FirstREX Helps With Mortgage Down Payments in Exchange for Home Equity
Jeff Uter would have needed to sell stocks or pull cash out of his consulting business to afford the down payment on a $780,000 home in Orange County, Calif. Instead, he paid half of the 20 percent required and got the other $78,000 from San Francisco-based real estate investment companyFirstREX. In exchange, FirstREX will get 40 percent of any gains in the value of Uter’s four-bedroom condo in a golf course community when it’s sold. “I have stocks and my own business,” says Uter. “I’d rather invest in that than put it in a personal residence.”
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