A private-equity group has a launched a new fund to help drive residential real estate purchases and assist home buyers after they purchase a home. The fund, Buyers Equity Fund, will share the financial potential of a home purchase with the homeowner by investing in the future value of the home.
In exchange for a percentage of the future value of the home, Buyers Equity Fund will provide home buyers with up to 15% of the home's purchase price in cash. The equity-sharing payment is not a loan or mortgage. There will be no monthly payments due, and no interest will be accrued, according to founder and CEO Theodore J. Wojitas.
"Our program is specifically designed for the home buyer to use the equity-sharing option payment for anything they need, including repayment of loans, higher education, medical expenses, taking a vacation or simply planning for a rainy day," Wojitas says. "By purchasing a home that has been pre-approved by our fund, buyers have the security of knowing that the property has been reviewed by outside experts who believe it to be a good long-term investment."
Buyers Equity Fund, which is expected to be fully operational by the fall, will review and pre-approve properties it believes will appreciate in value over time. The property must be pre-approved, and the participants must have closed on the purchase of their new home before entering into any agreements with Buyers Equity Fund. The fund says it is currently reviewing developers' and builders' inventory nationally to pre-approve property.
Headquartered in Chicago, Buyers Equity Fund is seeking properties nationwide to add to its pre-qualified property inventory, and the group is primarily focusing on opportunities arising from unsold inventory from developers, builders, short sellers, banks and real estate agents.
SOURCE: Buyers Equity Fund