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HECMs vs. Equity-Sharing


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Could fractional real estate be the future for older homeowners looking to tap their equity?

If you stick around long enough in the mortgage business you’ll eventually see trends repeat themselves. No, we’re not talking about your bell-bottom jeans from 1978, but rather a return of the concept of equity sharing and fractional real estate. Twenty years ago when most were unaware of what a reverse mortgage even was, it wasn’t uncommon to find lower-income seniors with advertisements for equity-sharing or even such an arrangement in place.

One player in this emerging market that has garnered media interest is SmartRE- a blockchain-based platform that allows homeowners to sell a portion of their home equity to private buyers via secure online contracts. Their slogan is ingenious: Cash In & Stay In. One of their videos pitches SmartRE as the smart alternative to HELOCs and yes, even reverse mortgages.

A stable real estate market with modest appreciation is fertile ground for product innovation and investment. New players…



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