COVEST PROPERTIES. Inc. is a real estate Brokerage headquartered in San Marcos, Ca. Its principal activity provides multiple solutions for buyers desiring to own a home but unable to qualify for a conventional loan.
One solution is a purchase using a Joint Venture named “Equity Sharing” or co-vesting. According to a recent Harvard study, over 250,000 completed transactions since 2004 with over 5,000 in California and several by Covest. The study opined that joint venture transactions are may be the wave of the future in the U.S. as they are in New Zealand, the UK and Australia.
Joint ventures have been and continue to be used in commercial real estate – joint ownership of a property with rights and benefits shared under terms of a negotiated agreement. Its use in residential real estate has been characterized in the press as “win-win”. One of its principal benefits is its flexibility to adapt to almost any situation.
Covest employs a joint venture solution called “OurHomePath” that changes the Landlord / Tenant dynamic by aligning goals with tenant minority ownership. It eliminates most or all the Landlord issues – monthly costs, turnover, confrontation. The Tenant Investor enjoys appreciation, tax benefits, certainty of costs, life stability and freedom.
Landlords are fleeing the rental situation because of increasing costs, legal incursions and poor ROI. Tenant Investors are everywhere –1099 workers, to professionals, to recent divorcees.
The Student Debt crisis is an additional target for Covest using a joint venture solution.
“Shark Tank” star Mark Cuban opined that the student debt crisis could only be solved by using fresh thinking and creating wealth through real estate or the stock market. Society would win.
Covest Properties has developed “Gradhouse4.org” – a 501c3 entity – as a solution. Through a wholly owned subsidiary, Danali Investments, it provides aggregation services to GRADHOUSE by assembling the components necessary for a purchase -real estate agencies, lenders, title companies, insurance companies and others. Danali pays Gradhouse costs and provides fees to be paid to a newly formed National Endowment for Student Debt.
Each transaction requires a Grad, an Investor and the Endowment. The Investor would buy a property, qualify for a loan unique to the Program, add a Grad to title and, under an agreement, share the benefits. Existing student debt would be replaced with unsecured debt at significantly lower payments to the charitable institution at the time of purchase and forgiven per schedule.
The benefits go beyond the Parties to society including marriage, investing and family.
Covest continues to explore other opportunities where a joint venture could solve a housing problem including homes for veterans and other charitable groups,
A BEGINNING AND A WIN – WIN FOR ALL!!