RE Shuffle
Enabling Financial Freedom
Introduction
We are building a real estate marketplace in the US to connect house buyers and sellers on a specific type of sale called "Viager" in France.
In this model, the seller is a senior who will sell her home at a discount, but maintain the right to live in it. She will receive an initial lump-sum and an annuity for life, while the buyer will invest in real estate at a discount, without having to take on a mortgage.
This type of placement is classified as "ISR", or "Socially Responsible Investment" in France, as it improves the lives of seniors, and is a better option than Reverse Mortgage for them.
Problem
The US has an aging population by number of people and by percentage of the population, that is increasingly struggling financially. However, they are the segment with the highest homeownership rates with 80% against a national average of ~65%.
At the same time, most people cannot afford a house because of high prices, high mortgage rates, and low wages.
Opportunity
A marketplace that connects buyers and senior sellers on a French type of sale.
Compared to reverse mortgages, and other types of equity release products on the market, with our model, the senior can access their equity:
- Without high and compound interests
- Without the need for a credit check
- Without being exposed to a risk of rent increase
- Without being exposed to the risk of foreclosure
At the same time, the buyer can invest in real estate:
- At a discount
- Still gaining from house appreciation
- Without having to take on a mortgage