I’ve read about a technique called “equity sharing”. Can the more experienced investors give an examples of how this technique can be used? What is the advantage of this method over other investing methods such as lease options or seller financing?
I have to step into my WayBack Machine for this one…if we’re both talking about the same thing.
I know about 20 years ago there were investors who would put down money for a house and then find another person to live in it and make the payments. The agreement was to sell the house in “X” years and split the profit.
Is this what you’re talking about?
Paul,
Thanks for the reply. I recently heard the term, but I didn’t know how it was used. It would seem seller financing would be cheaper for the investor and less risky.
Well, seller financing would be useful if you already own a property and are trying to sell it. My understanding of equity sharing was that this was supposed to be a way for investors to enjoy appreciation of a property without making the monthly payments out of their own pocket.
I always thought this was what being a landlord was all about…why would you accept half of the upside when you should be getting all of it?