There have been only a few options for individual needing to access the equity in their home.  If one needs investment capital for a “can’t pass up” deal, but don’t want to borrow more money.  According to Dean Foust of Business Week, there’s A New Way to Extract Equity from Your Home.  If one has a mortgage for less than 67% of the value of the house, one may qualify for a REX™ Agreement. This new service called Real Estate Exchange (“REX”) that will typically provide cash up to 15% of the equity in the home.  Instead of charging you interest and principle payments, an equity position (up to 52%) in the equity of your home it taken with the Agreement.

This program will “partner up” with individuals on a new house or a residence already owned and shares in the appreciation or depreciation of the house. REX™ Agreements are only for primary, owner-occupied residences.  It is not for rental or investment properties.

The contract can be written in REX™ Agreement for up to 50 years, and it ends at the earlier of the expiration date or when the house is sold. When buying a house, the funds can be used towards the down payment, and if the house is already owned, the money can be used for whatever purpose the homeowner chooses.

There’s no minimum income or assets requirement, but the credit requirement is a credit score of at least 680.  If you want to terminate the agreement, you can “buy out” the REX™ Agreement for the appreciation or depreciation difference at the time of the buyout.

According to Brooke Southall, in InvestmentNews, consumers don’t pay taxes on the money that they receive from a REX™ Agreement, and many use the funds to hedge their investments from just real estate. As the article says “In 90% of the cases, customers used fund received to reinvest in securities or additional real estate.

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When selling a property, what is the best and fastest way to sell?  There are several for sale by owner websites sellers can use to get their message out.  Every property will sell if it is priced right and buyers know about it.  I think that is without question, but what is best to get the word out?

Online real estate tours are becoming popular.  Realty Thoughts has done a review of three real estate video services that can make an impact in 2007.  Currently many individuals and real estate professionals are using YouTube.

Real Estate Agents have found very effective ways to sell real estate.  They are the professionals.  Since success leaves clues, I would suggest real estate investors attempting to sell their own properties in ways that mimic what has been successful for agents.  Listing the property with the MLS, holding open houses, networking with other agents and sharing commissions.

The technics that agents use can be modified in one form or another to work for investors too.  There are flat rate brokers who will list the property in the MLS on your behalf, you can hold open houses, you can network with agents and other investors to find buyers.

Here are a couple of tips that have worked for me:

1. Post your property for sale on eBay.  There are many buyers that have first been exposed to properties on eBay.  One can get exposure for their property to potential buyers from around the world.  Ebay Real Estate.

2. Yahoo Real Estate Groups are an effective way to network with other investors and find buyers. Yahoo Real Estate Groups.

Best of luck in selling your property, and remember, “success leaves clues.”

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