Podcast: Episode 1050: Unlock Your Home Equity Without Taking on Additional Debt

Key Points:

• Many homeowners have future equity in their homes that can be tapped.
• Homeowners can unlock some of this equity without additional debt.
• It works by investing in the value of the home with the homeowner.

Often, traditional lending products keep homeowners on the debt treadmill and may not be the best way for homeowners to pursue renovations, consolidate debt, or put their kids through college. With that being said, Unison lets homeowners unlock their home equity without taking on any additional debt, allowing these homeowners to achieve their goals in a way that makes them more financially stable.

On this episode of Weaver: Beyond the Numbers, hosts Rob Nowak, Real Estate Industry Tax Partner with Weaver, and Howard Altschuler, Partner-in-Charge of Real Estate Services, sat down with Theo Haugen, Director of Home Partnership at Unison to further explore what Unison can do for homeowners.

In a nutshell, Unison allows homeowners to tap into their home equity without any monthly payments or interest. Unison invests in the home, along with the homeowner, and shares the future gain or loss when the homeowner decides to sell.

“This is a two-part thing here,” Haugen said. “We are giving homeowners the opportunity to tap into their home equity without taking on additional debt. But on the flip side, we are giving institutional investors access to residential real estate as an asset class.”

Unison starts by doing an appraisal of the home to get a starting value. In the future, if the house sells for more, they share in that increase, but if it sells for less, they share in the decrease. They are risk-sharing with the homeowners.

Haugen explains that at Unison, the main goal is to help the homeowners achieve their financial goals, avoid more debt, make better financial decisions, and eventually sell their home for more money. And if they make more money, Unison makes more money, and the investors make more money.

Once funded, Unison can help people understand the options that are available to them and point them to resources when they experience financial instability, such as medical or credit card debt. As Haugen states, “we’re helping people succeed financially, which helps them maintain their home, pay their mortgage.”

“It’s not adversarial,” Haugen said. “We succeed when the homeowners succeed as well.”

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