The sale-leaseback category has picked up steam as of late, with several new players emerging with a promise to help homeowners access their equity without the need to move.
Now, a new company has emerged to help Phoenix-area homeowners do just that.
Launched just last week by two veteran REIT execs, Sparrow will purchase your home and lease the property back to you for one to 10 years.
The company will present potential customers with an offer for the home purchase and a quote for monthly rent upfront, closing within 30 days. It will also maintain the home and pay insurance, property taxes and HOA fees.
Sparrow said the sale-leaseback option provides an alternative means of equity access to homeowners who don’t wish to relocate, offering a solution that is less restrictive than home equity loans and reverse mortgages.
Co-founders Patrick Whelan and Jami Schulman are seasoned pros in the single-family rental market, having acquired and managed more than 75,000 apartment homes and single-family rentals throughout the U.S.
"Sparrow's Sale and Lease Back program allows homeowners to receive their equity in order to pay off existing debts, student loans, medical costs, fund tuition, retirement or use for whatever purpose they choose," said Whelan. "We are providing an opportunity for sellers to stay in their homes, enjoy a maintenance-free lifestyle and no longer have the ongoing costs of homeownership."
"You don't have to own your home to call it home," Schulman added. "For many residents, remaining in their homes and receiving their equity is more of a priority than homeownership."