EARLY STAGE INVESTMENT OPPORTUNITY IN
One-Stop Real Estate Solutions for Divorcing Couples
Purchase Price: $1.00 per Common Shares
Maximum Number of Common Shares Offered: 1,000,000
Minimum Investment: $5,000
Maximum Offering: $1,000,000
The Problem
One of the biggest issues people face when going through a divorce is what to do with the marital house.
Often one spouse, typically the wife (especially if there are minor children), wants to remain in the marital house for a certain period-of-time, such as when the youngest child graduates from high school.
Unfortunately, it is not always possible for the spouse who wants to remain in the house to do so. He or she may not be able to buy out the other spouse and/or refinance the mortgage.
In these cases, the spouses may have no choice but to sell the house which could result in additional disruption on top of the trauma of divorce.
Current Solutions
Typically, there are only three choices of what to do with the marital house in divorce:
- Have one spouse keep the house (typically the woman, especially if there are minor children) by buying the other spouse out, which is not often possible. In addition, since the spouse not keeping the house will usually want their name off the mortgage – this will almost always require a refinancing which might be very difficult if the spouse keeping the house doesn’t have a good credit score, sufficient qualified income and/or has a high debt-to-income ratio (DTI).
- Continue to jointly own the house after the divorce (usually a bad idea for many reasons)
- Sell the house and divide the proceeds after paying all expenses. This often results in additional disruption to the spouses and the children. The children will have to 1) deal with the emotional trauma of their parents divorcing and 2) if the house has to be sold, the children may need to change schools, move away from friends, etc.
Our Unique Solution
Step #1 would be to see if the spouse who wants to keep the house can 1) buy out the other spouse’s share of the equity in the house and 2) Refinance the mortgage so that the new mortgage is only in the name of the spouse who will remain in the house.
We can help with both of these issues.
Having worked since 2010 with hundreds of people around the country on the financial aspects of their divorce, we can work with the divorcing couple and their divorce attorneys to see if there are sufficient assets for one spouse to buy out the interest in the house from the other spouse.
If this is possible, then we can help that spouse refinance the house through our network network of mortgage experts most of whom are Certified Divorce Lending Professionals (CDLP™ designation) and/or have many years of experience dealing with divorcing couples and their mortgage financing/refinancing needs.
Unfortunately, sometimes it’s just not possible for the spouse who wants to remain in the house to do so. He or she may not be able to buy out the other spouse and/or refinance the mortgage.
If that’s the case, please see our unique solution below:
We offer a new alternative by purchasing the marital house with all cash from the divorcing parties and leasing it back (sale-leaseback) to the spouse who wants to remain in the house for a lease term of approximately 3 – 5 years, although it could be longer or shorter.
At the end of the lease term, we will sell or re-lease the property “as-is”, renovate and sell or renovate and re-lease the property depending on our capital needs at that time and the-then market conditions
If for whatever reason the Sale-Leaseback doesn’t work, then we can through our real estate brokerage subsidiary, Next Act Realty, LLC, help the divorcing couple sell their house through our nationwide network of divorce real estate experts, most of whom have specialized training in the unique financial, legal and tax aspects of selling real estate in the context of divorce and/or have many years of experience helping divorcing couples sell their marital house. We will earn a referral fee on those sales.
Why you may want to invest in us now…
According to Real Assets Adviser, 11/1/20, “Based on current trends, the single-family rental market will likely be undersupplied over the next 10 years, despite the increased attention the segment is currently receiving”.
Some examples:
- Brookfield Asset Management Inc. “Bets on Single-Family Rentals with $300 Million Fund” – Bloomberg, 7/21/20
- JP Morgan Chase & Co. expanded a $625 million joint venture with landlord American Homes 4 Rent to develop 2500 single-family rental homes in high-growth markets in the U.S. West and Southeast – Bloomberg, 5/18/20
- FYI, American Homes 4 Rent owns “53,000 suburban houses in 22 states and collects about $1 billion in annual rent from tenants…” – Wall Street Journal, 7/11/20
In addition:
- With recent income and credit tightening by lenders due to Covid 19, mortgage financing and refinancings have become much more difficult, making our service extremely timely. See related articles here and here.
- Our Founder/CEO has 40+ years combined experience in real estate and divorce financial issues.
- Several top divorce attorneys and other divorce professionals around the country have already indicated a preliminary interest in referring their clients to us, when appropriate (see below slideshow of attorney letters).
- The market of divorcing couples who own their home is a huge, multi-billion untapped opportunity.
- We should earn significant referral fees on those houses we don’t buy but refer to real estate brokers to sell.
Feedback From Divorce Attorneys
“It sounds (reads) like an exciting solution for many divorcing couples and, in particular, in instances when one or both parties want to keep the family residence for use by one party and the children for a certain period of time.”
–Laura A. Wasser, Divorce Attorney to the Stars, including Stevie Wonder, Maria Shriver, Heidi Klum, Angelina Jolie, Christina Aguilera, Mariah Carey, Britney Spears and many others.
