Close on your new home without the complexity and costs of traditional banks
Mortgage: a legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.
Have you found your dream home? Are you looking for financing and not liking the options you’ve been offered from the traditional banks? EquityDoor gives you another option and you set the terms. Share equity with the crowd and buy it back with your monthly “mortgage” payments.
- Closing on Your Mortgage: Project owners shares equity in their home with the crowd in exchange for funding an amortized financial equity model. In a traditional mortgage, there are principal and interest payments made each month and the bank returns equity back to the borrower (equal the value of the monthly principal payment) and keeps the interest payment as their return on investment for the loan. Similar to a traditional mortgage, EquityDoor investors have the potential to receive a return on investment if regular principal and interest payments are made by the project owner. Each payment in EquityDoor would result in equity being traded back to the project owner (from the crowd) equal to the principal payment, and the interest payment would operate as the crowd’s return on investment.
Note on amortized equities: Amortization refers to the process of paying off a debt (often from a loan or mortgage) over time through regular payments. In amortized equity, the payments would potentially be paying a return to the investors via the principal and interest payments if regular payments are made. The project owner would make principal and interest payments to the investors. After each payment the principal value paid would be added back to the project owner’s equity level and decreased from the investors’ equity level of the corporation. In an EquityDoor mortgage model the project owner’s equity level is the paid principal balance and the investors’ equity is the interest balance.