Covestor

The Covestor is able to achieve a minority interest in ownership immediately by investing an agreed-upon amount through escrow. And, depending on the Agreement, the total of the agreed investment may occur over a designated period. The interest is recorded. The Covestor may achieve majority ownership when the Capital Investor’s interest is purchased at terms contained in the Agreement.

Tax benefits from interest on the loan and real estate taxes in the Agreement are awarded to the Covestor. After-tax payments may be less than rent. In addition, a Covestor may be awarded some or all of the equity build up occasioned by a decline in the loan amount over the term of the Agreement.

Sometimes, the Covestor’s cash purchase is “staged” over a period of time that is agreed to. The Covestor does not participate in the appreciation of the property until his minority interest is at 49%.

Just because a Covestor will not be qualifying for a loan, a FICO score is still important. Covest Properties hires outsiders to perform common-sense underwriting for the that is more detailed than a FICO score. Covest Properties needs this information to make a recommendation to the Capital Investor who will have the final say.

After the achievement of parity with the Capital Investor, the equity of the Covestor will continue to grow and that growth may contribute to the purchase of the Capital Investor’s interest without the requirement for additional funds. Meanwhile, the Covestor enjoys all the benefits of ownership denied to renters – privacy, equity build up, tax advantages, appreciation, stability.

Alternatively, the Covestor may elect NOT to purchase 100% and allow the Capital Investor to re-purchase the position at a price prevailing at the termination. Or, both Parties could elect to sell. Finally, the Parties could elect to re-finance and continue the relationship.

Benefits of Covest Properties Program

A great house, good schools for your children, neighbors that you can relate to, with close proximity to the things important to you and your family, a sense of accomplishment that only home ownership can provide and investors that want you to stay in the property. If you qualify, your life may be changed – forever.