Dan Burnett's Q&A With HousingWire

Why Hometap is betting on the growth of the home equity investment market

Based on the notion that far too many U.S. homeowners are “house-rich, cash-poor,” home equity investment firm Hometap provides clients with a way to tap into their home equity instead of selling their home or taking out a loan.

Hometap, as an investor, provides cash in exchange for a share of their home’s future value. When the home sells or the homeowner settles the investment within the 10-year period. In return, Hometap receives an agreed-up percentage of the sale price or current appraised value.

“We do see this as a new asset class in the real estate ecosystem and we see it as complementary to traditional debt options that exist today,” Dan Burnett, head of investor product at Hometap, said in an interview with HousingWire.

This article originally appeared on HousingWire. See the full article here.