Homeowners can access the equity of their home while renting it back
Real estate technology company Knock has announced the launch of Knock Nest, a standalone sale-leaseback solution that allows homeowners to access the cash they’ve built up in their home while continuing to live in it.
Via Knock Nest, homeowners can request a no-obligation cash offer for their home, allowing them to pay off their mortgage and access equity in about two weeks if they qualify. Knock will purchase the home and rent it back to the (former) owners. While living in the home, the consumer pays rent and is relieved of mortgage payments, property taxes and homeowners insurance.
Once a homeowner sells their home to Knock Nest, they can rent it back for one year or two years, then have the option to renew the lease or purchase back the home.
The company said that Knock Nest is designed to appeal to several groups of homeowners – those looking to lock-in a sale price while home prices are at all-time highs, the newly unemployed who want to start a business or pay down existing debt, or the millions whose mortgages are in forbearance due to the global pandemic.”
“For most people, their home is their single largest asset, and over 97% of homeowners have positive equity in their homes,” Knock Co-Founder and CEO Sean Black said in a statement. “We created Knock Nest to allow homeowners to put the equity they’ve worked hard to build to work for them – whether it’s to achieve their dreams, help with life’s uncertainties or plan for the next stage of their lives.”
Knock Nest is currently available in select cities in Arizona, Colorado, Florida, Georgia and Texas.
Since 2017, Knock has offered leasebacks to customers with its Home Swap solution. Over the last few months, Knock’s Home Swap solution has expanded across the country, most recently in three Florida markets. Now, the solution is available in 14 markets in the U.S., with plans to expand to 21 markets by mid-2021.