Anyone had experience with a home equity investment?

Posted on: February 5, 2025 at 18:14:57 CT

Doing some updates to the house after living here for 14 years. Was considering a HELOC, but heard about something called a "home equity investment". You get cash out of your equity, and don't have to pay it back until you refi your house or sell it. No monthly payments, no interest. Sounds great, right? Sounded too good to be true, because banks aren't into interest free anything. They HAVE to make money somehow. Turns out, these scumbags want 15% of your gained equity between the time you take the cash, and the time you refi/sell. Say you take out 10K, and by the time you sell, your house is worth an addditional 100k. You have to pay back the 10k, PLUS 15k. So you get 10k but pay back 25k. Sheezus. F that. Anyone actually try this?