Future Equity Agreement

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Protecting Property Owner Equity

Can I loose my equity?

Future Equity Agreement is designed to protect a property owner equity. It allows property owner to share only up to 50% of a future equity above a minimum future price.

If a property owner owes any money on a Future Equity Agreement at the end of the agreement, property owner always has a sufficient equity to cover the payment.

Do you have an example?

For example, lets take the future property value is $1,200,000 and the Future Equity Agreement with a future minimum property value is $1,000,000 and 50% share. In this case the difference between the actual value and minimum property value is $200,000. When Future Equity Agreement ends the property owner payment is 50% of $200,000 which is $100,000, leaving a property owner with $100,000 of the equity.

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