How an HEI Works

Get cash today for a share of your home's future value.

No PaymentsNo monthly payments, ever. Just one payment at the end, when you sell or buy the investor out.

No DebtIt's an investment in your home, not a loan. No balance to carry and no interest building up.

No ClockNo deadline and no forced sale. It ends when you choose to sell, refinance, or buy the investor out.

Let's run the numbers on your home.

Address
Value
Mortgage
Pre-qual

Wall Street investor

Up to 22.5%

of the home's value, paid whenever they sell

How the deal is structuredThey receive $100,000 with no monthly payments and no term.Investor receives up to a 22.5% equity share and waits until they sell.

Cash to homeowners$100,000in hand today

÷

Value of the home$1,000,000Their home today

=

Share of home value10%$100,000 of $1,000,000

×

Multiplier2.25up to $2.25 for every $1

=

Maximum investor's share22.5%of the home's value at settlement

Scenario 1 · They hold 10 years

We're selling the house 10 years later. What's our payoff?

Next to a home equity loan

Couldn't we just take a home equity loan?

Your cost has a ceiling.

Scenario 3 · They hold 30 years

And if they never move?

The Payoff RuleIt’s always the lesser of the equity share or the annualized cost cap.

Home value at year 10$1,343,916

or

×Investor's equity share22.5%

=They pay the investor$302,381

Annualized cost11.7%

No monthly payments. A $100,000 home equity loan at 8.50% would run $769 a month. Here, that stays in their budget until they sell.

The longer they stay, the lower the yearly cost: the cap stops mattering and the payoff simply follows the home's value.

Homes go up or down by +4.7% a year About the U.S. average since 2000 (Case-Shiller)

They sell after 12 months

They settle in year 1

Cash today $100,000

The loan costs less, if they can carry the payment.

Monthly cash flow+$769a month stays in their budget

Home equity loan rate 8.50%

The loan is a 30-year fixed second mortgage at the rate a broker would quote with standard compensation (2 points) built into the price. Rates move daily: set it to today's quote for this client. The investment's cost assumes homes go up 4.7% a year.

Next steps

Start the file.

1Estimate
2Application
3Documents

1

Send the estimate

Email opens a draft in your mail app with the numbers filled in. Attach the PDF it downloads.

Prepared for

Homeowner email

2

CHEIFS application

The homeowner fills it in and signs on their phone, or you start it with them now. The address, owners, loans and amount are already filled in.

3

Collect the documents

Photos or PDFs. The list follows this file: an ID for each owner and a statement for each loan on record.

From the homeowner

Uploads here stay on this screen for now. The full file tracks each document through review; credit (with OFAC), the appraisal and title are ordered there, in Processing.

The full file runs the rest: deadlines and notices, third-party orders, document review, and Cornerstone's decision and conditions.