Creates an installment sale, where a Buyer gets all the benefits and responsibilities of ownership but does not get title until he has fulfilled the terms of an installment sale contract drawn in escrow.
Typically, this involves new financing to retire the old Seller debt. He is referred to as a “beneficial owner.” When the contract is completed, he obtains title.
The modification of the installment sale process (escrow, title, etc.) makes the approach superior to other “creative” solutions (lease option, rent-to own, etc.) for a home Buyer with “issues.” While ownership is conditional (new loan) it is immediate.
The Buyer and Seller negotiate terms and conditions. It may include many non-standard features. For example, the Buyer may borrow funds, stage the down payment, etc.
Covest teams with deeply knowledgeable escrow specialists to complete a transaction.
One of the principal benefits of equity sharing or “co-vesting” is its ability to be modified to adapt to almost any situation.
Was developed to assist the student debt crisis using the historical appreciation of real estate as the means to pay off the debt and provide a modicum of capital to a graduate. Through re-structuring, the debt gets converted into a secured loan on the property and combines with fast loan amortization to provide capital to the student after the Investor receives the desired return REGARDLESS of whether the property appreciates or not. Covest has held the solution at bay pending the end of the Covid 19 project.
There are many programs aimed at relieving the suffering of veterans. None, however, have taken the approach of home ownership by combining a veteran with an investor. It would seem 3 or 4 different modification models could be implemented into the housing. Using a leveraged approach with an investor and conventional lender would enable many more veterans to be rewarded for their service.
WE SEEK ONE THING – A WIN-WIN FOR ALL!!