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Home Equity Contracts

Home Equity Contracts

Home Equity Contracts: Innovative equity financing solution for the $32 Trillion Dollar U.S. Residential Market

Home Equity Contracts (HECs) provide a fresh approach to financing in the $32 trillion U.S. residential market, allowing homeowners to monetize their home equity without incurring traditional debt. These contracts enable homeowners to exchange a share of their home's equity for upfront cash, offering an appealing alternative for those who are house rich but cash poor. This method does not require homeowners to sell their property or increase their debt burden.

The market for Home Equity Contracts is expanding, supported by a shift away from traditional Home Equity Lines of Credit (HELOCs) and a growing demand for non-debt financial solutions. Already available in 20 states and expected to reach more, HECs are facilitated by sophisticated data analytics and software platforms that streamline the origination process. As they become more recognized and accessible, HECs are poised to transform into a significant asset class, promising valuable investment opportunities and providing homeowners with innovative ways to leverage their property's value.

Access the full report to explore the transformative potential of Home Equity Contracts in the U.S. residential market. Dive deeper into how these innovative financial solutions provide homeowners with the opportunity to monetize their home equity without the drawbacks of traditional debt. Learn about the benefits for investors, including downside protection and the possibility for substantial returns.

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Table of Contents

  • Introduction to Home Equity Contracts

  • Executive Summary - Home Equity Contracts

  • The Market Opportunity

  • How Do Home Equity Contracts Work?

  • U.S. Residential Real Estate – Historical Home Price Data

  • Home Equity Contracts – A New Asset Class

  • Kingsbridge Sees Many Attractive Investment Attributes In Home Equity Contracts

Thanks to our Contributor

Kingsbridge Wealth Management

Kingsbridge Wealth Management, Inc. is a registered investment adviser founded in 2008 that manages the Kingsbridge Alternative Strategies Fund, LP. The Kingsbridge Alternative Strategies Fund, LP, invests in Home Equity Contracts in the U.S. residential real estate market.


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