The Tenant Investor is able to achieve a minority interest in ownership immediately by investing an agreed-upon amount through escrow. And, depending on the Agreement, the total of the agreed investment may occur over a designated period. The interest is recorded. The Tenant Investor never achieves majority ownership until the Capital Investor’s interest is purchased at terms contained in the Agreement.

Tax benefits from interest on the loan and real estate taxes in the Agreement are awarded to the Tenant Investor. After-tax payments may be less than rent. In addition, a Tenant Investor may be awarded some or all of the equity build up occasioned by a decline in the loan amount over the term of the Agreement.

The Tenant Investor does not participate in the appreciation of the property until his minority interest is at 49%. Upon reaching 49%, the participation starts from the re-calculated value at that time.

Just because a Tenant Investor won’t be qualifying for a loan, a FICO score is still important. CoVest Properties performs common-sense underwriting for the Capital Investor that is more detailed than a FICO score. CoVest Properties needs this information to make a recommendation to the Capital Investor who will have the final say.

After the achievement of near-parity with the Capital Investor, the Tenant Investor follows a path to the 100% ownership goal within a set time frame. The Tenant Investor enjoys all the benefits of ownership denied to renters – privacy, equity build up, tax advantages, appreciation, stability.

Alternatively, the Tenant Investor may elect NOT to purchase 100% and allow the Capital Investor to re-purchase the position at a price prevailing at the termination. Or, both Parties could elect to sell. Finally, the Parties could elect to re-finance and continue the relationship.

Benefits of CoVest Properties Program

A great house, good schools for your children, neighbors that you can relate to, with close proximity to the things important to you and your family, a sense of accomplishment that only home ownership can provide and investors that want you to stay in the property. If you qualify, your life may be changed – forever.