Sell part of your property to Flexible. Get cash without debt and the burden of monthly payments. A popular alternative to obtaining a loan or selling the property.
The more cash you want, the greater the share of equity in your property Flexible will buy. If a co-owner wants to cash out, we buy 100% of their interest.
Flexible pays you cash, and is now a co-owner.
When you are ready to buy back Flexible’s ownership interest or sell the property, Flexible gets paid the agreed upon return or percentage of price appreciation.
Your property is worth $1,000,000 and you have a $200,000 loan outstanding, which means you have $800,000 of equity. Flexible agrees to purchase 25% of your equity for $200,000, and you agree to sell your property to Flexible in 5 years.
After closing
Flexible is now a passive co-owner.
Outcome
You sell. The sale proceeds are split: 75% to you, and 25% to Flexible.
This example is simplified to exclude details that vary by owner and transaction, including the impact of taxes, tax savings, and miscellaneous third-party transaction costs.
Every Flexible offer is custom-built to achieve owners’ goals. For Cash for Equity, here are the most important items to consider:
The amount of cash you get at closing, which is closely tied to the share of ownership you are selling to Flexible.
The date of a liquidation event for Flexible that completes the Cash for Equity arrangement. Most owners choose between 1 and 5 years.
Choose between two forms of Flexible’s equity participation: “preferred” or “limited”.
“Preferred” means you give Flexible a fixed return without participation in future appreciation. Whether the property value goes up or down, Flexible’s return is limited to a fixed rate. Flexible does not require monthly payments so the return can accrue until a later date.
“Limited” means Flexible owns a portion of the property without a stated fixed return—our share of potential benefits goes up when the value and cash flow increase, and goes down when it decreases, the same as it does for you.
Most owners who choose Cash for Equity want some combination of cash for other uses and less ownership exposure in the property.
Since most owners aren’t in the business of predicting future value or future cash flow, they choose a “limited” Flexible participation structure. If the property value or cash flow goes up, your share is lower than with a “preferred” structure. If the property value or cash flow goes down, you don’t have to worry about the fixed return becoming an increasingly burdensome obligation relative to what the property can support.
When you request an offer, we’ll share options so you can choose your desired combination of offer features and make an informed choice. We can include preapproval to make changes after reaching an agreement so you have flexibility as the future unfolds.
We can give you options to extend the repayment date, pay in installments, or bring on new financing options.
Our offers are customized to maximize the collective ownership group’s satisfaction. Flexible will ensure each co-owner receives the terms they want, whether it’s cashing out, remaining an owner, or both. You tell us if you want us to work with a single contact, the group, or individually with each co-owner.
Flexible will ensure our Cash for Equity agreement is structured in compliance with your loan agreement.
We’ll work with you to coordinate our onsite inspections and collect property information as part of our due diligence. If certain materials are not available or easily accessible, our team can help.