House. Equity. Choice – The HouseAmp Proposition

A guest article by Walter Allen, President| HouseAmp.

Residential Real Estate is the largest asset class in the world. In the US alone, residential real estate is valued at a staggering $40 trillion. While it is understood that the housing market is a bellwether for the entire economy, it is rarely mentioned that Americans have about $22 trillion in home equity and owe about $18 trillion in mortgage debt.

For many families, their home equity constitutes the bulk of their net-worth. Home equity, however, does not imply liquidity or the availability of cash; often, the ability to tap into one’s home equity is constrained by stringent financial requirements, income to debt ratios, and a host of other factors.

This can lead to difficulty for many people who have wealth caught up in their homes but little cash. For people who are interested in selling their houses to avail of the equity (or for other reasons), another difficulty arises. This difficulty can be turned into an opportunity under the right circumstances and with the right partners.

Put simply, many houses would sell for substantially more money if they were refurbished before sale. The increase in sale amount in many cases far exceeds the amount of money used for refurbishment. The key is to determine which elements of the house to change- to drive the most ROI- and to be able to arrange the liquidity to get the refurbishments done.

Many people struggle at this point. They have money locked in their home equity and are looking to maximize their returns but don’t have the cash on hand or wherewithal to make the right changes in order to derive the most gain upon sale.

Estimates are that millions of people are in this circumstance every year. As such, the scale of the opportunity is great, matched fully by the need in the marketplace for a solution. This creates a crossover between an economically productive set of services and a set of services built on the notion of fairness, equity, and homeowner value in the overall housing ecosystem.

Providing early and timely liquidity to home-sellers such that they can upgrade their homes, sell for a high multiplier of investment, and then enjoy the benefits of increased equity while only settling with the liquidity provider “later” is thus an important part of the fertile housing transaction ecosystem.

Doing this while providing ease, speed, and security is gravy on top.

We are moved every day by the stories of people whose lives are altered by the services we make available. Both the opportunity and the gratification are monumental.

Written by Paul Dunay
Paul Dunay is an award-winning B2B marketing expert with more than 20 years’ success in generating demand and creating awareness for leading technology, consumer products, financial services and professional services organizations. Paul is the global vice president of marketing for Maxymiser a leading web optimization firm, and author of four “Dummies” books: Facebook Marketing for Dummies (Wiley 2009), Social Media and the Contact Center for Dummies (Wiley Custom Publishing 2010), Facebook Advertising for Dummies (Wiley 2010) and Facebook Marketing for Dummies 2nd Edition (Wiley 2011). His unique approach to marketing has led to recognition of Paul as a BtoB Magazine Top 25 B2B Marketer of the Year for 2010 and 2009 and winner of the DemandGen Award for Utilizing Marketing Automation to Fuel Corporate Growth in 2008. He is also a finalist for the last six years in a row in the Marketing Excellence Awards competition of the Information Technology Services Marketing Association (ITSMA), and is a 2010 and 2005 gold award winner in Driving Demand. Buzz Marketing for Technology, Paul’s blog, has been recognized as a Top 20 Marketing Blog for 2009 and 2008, a Top Blog to Watch for 2009 and 2008, and an Advertising Age Power 150 blog in the “Daily Ranking of Marketing Blogs.” Paul has shared his marketing thought leadership as a featured speaker for the American Marketing Association, BtoB Magazine, CMO Club, MarketingProfs, Marketing Sherpa, Marketing Executives Networking Group (MENG), and ITSMA. He has appeared on Fox News, and his articles have been featured in BusinessWeek, The New York Times, BtoB Magazine, MarketingProfs and MarketingSherpa. Paul holds an Executive Certificate in Strategy and Innovation from MIT’s Sloan School of Management and a bachelor’s degree in Marketing and Computer Science from Ithaca College.