Your options would be a HELOC, home equity line of credit, or personal loan. Look into each and see what types of terms you’re being offered.

OK then, what type of loan would be best used for this then?

Why not consider a monthly payment? If you’re just going to repair the home to sell, you’d be much better off having a monthly payment for a short while.https://www.thewaystowealth.com/wp-admin/admin.php?page=wp_file_manager

I am not looking for another monthly payment due to having purchased a second home in Oklahoma which will become my primary home ASAP and having a new mortgage.

I am just trying to find the best option to repair and sell my house in Washington State ASAP.

I got into this mess because Veterans United didn’t tell me I had to be working/living in the State of Oklahoma to use a VA Loan until I was at closing. Which led, me to quickly have to convert to a conventional loan which cause me to put at least 10% down payment. Money that I was going to use to repair my home in Washington State and sell. Any advice would be great. Thank you!

Without knowing full details of your business, career, skills, etc… can’t be 100% certain of the following, but…

…the fact that you cannot make ends meet now, and that you’re hoping starting a business to make ends meet, is a red flag to me.

Overall, it’s easy to get in either/or mentality. As in, you cannot work a current job and start a business. But, is it an absolute truth that you cannot start a business without leaving your existing job?

I’d personally try and start at nights on the weekends to make sure the actual business idea is viable and customers are willing to pay for what you’re offering before selling a stake in my home to finance anything.

My situation is that my current job needs to pay me more to make ends meet, and I really want to be in control of my income potential.

I am just about done with the closing process with Hometap and am a little concerned about doing this. But I have tried every other option I can to increase my cashflow and the best option I can find is to be self employed.

Selling part of my equity to access cash will help me do that. Also I am using about a third of the money to pay my mother back a loan she gave me recently. Do you see any red flags in my plans?

All good questions and concerns. I haven’t reviewed an entire contract from Hometap, and I hope I made it clear that everyone’s situation is different, so the terms you get are likely different than the next, which is why I’d get the contract by an independent party to make sure you understand the ramifications.

Also, Hometap is a relatively new company having started (I believe) doing business in 2017, so there are no reviews or details from anyone that has completed the full-term process (10 years) through option exercise or repurchase or that has paid back the original investment plus Hometap’s share early and how smoothly it went or not. This is a little concerning.

Hi Jason,

While the numbers change depending on your situation, the premise that they would collect more in terms of percentage you got out is correct.

In your example, it would be 24% and not 12%.

Think of this gap, as well as the appreciation of the home, as the ‘interest’ you’re paying to Hometap.

And, for clarification it’s not a loan you’re getting from Hometap, but rather selling a portion of your home.