We take our obligation to our customers very seriously. In fact, it is central to our operating ethos. We only partner with companies that share our values, such as integrity, gender pay equity, DEI, ESG, a demonstrated commitment to leveling the playing field and empowering BIPOC communities. In our view, only through teamwork with likeminded companies can we scale our mission of closing the wealth gap and helping every homeowner to achieve the American dream of prosperity. Our partners also turn to us because we are the first fully automated platform for processing HEA and mortgage applications.
HEAs are compelling alternatives to construction and bridge loans for active, “buy-to-sell” real estate investors. For traditional rental property investors, HEAs can be an attractive and tax-friendly equity extraction or diversification tool.
As of May 2022, real estate values in the Case Shiller top 20 metros are verging on unaffordable to new buyers. On the other hand, the incredible appreciation has created incremental trillions in home equity wealth for existing homeowners, which is a housing market risk buffer that didn’t exist in 2006 for example. It’s our thesis that house price appreciation will cool to trend, which is 2% to 4% annually. That would give wages a chance to catch up, make houses more affordable for more people, and provide HEA institutional investors with risk adjusted returns much greater than owning entire rental houses or investing in mortgage debt. On the other hand, even if house prices were to decline, HEAs have built in downside protection for institutional investors, wherein a home would have to lose over 25% of its value before putting investor capital at risk. If house prices lose 25%, we will all have greater things to worry about than HEA investors.