In 2023, EasyKnock rolled out its suite of flexible financial solutions, namely its sale-leaseback programs. Traditionally a popular commercial real estate strategy, sale-leaseback is a transaction where a company sells its property and then leases it back, so they get cash upfront but can keep using the space. EasyKnock applies this idea to residential real estate, allowing homeowners to sell their property but stay as renters. And because EasyKnock is not a lender, customers need not worry about increasingly strict qualification requirements of traditional solutions like home equity lines of credit or home equity loans.
In the Sell & Stay program, EasyKnock purchases the home for its full appraised value, giving homeowners up to 75% of the appraised value in cash, and the remainder in a Sell & Stay option contract. Customers can stay as renters, paying fair market rent, for up to five years. At any time during those five years, the option contract allows them to buy the house back or direct EasyKnock to sell it on the market.
If the customer decides to repurchase the home, their option contract allows them to do so at a discount, regardless of the home’s value appreciation. If the homeowners direct EasyKnock to sell the home and the value of the home has increased, the customer captures all applicable appreciation.
