Author Topic: Unison.com -- anybody worked with them?  (Read 672 times)

lhamo

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Unison.com -- anybody worked with them?
« on: September 04, 2019, 02:15:54 PM »
Got a flyer yesterday for Unison.com -- seems like an interesting way to potentially free up home equity to bridge gap years to traditional retirement for FIREes who are house rich.

Their home owners program will give you a significant cash payment in return for an equity stake in your house that they get if/when you sell -- up to 17%, though for high value homes it seems to cap out at 10%.  So you can get 100k cash in a short period for a home valued at 1 mill.  You make no payments over the life of the loan.  You have to hold the property for three years to ensure they will also share in any loss.  If after the 3 year point you sell the house, the payback to Unison would look like this in different scenarios:

Sell for 1.1 million -- pay back the original 100,000 loan * 40% of appreciation (140k to Unison)

Sell for 1 million -- pay back the original 100,000 loan

Sell for 900k -- pay back only 60k (the original 100k-40% of the amount of depreciation)

You have to keep the property maintained to the same condition it was appraised at -- depreciation due to lack of upkeep will not be covered by Unison.

Still, this seems like an interesting prospect for anybody with a lot of home equity they would like to tap during early stage FIRE, especially if you have your house paid off and know you intend to downsize or relocate to a cheaper area.  Especially in bubbly places like Seattle and SFO where the risks of radical market swings are high.  Or you could use the money freed up to start investing in rental properties in cheaper areas (you cannot rent out your personal residence if you put it in this program)

They also have a downpayment assistance program for home buyers, but I think that makes less sense than the homeowner program for people on these forums.

Found a couple of reviews of the service, but wondering if any forumites have direct experience with the company or this kind of model.

https://ptmoney.com/unison-review/
https://thecollegeinvestor.com/24159/unison-review/


pbkmaine

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bacchi

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Re: Unison.com -- anybody worked with them?
« Reply #2 on: September 04, 2019, 05:44:38 PM »
I'd be worried about the "Deferred Maintenance Adjustment" clause. It sounds like lawyers could get involved if things go badly and the house sells for less.

electriceagle

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Re: Unison.com -- anybody worked with them?
« Reply #3 on: September 30, 2019, 09:15:30 AM »
Why do they get 40% of appreciation for lending 10% of the property value?

Another Reader

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Re: Unison.com -- anybody worked with them?
« Reply #4 on: September 30, 2019, 11:02:44 AM »
The return of the equity share schemes is a sure sign the housing market is peaking.

The math does not favor the property owner... Run.

affordablehousing

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Re: Unison.com -- anybody worked with them?
« Reply #5 on: October 01, 2019, 04:16:46 PM »
just a horrible, horrible idea. this (and several copycats) are all en route to dissolution and BK.

dandarc

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Re: Unison.com -- anybody worked with them?
« Reply #6 on: October 01, 2019, 04:32:23 PM »
Why do they get 40% of appreciation for lending 10% of the property value?
Exactly.

Proud Foot

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Re: Unison.com -- anybody worked with them?
« Reply #7 on: October 03, 2019, 10:31:28 AM »
Honestly I don't think this is worth it. I have looked at it a little just out of interest to see what it was. In my opinion there is too much left up to their discretion, not to mention the payback percentage. A lot less of a hassle to just use a HELOC.