@@sarahgoodhart5644 Because you lose a lot of control over your property, and paying back $100K to borrow 25K seems like a pretty bad deal - I was desperate and got caught. When you go to sell, they can block the sale if they don't like the price and screw things up that way too. Plus, I wasn't married at the time, and now I am; if I die, she has 6 months to vacate the premises before they foreclose, so I can't even really leave her the home. Biggest financial mistake I ever made.
@@sarahgoodhart5644because you are getting robbed. Your home is worth $400,000 now and you take out 10% equity which is $40,000. Then in 10 years when you sell your house at $450,000 then you have to pay 22% back to the lender. That is $99,000! So basically you borrow $40k and you have to pay back $99k in the future
Key is, you MUST pay back in 10 years, so you MUST sell unless you have the money(probably need $150,000-$224,000) to pay the company 32% of it’s SOLD and probably INCREASED value, say $700,000 (up from $500,000). So the company gets 124% of their investment! ($224,000). Holy s$$t! The same scenario with an 8% HELOC would only cost you $42,846.76 at the end of 10 years!
I reached out to a company like this yesterday. Guy went over everything with me. This is a somewhat good program if you don’t need a lot of money and don’t have means to immediately pay it back. But if you need a lot more money, then you are almost giving away 50% equity when the house sells or at the end of your loan term.
32% of future equity? That’s asking a lot. The high interest rates we have are the only reason to use this product. I would rather wait instead of giving up potentially 32% of your own ass
I understand this enough, to know that they’re not giving you anything that they are not getting a ridiculous return on. They give you pennies now when you give them dollars later.
Stay away from these programs. This dude is a scam artist, and he knows it. Sorry, but having an English accent doesn't automatically make you trustworthy. I have been in mortgages for 25 years and would never recommend these. Shame on this guy for being such an advocate for this program.
I was sent an agreement and the term for mine (apparently to be paid back is 30 years) I won;t be around then so I could care less about my property then.
@@jamesmc1016Sure, if you're in a rare position of "devil may care" because you have no beneficiaries or couldn't care less about what happens after you pass, then yes, this product could possibly suit you. But this guy isn't necessarily looking for you. He's looking for people in a place of desperation and/or ignorance.
Run as fast as you can from these types of deals.
Please elaborate on why.
@@sarahgoodhart5644 Because you lose a lot of control over your property, and paying back $100K to borrow 25K seems like a pretty bad deal - I was desperate and got caught. When you go to sell, they can block the sale if they don't like the price and screw things up that way too. Plus, I wasn't married at the time, and now I am; if I die, she has 6 months to vacate the premises before they foreclose, so I can't even really leave her the home.
Biggest financial mistake I ever made.
Dude jumped in too quick
Reason?
@@sarahgoodhart5644because you are getting robbed. Your home is worth $400,000 now and you take out 10% equity which is $40,000. Then in 10 years when you sell your house at $450,000 then you have to pay 22% back to the lender. That is $99,000! So basically you borrow $40k and you have to pay back $99k in the future
Key is, you MUST pay back in 10 years, so you MUST sell unless you have the money(probably need $150,000-$224,000) to pay the company 32% of it’s SOLD and probably INCREASED value, say $700,000 (up from $500,000). So the company gets 124% of their investment! ($224,000). Holy s$$t! The same scenario with an 8% HELOC would only cost you $42,846.76 at the end of 10 years!
My agreement is for 30 years, not 10. Good chance I will not be around then
I reached out to a company like this yesterday. Guy went over everything with me. This is a somewhat good program if you don’t need a lot of money and don’t have means to immediately pay it back. But if you need a lot more money, then you are almost giving away 50% equity when the house sells or at the end of your loan term.
What happens if you’re upside down when you “sell”?
This guy has evil Bond villain energy 😂 16% payback per 10% borrowed seems lopsided.
Absolutely. He’s the worst guy to represent this fantasy. Red flags everywhere
And that's future value which usually goes up
Sounds like another way to create another housing bubble.
32% of future equity? That’s asking a lot. The high interest rates we have are the only reason to use this product. I would rather wait instead of giving up potentially 32% of your own ass
I understand this enough, to know that they’re not giving you anything that they are not getting a ridiculous return on.
They give you pennies now when you give them dollars later.
It sounds as bad as it is... 😲
catch at 1:31
Stay away from these programs. This dude is a scam artist, and he knows it. Sorry, but having an English accent doesn't automatically make you trustworthy. I have been in mortgages for 25 years and would never recommend these. Shame on this guy for being such an advocate for this program.
I was sent an agreement and the term for mine (apparently to be paid back is 30 years) I won;t be around then so I could care less about my property then.
@@jamesmc1016Sure, if you're in a rare position of "devil may care" because you have no beneficiaries or couldn't care less about what happens after you pass, then yes, this product could possibly suit you. But this guy isn't necessarily looking for you. He's looking for people in a place of desperation and/or ignorance.
legal robbery
The tax efficiency is brilliant…this def works for some people