Balance

Balance Homes, founded in 2021 by Judd Schoenholtz and Aaron LaRue, operates as a real estate technology company with a co-investment model designed to assist homeowners facing financial difficulties. The company positions itself as an alternative to traditional mortgage lending, targeting individuals who are struggling to afford homeownership, are in forbearance, or face foreclosure.

The business model centers on a shared ownership structure. Balance Homes co-invests in a property by paying off the homeowner's existing mortgage and other eligible debts in full. In exchange, the company takes a portion of the home's equity. This approach allows homeowners to convert their equity into cash without taking on additional debt. Clients then make fixed monthly payments to Balance, which are often lower than their previous mortgage and debt payments. Homeowners retain control of their property and can choose to repurchase the equity from Balance through refinancing or sell the home at any time. The company's revenue is generated through a one-time shared ownership entry fee, typically 3% of the home's value, which can be paid from the home's equity, and a fixed monthly fee. As a co-investor, Balance also shares in the home's appreciation or depreciation.

Co-founder Judd Schoenholtz, before establishing Balance Homes, co-founded and was the CEO of Open Listings, an online real estate brokerage that was acquired by Opendoor. Co-founder Aaron LaRue has a background in the financial technology sector, having held roles at companies like Zillow, SoFi, and Clara Lending, where he focused on platform and product development. A significant milestone for the company occurred in December 2023, when it was acquired by EasyKnock, a residential sale-leaseback platform. Following the acquisition, Schoenholtz and LaRue assumed executive roles at EasyKnock as Chief Revenue Officer and Chief Technology Officer, respectively, to integrate the Balance Homes product and technology into EasyKnock's platform.

Keywords: home equity co-investment, mortgage alternative, foreclosure prevention, shared homeownership, debt consolidation, home equity sharing, refinance alternative, real estate technology, proptech, financial flexibility, home equity access, co-ownership program, low credit mortgage solutions, forbearance relief, home equity investment, property technology, home co-ownership, mortgage debt relief, shared equity, residential finance