A startup company is looking to bypass securities laws by offering a new spin on real estate crowdfunding that aims to provide an alternative to reverse mortgages and home equity lines of credit (HELOCs).
Homeowners who want to tap into their home equity have a variety of options in which to do so, including reverse mortgages, HELOCs and cash-out refinancing.
Dwellxchange is touting a debt-free alternative to those methods by introducing a marketplace where homeowners can sell ownership interests in their properties to third-party investors, reports Inman News in a recent article.
The company hope to attract a range of homeowners, including distressed borrowers either in default or foreclosure who are seeking to retain their homes but cannot qualify for refinancing, HELOCs or reverse mortgages.
“The firm puts a new spin on real estate crowd funding,” the article states. “The startup is seeking to bypass security laws that have traditionally restricted real estate crowdfunders, and it remains to be seen how regulators will respond to the company’s business model.”
Read more at Inman News.
Written by Jason Oliva
