The EquityKey SolutionIntroduction

Too many eggs in one basket?

Major Household Assets

Source: Federal Reserve Board, Survey of Consumer Finances

62%

10%

16%12%

Primary Home

Non-Financial Assests

Financial Assets

Other Real Estate

How to free up cash

If a homeowner needed or wanted cash out of their

home, there have historically only been 2 options:

• Take on debt (mortgage, reverse, or HELOC)

• Sell the property

Until EquityKey!

Unlocking The Future Value of Real Estate Today

It’s not a loan, so there are no

monthly payments and no interest

The existing home equity remains

the homeowner’s

Only up-front cost to the

homeowner is the cost of an

appraisal

Agreement ends upon sale or

transfer of the property.

Homeowners choose the %

of future appreciation

sold to EquityKey

EquityKey pays your client cash today in exchange for a percentage of the future appreciation of their home.

How Does this Help Clients?

• Access money from the property without debt or sale

• Creates cash without impacting lifestyle or investments (“found

asset”); and one that likely would not be realized during lifetime

• Proceeds are tax deferred

• Eliminates downside price risk but leaves some upside in hands

of homeowner

• Estate planning: allows them to convert uncertain, taxable

assets into certain tax free or cash-flow generating assets.

How Much Money Do They Receive?

Example: Home value of $1,000,000

Share of Future

Appreciation Sold

75% 11.25% - 17.250% $112,500 - $172,500

70% 10.50% - 16.125% $105,000 - $161,250

65% 9.75% - 15.000% $97,500 - $150,000

60% 9.00% - 13.875% $90,000 - $138,750

50% 7.50% - 11.625% $75,000 - $116,250

40% 6.00% - 9.375% $60,000 - $93,750

30% 4.50% - 7.125% $45,000 - $71,250

% of Home Value Paid

Purchase Price Ranges

Purchase Price Paid

Examples above are for illustration purposes only. Actual agreements will vary and prices are subject to change without notice.

Sample Calculation of Appreciation

Growth Rate Property

Metro Month Year Index Total Annualized Value

San Diego July 2003 168.98 $1,000,000

May 2014 201.94 20.22 1.71% $1,202,000

Examples above are for illustration purposes only; actual index performance will vary across geographic regions. There can be no guarantee

that the Case-Shiller indices will perform similarly in the future.

Covering Downside Risk

While EquityKey is only buying a portion of the home’s future

appreciation, we are willing to cover 100% of any depreciation

(as calculated by the index), up to the total amount we paid the

homeowner.

Allows homeowners to take money off the table and sell risk

“When the boomers start to sell off their houses, there are

going to be too many boomers and not enough buyers.“

Dowell Myers, Demographer at USC

What Is Our Target Market?

Property Homeowner

Primary & Secondary Residences, Single

Family Attached & Detached, Site

Condo/Condo

Age 18 +

Properties located in CA, FL, NYPlanning to own the property for 7 or more

years

May use money from EK to pay down to Equity

Tier

Financially sound: acceptable DTI, credit

score, no delinquencies, not in danger of

default or foreclosure

Minimum Home Values

Los Angeles $465,000

San Diego $420,000

San Francisco $600,000

San Jose $650,000

New York $460,000

Miami $215,000

Tampa $160,000

Who Can Qualify?

Equity Tiered Underwriting Guidelines

Equity

Tier

Maximum Lien-to-Value (LTV)

Ratio*

Maximum Debt-to-

Income (DTI) Ratio*Minimum FICO

1 Existing LTV 1 + EK2 = 60% 80% 600

2 Existing LTV 1 + EK2 = 70% 50% 640

3 Existing LTV 1 + EK2 = 80% 45% 680

1 Total available balance(s) of outstanding mortgage(s).

2 Total amount of Purchase Price percentage paid by EK at time of funding.

*Monies from EK Purchase Price can be used at time of funding to pay down LTV and/or DTI to

acceptable tier maximum.

All EquityKey transactions are subject to complete underwriting review and approval by EquityKey, in its sole

discretion. Underwriting guidelines may change, with or without notice.

Who is the ideal EquityKey Client?

Case Study, San Jose, CA– Real Estate Investment

• Couple in their late 50’s

• August 2014 Home Value:

$3,850,000

• Purchase Price paid to homeowners:

$670,000

• Appreciation Sold to EK: 75%

Summary: Clients plan to give their son $100,000 for a downpayment on

his first home and then use the balance to purchase an investment

property…free and clear! They are still invested in the growth of real

estate but now have income as well!