The money hidden in your assets
Toni and David Bell found a new way to raise funds to eliminate debt and renovate their home last year.
They signed a deal with Point Digital Finance Inc., a startup that buys equity in people’s homes for cash. The Bells got $ 170,000 for selling a small portion of the equity in their Campbell, Calif., Point home.
Point is one of the many companies offering new ways for people to tap into the value of a home, car, or even a job they haven’t yet been paid for.
It’s an extension of a trend that started with companies like Airbnb and Uber Technologies, providing consumers with a way to make money by renting out their homes or driving people in their cars. Now, thanks in part to advances in software’s ability to quickly and accurately value assets, consumers have even more ways to extract cash from their assets, thanks to equity trades like Point’s and new types of loans. asset-backed.
Point Digital Finance, which operates in California, Oregon, and Washington, typically purchases a stake of about 10% of a home’s current value in exchange for cash. In the case of the Bells, for example, the house was valued at $ 1.7 million, hence the payment of $ 170,000 to them.