Many Landlords fail to address the impact of negative cash flow and rarely compute their break-even when calculating their return. Investments that require constant and regular contributions of cash are usually shunned.
When negative cash is combined with the size and frequency of tenant problems, repairs, emergencies, and maintenance, investing in single family residential homes should be treated as a bad hobby or avoided completely. Many “investments” are leftovers from their former residence.
EQUITY SHARING ELIMINATES THE PROBLEMS OF OWNERSHIP for Landlords and new Investors (“Capital Investor”) while creating the path to home ownership of Buyers with “Challenges” (“Covestor”). Equity Sharing eliminates the weaknesses and strengthens the capabilities of each of these participants.
This new relationship known as “Equity Sharing” has a unique operating Agreement that is constructed by the Parties themselves. IT IS NOT A PRE-DETERMINED CONTRACT. It is anticipatory in nature and is the “go to” document for relationship issues. It ends any negative cash flow or “occupancy issues” for the Capital Investor while providing on-site management, tax benefits and control.
The Covestor acquires a minority interest in the equity in the property, tax benefits, appreciation, and dignity. THE COVESTOR INTEREST IS CONDITIONAL.