programs off the top of my head and 3 other distinctive First-Time Buyer Programs.

Truth be told, many equity-share programs are exclusively for first-time buyers.

Unfortunately, too many lenders are ignorant of their local buyer-programs or equity-share. You’ll have to be fairly proactive in talking to lenders and “wholesale” lenders as well.

Truth be told, Equity share programs are for anyone at anytime and are certainly not limited to first-time buyers. My properties are made available through a land trust, combined with a triple net lease and equity sharing. Lenders often have nothing to do with it as I don’t require bank qualifying.

I recommend you read up on equity sharing and other methods of managing income property so you fully understand your options.

Da Wiz


Can you recommend some reading on “equity sharing”? Also, is there any about real estate investing that you don’t know? I am always impressed with your depth of knowledge.