Detailed Description of Equity Key Product
The Equity Key plan is an opportunity for seniors to sell a percentage of
the future equity increases in their properties for cash now. This is not a loan
program and the monies paid are for the option and are not paid back. There
are a lot of specifics involved that need to be understood and agreed to but
this program can mean significant cash income for senior property owners.
Equity Options is a commercially sponsored program. The sponsoring
corporation is KBC Bank, one of the 25 largest banks in the
world, based in Brussels Belgium and holding over $450 Billion in assets.
To further explain the program, what is offered is the opportunity for the
property owner to sell the rights, or an option if you wish, for the rights to
50% of the future equity increase in your property, for cash now. You can
also sell an option on 100% of the future equity increase of your property, for
twice the amount of the standard offer.
As an example, if you own a property that currently has a market value of
$1,000,000, you might sell the rights to 50% of the future equity increase in that
property. This does not affect your current ownership and equity position.
You continue to own 100% of the current appraised value of the property. You
would receive a cash payment now equal to somewhere between 12% and 15%
of the current appraised value of the property. This is not a loan, it is a cash
payment now for future possibilities. If the amount offered is 15%, your cash
payment for the option would be $150,000, paid now.
When you decided to dispose of the property, and these offers do not change you
off title, you continue to be the owner and controller of the property, however,
the commitment needs to be for a minimum of 10 years normally, the property
is appraised and the amount over the original appraised amount is decided, half that
amount, as well as the original appraisal amount is yours, the other 50% of the
equity increase, whether it is adequate enough to cover the initial payment or not,
is due to EquityKey. There are many options about how to exit the program
and are too extensive to detail here. The details for any specific program are
specific to that program alone and can be negotiated, within bounds.
To qualify for the Equity Key plan a person must:
Be between the ages of 65 and 85
Be in moderately good health (more details below)
Own property in either California or New York (other areas being added soon)
Have at least a 30% equity position in the property
The amount you can receive will be discussed later. In general, for this program,
younger is better than older and will yield a larger cash amount. Residence in
or on any of the properties is not a requirement of this program. As an
element of this program is a life insurance policy on the owner, health can be an
issue also. To qualify a person must be able to pass a basic medical exam and
not have any of the following conditions, as well as others:
Not be a smoker or user of tobacco in any form
Not have had a recent heart attack nor be morbidly obese
Not have had serious cancer last 5 years
Not have Type 1 diabetes
Not participate in risky adventures, such as sky diving, etc.
The property you own must be in California or New York states. Other
states are being considered and will be added at appropriate times. There
must be a minimum of about 30% equity in the property, although this can
vary between property types. The types of properties that can be used are:
Your home or a second home or vacation property
Rental property
Commercial property
Investment property
Unimproved land may qualify, or not, on a case by case basis
The minimum property value to initiate this program is $500,000. The
maximum is approximately $3,000,000, but is not a firm amount, depending
on the individual property. Multiple properties of mixed types can be
combined to increase the total amount. Also, multiple programs can be
initiated for the same individual(s).
The main ingredients that the specific amount of percentage of payment are
based on is a combination of:
The location of the property
The type of property
The condition of the property
The insurability of the property owner
As the original output of funds is considerable and is based on the theory that
property values will increase in the long run, to insure that EquityKey
does not incur major losses in the case of a premature end to the program, there
is a life insurance policy placed on the owner, whose premiums are paid for
by EquityKey and who is named as the beneficiary. Further, if the owner ends the
agreement prematurely, for any reason, monetary adjustments may be made.
As this is a complex agreement, there are many details that must be addressed
and can only be adequately detailed within the parameters of a specific deal.
To find out all the facts and to find out if this program is correct for your
future life and estate planning, call for a face to face meeting.
The Equity Key plan is an opportunity for seniors to sell a percentage of
the future equity increases in their properties for cash now. This is not a loan
program and the monies paid are for the option and are not paid back. There
are a lot of specifics involved that need to be understood and agreed to but
this program can mean significant cash income for senior property owners.
Equity Options is a commercially sponsored program. The sponsoring
corporation is KBC Bank, one of the 25 largest banks in the
world, based in Brussels Belgium and holding over $450 Billion in assets.
To further explain the program, what is offered is the opportunity for the
property owner to sell the rights, or an option if you wish, for the rights to
50% of the future equity increase in your property, for cash now. You can
also sell an option on 100% of the future equity increase of your property, for
twice the amount of the standard offer.
As an example, if you own a property that currently has a market value of
$1,000,000, you might sell the rights to 50% of the future equity increase in that
property. This does not affect your current ownership and equity position.
You continue to own 100% of the current appraised value of the property. You
would receive a cash payment now equal to somewhere between 12% and 15%
of the current appraised value of the property. This is not a loan, it is a cash
payment now for future possibilities. If the amount offered is 15%, your cash
payment for the option would be $150,000, paid now.
When you decided to dispose of the property, and these offers do not change you
off title, you continue to be the owner and controller of the property, however,
the commitment needs to be for a minimum of 10 years normally, the property
is appraised and the amount over the original appraised amount is decided, half that
amount, as well as the original appraisal amount is yours, the other 50% of the
equity increase, whether it is adequate enough to cover the initial payment or not,
is due to EquityKey. There are many options about how to exit the program
and are too extensive to detail here. The details for any specific program are
specific to that program alone and can be negotiated, within bounds.
To qualify for the Equity Key plan a person must:
Be between the ages of 65 and 85
Be in moderately good health (more details below)
Own property in either California or New York (other areas being added soon)
Have at least a 30% equity position in the property
The amount you can receive will be discussed later. In general, for this program,
younger is better than older and will yield a larger cash amount. Residence in
or on any of the properties is not a requirement of this program. As an
element of this program is a life insurance policy on the owner, health can be an
issue also. To qualify a person must be able to pass a basic medical exam and
not have any of the following conditions, as well as others:
Not be a smoker or user of tobacco in any form
Not have had a recent heart attack nor be morbidly obese
Not have had serious cancer last 5 years
Not have Type 1 diabetes
Not participate in risky adventures, such as sky diving, etc.
The property you own must be in California or New York states. Other
states are being considered and will be added at appropriate times. There
must be a minimum of about 30% equity in the property, although this can
vary between property types. The types of properties that can be used are:
Your home or a second home or vacation property
Rental property
Commercial property
Investment property
Unimproved land may qualify, or not, on a case by case basis
The minimum property value to initiate this program is $500,000. The
maximum is approximately $3,000,000, but is not a firm amount, depending
on the individual property. Multiple properties of mixed types can be
combined to increase the total amount. Also, multiple programs can be
initiated for the same individual(s).
The main ingredients that the specific amount of percentage of payment are
based on is a combination of:
The location of the property
The type of property
The condition of the property
The insurability of the property owner
As the original output of funds is considerable and is based on the theory that
property values will increase in the long run, to insure that EquityKey
does not incur major losses in the case of a premature end to the program, there
is a life insurance policy placed on the owner, whose premiums are paid for
by EquityKey and who is named as the beneficiary. Further, if the owner ends the
agreement prematurely, for any reason, monetary adjustments may be made.
As this is a complex agreement, there are many details that must be addressed
and can only be adequately detailed within the parameters of a specific deal.
To find out all the facts and to find out if this program is correct for your
future life and estate planning, call for a face to face meeting.
Consult your tax advisor. Consult appropriate Government Agencies. CA Department of Real Estate Broker License 00350120
© 2007 Capital Reverse Mortgage Group, Inc
 | |  | |  | |  | |  | |  | |  | |  |
| 959 South Coast Drive, Suite 490 Costa Mesa, CA 92626 (714) 433-0738 |