Welcome to Money for the rest of us. This is a personal finance show on money, how it's title, When to Sell Equity and When to

borrow, the Guide for Homeowners, Students, and Artist. After last week's episode 493 on the affordable housing crisis, I received an email from a PR agency,

and I get dozens of emails from PR agencies, but this one I looked at and it mentioned that homeowners were waiting for interest rates to fall below 6% before they move. And there's a backlog of people that haven't moved.

The PR company was representing a company named unlock which provides home equity investments, sometimes known as home equity share agreements.

Essentially instead of borrowing money, a homeowner could receive a payment in exchange for the future upside or

appreciation in the home. The equity. This got me thinking over the past week.

I wasn't that familiar with Home Equity Share Agreements, but considering

other situations where we have to decide, should we borrow money or should we give up some equity?

We discussed this five years ago

in an episode that I'll link to in the show notes

on income share agreements,

where a student could borrow money, take out a loan to pay tuition for some

training or college degree, or they could give up some of their future earnings potential and the payback of that

tuition assistance would be based on the future share of income.

It's a way of selling equity in yourself.

And another option that we'll explore in this episode

relates to artist,

artists that have written a song or performed a song and have a copyright to it,

intellectual property, they have the option of selling the upside in that song in terms of future income streams from royalties and it's

like selling equity but in this case it's equity in a future income stream for a copyrighted asset.

Let's go ahead and take a look at those examples and then we'll step back and

derive some principles for deciding when we should potentially sell equity or

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