Private investors for equity co-investment
I've got a $3.3M SFH, currently a STR that does very well. However, I've got *a lot* of equity tied up in it that I'd like to deploy elsewhere. $1.5M mortgage, 30-year-fixed at 2.5% so I really do not want to sell or refi.
I've looked at equity co-investment outfits like Point and Hometap, but the deal terms seem atrocious. Hometap claims "no interest" but if you look at cash now vs. percent equity they'd take in a future sale, the implied interest rate is something like 25%.
Are there private investors out there who are interested in doing similar deals with better terms? Also open to hearing other ideas for this situation.
Most Popular Reply
Hi Craig,
Have you considered putting a second position mortgage on it? That way you could get a loan on it while keeping the first. Rates will be higher than refinancing, but if you insist on keeping the first, this is a good strategy.