EquityKey

About EquityKey

EquityKey operated in the real estate investment services sector, presenting a distinct financial product for homeowners. The company was founded on October 29, 2006, with Jeff Nash as a co-founder and Managing Director. It was established as a Limited Liability Company (LLC) and later incorporated on September 18, 2013. The firm's business centered around a patented "EquityKey Rights Agreement," which allowed homeowners to receive an immediate cash payment in exchange for a percentage of their home's future appreciation. This model was not a loan, so it involved no monthly payments or interest, targeting homeowners who preferred not to take on debt but were willing to share potential future gains.

The company's primary clients were homeowners with significant equity in their properties, often baby boomers and seniors looking to liquefy a portion of their home's value for various financial planning needs. This included debt reduction, financing property improvements, or funding retirement and healthcare costs. In return for a cash sum, typically between 6% and 17.25% of the home's current value, the homeowner would agree to share 30% to 75% of the future increase in the property's value with EquityKey. The appreciation was measured using the S&P Case-Shiller Home Price Index, an objective third-party benchmark. The agreement was secured with a lien on the property title and typically had a term of seven to ten years.

The business model created a new avenue for capital markets, connecting long-term institutional investors, like pension and endowment funds, with the single-family home market. EquityKey only profited if the home's value increased, aligning its interests with those of the homeowner. After initially halting operations in November 2008 due to the credit crisis, the original founders repurchased the company from KBC Bank in March 2009 with plans to secure new funding. The company revamped its product and was back online by March 2014, expanding its services to states like California, Florida, New York, and others. However, as of June 2017, it was confirmed that EquityKey had ceased operations.