What Company Is Offering:
Home Equity Share is the online marketplace for real estate co-ownership. We help home buyers overcome the high price of real estate by matching them with investors, allowing both parties to co-own property and enjoy the benefits.
How It Works:
Use Home Equity Share to find a real-estate partner, calculate your profit potential, and complete the Equity Sharing Agreement, all for free. At HomeEquityShare.com, a Web site that matches prospective home buyers with real-estate investors, individuals making successful connections receive a free equity-share agreement.
How Equity Sharing Works:
In equity-sharing, the occupant is required by the Internal Revenue Service to pay rent to the investor for the portion of the property that the investor owns. The amount depends first on what the property could rent for in the open market. Say the fair-market rental value is $2,000 and the investor's ownership stake is 20%. That means $400 a month is owed to the investor.
Then, if the investor pays for expenses such as insurance, maintenance, association dues and property taxes, the rent can just be considered reimbursement for those costs.
The investor can deduct those expenses from his or her taxable income in an amount equal to—and in some cases exceeding—the rental income. If the deductible expenses, which are considered "passive" investment losses, add up to more than the rent, the excess may be carried over to future years or taken as a deduction against other passive investment gains such as those arising from other rental income or the eventual sale of the property.
The success of co-ownership arrangements hinges on having a well-crafted equity-sharing .
More at:http://www.homeequityshare.com/
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