Rants: Investors Are Targeting Your Home Equity. Here’s How It Really Works.

Rants & Gems Real Estate Podcast

EYL Network

Investing, Business

4.9 • 1.3K Ratings

🗓️ 9 December 2025

⏱️ 17 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Home equity investment companies like Hometap, Unison, and Point are coming for homeowners who want fast cash with no monthly payments. But what’s the real cost? In this video, I break down exactly how these equity-sharing agreements work, why investors are targeting your home equity, and the traps most people never see coming.

Most homeowners only hear: “No payments. No interest. Quick money.”

But they never hear the part about giving up future appreciation, balloon payouts, refinancing restrictions, or how these companies profit when your property value goes up.

I’ll walk you through:

How home equity investments actually function

The math behind your payout vs. their cut

Why these companies love rising home prices

When an HEI makes sense — and when it’s a terrible move

Real examples of how much you could owe at the end

How investors can use this strategically without getting burned

If you’re thinking about tapping your home’s equity… watch this before you sign anything.

📌 WANT TO LEARN REAL ESTATE THE RIGHT WAY?

Join my next live class, bootcamp, or mentorship at:

👉 https://mgbootcamp.com

📞 NEED FUNDING OR HAVE A DEAL?

Connect with me directly.

//MG The Mortgage Guy Official Instagram: https://www.instagram.com/mgthemortgageguy/

//MG The Mortgage Guy Official TikTok:

https://www.tiktok.com/@mgmortgageguy

SUBSCRIBE: https://www.youtube.com/c/MGTheMortgageGuy

Advertising Inquiries: https://redcircle.com/brands

Privacy & Opt-Out: https://redcircle.com/privacy

Transcript

Click on a timestamp to play from that location

0:00.0	Okay, we back. We back. Second live of the day, Matt Garland, NMLS, number 5-870, better known as MG, the mortgage guy. We are live. We are blessed. Thank God for another day. So look, man, we're going to talk about home equity investments. Earlier today, when I had my guy Nick Gouche on we kind of touched into
0:24.6	this a little bit about home equity investments if this your first time here on the
0:31.3	channel type first time type first time if this is your first time here okay I hit the
0:37.0	bell for notifications you never know I'm
0:38.5	going live, but I want to talk to you guys today because we brought up home equity investments
0:44.6	earlier and me being the type of person that I am, I got to always go back and I got to research
0:51.6	and I got to look into it because I've heard of it before,
0:54.7	but I wanted to do a deep dive into this with you guys tonight.
0:58.6	So that's what we're going to talk about for a quick 10, 15 minutes.
1:02.9	And I'm going to take all questions in the comments too.
1:06.1	But home equity, we speak about HELOCs, right?
1:11.0	Home equity line of credit.
1:12.7	We speak about he loans, home equity loans, right?
1:18.9	I have tons of videos on those.
1:21.1	So go back to the playlist and watch them.
1:23.7	But a home equity investment is really not a loan. There's no interest rate. There's no
1:31.0	monthly payments. There's no hit to your DTIs. It's a cash for equity type of situation.
1:39.8	These companies who are offering it for the most part, they're going to give you a lump
1:44.0	summer cash today.
1:45.3	In exchange, they get a percentage of your home's future value or appreciation.
1:52.0	So when you sell the house, when you go refinance the house, or when the term expires, which is usually a 10-year term, then you have to pay them back based off of that.
2:03.8	And I'm going to share the screen in a second to show you one of the companies that I found.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from EYL Network, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of EYL Network and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.