EquityRock is a home finance and real estate investment company. The company helps homeowners make safer and smarter decisions about their single largest asset and better plan their financial futures by enabling them to convert the equity accumulated in their home into cash, with no debt, no interest, and no monthly payments.

EquityRock was founded in 2004. The leadership team at EquityRock comes from leading financial services companies including Barclays Global Investors, Nomura Securities, JP Morgan and McKinsey & Company.

A real estate investment agreement in the form of an option that provides you with money today with no debt, no interest, and no monthly payments. In exchange, you agree to give EquityRock the right to share in the future change in value of your home.

No, a REX Agreement is not a loan.

No. There is no interest charged or deferred.

No. There are no monthly payments.

Typically, approximately 10% of your home’s value. The amount you get depends on the share in the future change in value of your home that EquityRock has the right to share in and the terms EquityRock is able to offer on your home.

There are no restrictions on the use of the money. Uses may include debt repayment, estate planning, charitable giving, securing retirement income, funding a major purchase, paying a child’s education, etc.

We use several valuation sources, including a neutral 3rd party appraisal for which you will pay. The home value sets the starting point from which EquityRock will have the right to share in future appreciation or deprecation of the property.

EquityRock shares in increases and decreases in value. If your home value declines, the value of EquityRock’s interest declines as well.

It typically lasts 10 years, but can end sooner if you sell or move out of your home, you allow liens on your home other than as permitted under the REX Agreement, or you jeopardize the value of your home or EquityRock’s rights under the REX Agreement.

Generally a REX Agreement lasts until you decide to sell your home.

Typically your REX Agreement ends when you sell your home, at which time EquityRock receives its interest in the change in value of the home that has occurred since the origination of the REX Agreement.

1. The homeowner decides how much cash they want from a REX Agreement and/or the percentage of the future change in value of the home they are willing to share with EquityRock.
2. The homeowner and EquityRock agree on the value of the home using various valuation tools including a 3rd party appraisal.
3. The homeowner completes an application and, if the application is approved, EquityRock determines the exact amount of the cash payments, and formally offers a REX Agreement to the homeowner. If the homeowner accepts, the REX Agreements is completed and the homeowner receives the cast payment.

EquityRock does not give tax advice and every homeowner is encouraged to speak to their tax advisor for a full explanation of the tax treatment of a REX Agreement. It is EquityRock’s understanding that under current tax law a homeowner entering into a REX Agreement should be able to defer the tax impact of receiving the cash payment from EquityRock.

The amount EquityRock is able to pay upon entering the agreement varies depending on the value of the home and the percentage of the future change in value the homeowner agrees to share with EquityRock. The terms EquityRock offers for your home may vary over time and may differ from the terms EquityRock offers for similarly situated homes.

Only under limited circumstances as clearly specified in your REX Agreement and only after EquityRock first exercises its purchase option. Examples of such circumstances include (please see the Product Information Guide for the complete list):

• Homeowner fails to maintain the home as their primary residence.
• Homeowner fails to keep the home in good condition, subject to ordinary wear and tear.
• Homeowner does not promptly pay taxes, insurance and any mortgage loan.
• Homeowner does not maintain proper insurance coverage.
• Homeowner exceeds the agreed upon limit on the total principal amount of any loans that may be secured by the home.

However, in all such cases you will have the right and opportunity before EquityRock takes any action, to repurchase EquityRock’s interest, or otherwise remedy the situation.

Yes, you can end your REX Agreement at any time by repurchasing it. Generally, if you choose to end an REX Agreement after 3 years, it is treated similarly to a sale of the home where EquityRock receives the amount it would have received if you had sold the home.

If you choose to end a REX Agreement during the first 3 years, there is an Early Exit Cost generally equal to 20 of the payment you originally received, which is added to the amount owed to EquityRock. When ending a REX Agreement during the first 3 years, the homeowner pays EquityRock based on either the then-current value of the home, or the value of the home when the homeowner entered into the REX Agreement, whichever is greater.

An independent, third party appraisal will be ordered and paid for by the homeowner to determine the current market value of the home.

No. If you follow the process set forth in your REX Agreement, you will receive full credit for the market value of any material improvements to your home. The value you are credited with will be determined by a 3rd party appraisal and subtracted from the home’s sale price (or then-current market value) before calculating the EquityRock share.

Yes, with a REX Agreement you may continue living in your home, are not required to pay any form of rent and will continue to enjoy the tax advantages of owning a home. EquityRock does not go on title and is not a co-owner.

No. You do not have to pay off your current mortgage.

Your mortgage debt may be up to 70% to 80% of your home’s value at the time that you enter into a REX Agreement depending on the terms offered for your specific property.

No. Mortgage insurance is not required for a REX Agreement.

No. You only need to be old enough to legally enter into a contract.

REX Agreements are for primary, owner-occupied residences only.

The costs of obtaining a REX Agreement will vary, but include standard residential real estate transaction fees for: appraisal, preliminary title report, title insurance, credit report, natural hazard disclosure, tax service, flood certification, notary, wire, messenger, recording, escrow/closing and any fees charged by your broker. There is also an origination fee.

EquityRock also pays the homeowner an Option Fee which goes a long way toward offsetting the fees paid by the homeowner.

No. A reverse mortgage is a loan in which all interest is added to the principal instead of being paid monthly (this feature is called negative amortization). You pay no interest on any payments you receive under a REX Agreement.

Yes, homes held in revocable or similar trusts are typically eligible for a REX Agreement assuming the other investment criteria are met.

Yes. If you choose to sell your home, EquityRock will be paid for its interest out of the proceeds of the sale.

EquityRock believes that it can achieve consistent positive returns by investing in a geographically diverse portfolio of real estate, thus mitigating the risk associated with investing in only one home or one potentially volatile region of the country.

Below is a brief description of the four legal documents that comprise a REX Agreement and that the homeowner must sign when entering into a REX Agreement.

1. Option Agreement – This document grants EquityRock the right to share in the future value of your home. This document confirms the amount of the cash payment that EquityRock will pay the homeowner upon entering the REX Agreement, and the percentage of the future value of the home in which EquityRock will share.
2. Covenant Agreement – This document explains the rights and responsibilities of the homeowner, and those of EquityRock, concerning the property. For example, the Covenant Agreement requires that the home be your principal residence, that you pay your property taxes on time, that you maintain your home in good condition, and that you make all payments on loans that are secured by liens on your home. The Covenant Agreement also spells out how any sale of the property is to be handled and how the sales proceeds are to be shared. The Covenant Agreement also gives the homeowner the ultimate protection – the right to end the REX Agreement by paying EquityRock the value of its interest as determined at the time of termination.
3. Recorded Memorandum – This document which is recorded in the public records in the county where the property is located that notifies third parties of the existence of the REX Agreement and of certain of EquityRock’s rights and the homeowners obligations under the REX Agreement.
4. Security Instrument – This document which is also recorded in the public records in the county where the property is located protects EquityRock in a situation in which the homeowner fails to abide by the terms established in the Option Agreement and the Covenant Agreement or refuses to recognize EquityRock’s interest in the property.