Equity Sharing | Creative Real Estate Investing for Beginners | Video 2

[Epic Real Estate]

Equity sharing is the sharing of ownership, value and appreciation of a piece of property. It's most commonly used in commercial real estate ventures but it can be a very valuable and creative strategy for residential properties, if used the right way. In equity sharing deals, one partner is usually the "money partner" and the other partner is usually the "time and knowledge partner". This might mean one partner is more active than the other, but that's something you'll need to define in your equity sharing agreement. I strongly recommend that you do not share equity with someone that will be living in the property. If this is a route you intend to go down, I can't stress strongly enough how important it is to seek legal guidance before entering into this agreement.

Timestamps: 0:48 - what is equity sharing? 1:11 - what is equity? 2:35 - what does an equity sharing agreement look like? 4:52 - Example demonstration of how to structure an equity sharing deal