RealEstateRaves

Here’s a new concept….at least to me.  The Rex Agreement.  It’s not a “loan”, but a real estate investment agreement in the form of a purchase option.  It gives homeowners a portion of their home equity in cash today in exchange for the right of REX & Co. to share in a specified percentage of the future increase or decrease in their home s value.

For the right to share in an agreed upon percentage of the future change in value of the home, REX & Co. pays the homeowner what is called an Option Exercise Price equal to the current value of the home multiplied by the percentage of the future change in value granted to REX & Co.  If the home increases in value, REX & Co. shares in the gain. If the home declines in value, REX & Co. shares in the loss. Simply stated, there is nothing like the REX Agreement right now in home finance.

It’s just another way to finance your home today to pull out much needed cash that you otherwise might not be able to obtain.  For that option you sell a portion of your current and future equity to the Rex Company and they participate as a partner in your house and receive a portion of the net proceeds when your house sells or receives a portion of the loss should it sell for less than expected.  This new and very creative approach to “financing” is not for everyone but definately worth checking out.  It can work for anyone of the following reasons some or all of us face from time to time:

1.  if you are considering refinancing to reduce debt, pay off all or a portion of the mortgage, credit cards, or reduce monthly payments.

2.  homeowners considering other debt-based financing alternatives to get cash out of their home

3.  homeowners considering a reverse mortgage

4.  homeowners considering an equity loan to finance a child’s education

5.  homeowners with more than 50% of their net worth locked in their home equity

6.  first time home buyers who are able to put down 10-15% down payment on a home

7.  move-up homeowners who want to increase their down payment to reduce debt and monthly payments

8.  move-up homeowners who want to buy more house at the same out of pocket monthly payment

check it out at www.rexagreement.com

Joe Parsons

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