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The home Sarah wants to purchase has a risk adjusted value of $450,000*.
She can afford to put down $50,000 as a down payment. Point puts in another $50,000 to increase her down payment to 20% of the sale price.
Four years later, Sarah decides to sell her home for $375,000.
Sarah’s home value has declined $75,000 below the risk adjusted value.
Sarah keeps 92% of the sale price, around $344,600.
Point gets 8% of the sale price, around $30,400.
This is calculated by adding the original investment of $50,000 minus the $19,600 that Point shares in the home's depreciation.
The home Sarah wants to purchase has a risk adjusted value of $450,000*.
She can afford to put down $50,000 as a down payment. Point puts in another $50,000 to increase her down payment to 20% of the sale price.
Four years of appreciation later, Sarah decides to sell her home for $573,800.
Sarah’s home value has appreciated $123,800 above the risk adjusted value.
Sarah keeps 86% of the sale price, around $491,500.
Point gets 14% of the sale price, around $82,300.
This is calculated by adding the original investment of $50,000 plus the $32,300 that Point shares in the home's appreciation
The home Sarah wants to purchase has a risk adjusted value of $450,000*.
She can afford to put down $50,000 as a down payment. Point puts in another $50,000 to increase her down payment to 20% of the sale price.
Four years of appreciation later, Sarah decides to sell her home for $626,500.
Sarah’s home value has appreciated $176,500 above the risk adjusted value.
Sarah keeps 85% of the sale, around $532,100.
Point gets 15% of the sale, around $94,400.
In this scenario, Sarah’s cost is capped with a time-based max amount due to the significant appreciation.
Every year, Insider surfaces 100 leaders across 10 industries who are driving unprecedented change and innovation. Lim, the CEO and cofounder of Point, wants to make it easier for people to tap into that wealth. Lim’s company, which he founded alongside Eoin Matthews in 2015, offers homeowners lump sums of cash in exchange for a stake in their home.
Historically, homeowners could only tap into the equity of their homes by taking out a home equity loan or refinancing. But a new category of startups has emerged in recent years to give homeowners more options to cash in on their homes in exchange for a share of the future value of their homes.
