Real Estate

# New company provides 50% of downpayment for 30% of equity

• Last Updated:
• Mar 11th, 2019 5:31 pm
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Member
May 12, 2003
349 posts
GTA
Think you're reading this incorrectly. it's 30% of the increase in value of the house.

i.e. if the house appreciated by \$300k, you'd pay this company 30% of that...therefore \$90,000 plus the initial downpayment of \$100,000. Therefore total of \$190,000.

See attached image. In this scenario, your gain is \$229,000 over the 7 year period, and all you have to pay back to Lendl is \$180,455. Which is \$100,000 initial downpayment or "loan", plus 30/35% on the "INCREASE" in value of the property. 35% x 229,000 = 80,455 + 100,000 = \$180,455

Doesn't appear to be on ENTIRE value of the house as some people have stated, just the incremental.

If so, I'd say this is a perfect scenario. You're sharing in risk and opportunity.

licenced wrote: No. It's 30% of the value of the house.

The default calculation shows they will match the buyer's 10% downpayment for a total downpayment of 20% and they'll need to stake a claim for 30% of the property.

The buyer meanwhile would need to borrow 80% as a mortgage which isn't going to happen because

lendl's share = 30%
mortgage = 80%
Total claims against the property = 120%.
Images
Deal Fanatic
Jul 3, 2011
5768 posts
Thornhill
I refer you back to the graphic in the 2nd post which specifically shows 30% of the value and when I did my check of their calculation, it was 30% of value and not any amount of equity .

So I base my position on that and not on the way they're currently representing it.

It seems they've now morphed into something different, maybe too much negative online press.
ssj4_ootaku1 wrote: Think you're reading this incorrectly. it's 30% of the increase in value of the house.
May 16, 2017
1507 posts
licenced wrote: I refer you back to the graphic in the 2nd post which specifically shows 30% of the value and when I did my check of their calculation, it was 30% of value and not any amount of equity .

So I base my position on that and not on the way they're currently representing it.

It seems they've now morphed into something different, maybe too much negative online press.
It now says "in return for 35% <of the> appreciation in the future value of your home". (I fixed the sentence structure for them)

"Option #1
You have the freedom of selling your property and paying lendl 35% of the appreciation plus the original downpayment provided by lendl.

Option #2
Purchase lendl's equity
If you absolutely love your property and would like to stick around a little while longer, you can use equity in the home or any other means to pay out lendl's 35% of the appreciation plus the original downpayment provided by lendl"

So, they are basically assured to get their original "investment" back even at 0 appreciation and gambling on the average being a lot more than that.

It seems like their first version was put together before the creators had a chance to learn arithmetic and basic financing terminology.
[OP]
Sr. Member
Jul 10, 2018
513 posts
I wonder where they're getting their funding from, and who would provide the mortgage.
Sr. Member
Mar 13, 2017
984 posts
licenced wrote: I refer you back to the graphic in the 2nd post which specifically shows 30% of the value and when I did my check of their calculation, it was 30% of value and not any amount of equity .

So I base my position on that and not on the way they're currently representing it.

It seems they've now morphed into something different, maybe too much negative online press.
Can you find anything out there on them other than this thread? I can't ...

Columbia domain registered a few weeks back; Arizona addy for registration.

Nonetheless, here we are at page3 of the thread
Deal Fanatic
Dec 27, 2009
7107 posts
Victoria, BC
SKOMO85 wrote: Lots of math is needed to determine how badly the customer is getting raped on this deal. The question is what's worse, this or renting?
There is NOTHING wrong with renting. This on the other hand is a f'ing disaster.
Deal Fanatic
Jul 3, 2011
5768 posts
Thornhill
1cat2dogs wrote: Can you find anything out there on them other than this thread? I can't ...

Columbia domain registered a few weeks back; Arizona addy for registration.

Nonetheless, here we are at page3 of the thread
Why are you asking me if I can find anything else on them, I'm not your researcher.
Sr. Member
Mar 13, 2017
984 posts
licenced wrote: Why are you asking me if I can find anything else on them, I'm not your researcher.
Someone is rather sensitive

Simple question that was directly related to your suggestion that online pressure prompted whomever is behind this to alter their scheme. I agree with you !
Given that I couldn't find anything else other than this thread online about them, I asked if you did. If there is nothing else out there ... than whoever came up with this site is in probably in here with us !

[OP]
Sr. Member
Jul 10, 2018
513 posts