What is a Home Equity Investment?
A home equity investment (HEI) allows you to access a portion of your home’s equity without taking out a loan. Instead, an investor gives you a lump sum of cash today in exchange for a percentage of your home’s future value.
Unlike a HELOC or cash-out refinance:
- There are no monthly payments.
- It doesn’t show up as debt on your credit report.
- You retain full ownership of your home—no co-living situations or title changes.
The investor only gets paid when you decide to sell, refinance, or after a fixed term (typically 10 years).
Why HEIs Make More Sense in a High-Interest Market
With mortgage rates still hovering higher than expected, many homeowners are hesitant to touch their low-interest mortgages. Refinancing would mean giving up that low rate for a higher one.
An HEI lets you keep that great rate intact while still tapping into your equity.
And compared to HELOCs, which often carry 8–9% interest and require monthly payments, an HEI gives you liquidity with no payment drag on your monthly cashflow.
Use Cases That Make HEIs Powerful
- Paying off high-interest debt: One of Matthew’s clients used her home equity to eliminate $4,000/month in debt payments.
- Boosting passive income: Invest the unlocked capital into real estate or other passive income streams without the pressure of loan payments.
- Bridge strategy: Use the HEI to fix your cashflow and credit score, then later refinance or get a HELOC to pay it off and reinvest even more.
You maintain flexibility while creating more financial options for the future.
How the Numbers Work
Let’s say your home is worth $1 million and you want to access $100,000 in equity. In exchange, the investor (e.g. QuantumRE) might ask for 20% of your home’s future value.
If you sell your home in 10 years and it’s worth $1.2 million, you’d pay the investor $240,000. That sounds like a lot, but if you turned that $100,000 into multiple six figures through strategic investing in the meantime? That’s a win.
The cost of capital over 10 years averages around 11.4%, but that doesn’t include the cashflow and opportunity you create by using the funds.
Plus, there may be capital gains tax advantages, as the investment is structured more like selling a portion of your home than borrowing against it. (Check with your CPA.)
Who Is It For?
- Homeowners in high-appreciation areas like California (QuantumRE currently operates in CA)
- People with low-rate mortgages they want to preserve
- Investors or business owners who want to diversify or access funds without interrupting cashflow
- Anyone with poor credit or high debt-to-income ratios who can’t qualify for traditional loans
If you’re sitting on home equity and want that money working harder for you—but don’t want the burden of more debt—a home equity investment could be the answer.