Investors will supplement down payments in exchange for a share of future profits. Would you make a deal like that?
Are there any circumstances under which homebuyers would be willing to share in the upside of home price appreciation? Would you sell an option worth 35% of the upside in exchange for half (10%) of your down payment? You wouldn't have any payments like a second mortgage, and if you sell for a loss, the investor shares in the losses with you. When you reflect on it, the main reason you wouldn't participate is because you believed you will make a fortune on appreciation, and you don't want to share it. Strong arguments can be made for a ten to twenty year bear market in real estate. We are at the bottom of the interest rate cycle, and for the next thirty[READ MORE]