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.
Get cash without dealing with a bank- Get cash quickly and easily without jumping through a bank’s hoops.
Skip the debt stress- No big loan balances, monthly payments, interest and origination costs, prepayment penalties, foreclosure risk, or lack of flexibility when dealing with banks.
Choose your repayment terms- Pay Flexible off on your timeline.
Possibility of higher costs- A loan may be cheaper than Cash for Equity after accounting for Flexible’s initial valuation or return requirement.
Possibility of a lower share of benefits- Cash for Equity lowers your equity exposure which means you are decreasing your share of future financial benefits of ownership.
Continued ownership risk- By not selling, you remain exposed to the risks of ownership.
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.
Flexible is now a passive co-owner.
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.
The valuation Flexible can offer is the result of working backward from our earnings target. Since we are a passive equity participant, our earnings are limited to our share of the benefits from a future liquidation event, and if applicable, a fixed return.
Here are the best ways to maximize our valuation:
Shorter repayment period: The shorter the arrangement, the less market risk Flexible assumes. We’ll share in the benefit of lower risk in the form of a higher upfront valuation.
Promising business plan: If you plan on making improvements to your property, and we benefit from the potential of appreciation and higher earnings, Flexible will be willing to give you a higher upfront valuation.
Flexible reviews recent comparable sales, then makes adjustments based on your property’s unique features.
Our offer pricing and future plans are 100% transparent. You'll see the data used to determine offer price, and since we don't charge commissions or fees, you can save hundreds of thousands, and the number you see is what ends up in your pocket.
In most cases, Flexible will accrue a return until you decide to refinance or sell and pay us off. In some cases, as a limited partner, Flexible will receive part of the benefit of property appreciation.
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.
Typical transactions prohibit owners from canceling or making changes. With Flexible, you get seven days after accepting our offer to cancel your agreement—no questions asked.