Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/18/84; site ucla-cs.ARPA Path: utzoo!linus!philabs!cmcl2!seismo!harvard!talcott!panda!genrad!decvax!ittvax!dcdwest!sdcsvax!sdcrdcf!trwrb!cepu!ucla-cs!brett From: brett@ucla-cs.UUCP Newsgroups: net.invest Subject: Re: Equity Sharing... Advice needed.. Message-ID: <5279@ucla-cs.ARPA> Date: Wed, 8-May-85 15:43:48 EDT Article-I.D.: ucla-cs.5279 Posted: Wed May 8 15:43:48 1985 Date-Received: Sun, 12-May-85 01:27:37 EDT References: <159@mcc-db.UUCP> <2899@hplabsb.UUCP> Organization: UCLA Computer Science Department Lines: 45 > I have heard several ways of structuring equity sharing deals in real > estate. The most attractive and in my opinion the most equitable is what > I heard from a television program by Paul Simmon (I may be wrong about the > last name). He is an investor that works equity sharing deals exclusively. > > What I remember is: > > The investor puts down the down payment and gets to depreciate > the property. > > The person that lives in the house pays the payments and makes > all repairs and maintains the property. Since he is making the > payments the interest deduction is his. > > The deal can be written for a finite period of time or written > based on some other termination of a contract. > > The increase in equity is shared 50/50. This means when the > property is sold the resulting gain in property value is split. > The investor gets his down payment back and 50% of the gain in > the property value. The person that lives in the house gets > the amount he has paid off in the principle and the other 50% > of the appreciation in the property value. > What happens if I just want to live there for two years. Does that mean I'm just paying off interest and would only get the 50% gain in property value? How would we know what the property value is after 2 years. This sounds good for the average person who cant get a loan, but how many people could last enough time to be paying off principle on their loan? I would be intersted in comments from anyone who has further info. -- Brett Fleisch University of California Los Angeles 3804 Boelter Hall Los Angeles, CA 90024 Phone: (213) 825-2756, (213) 474-5317 brett@ucla-cs.ARPA or ...!{cepu, ihnp4, trwspp, ucbvax}!ucla-cs!brett -------------------------------------------------------------------------