With Home Affordability Near A 40-Year Low, This Hot Startup's Home Equity Marketplace Is Increasing Both Accessibility And Profit Potential

Mortgage rates hovering around 7% have been a major headwind in the housing market for both buyers and sellers.

Many who own a home are less incentivized to sell because of the lock-in effect — they have a lower mortgage rate than they likely could get in the next home they move to.

“Homeowners are staying put instead of selling because they don't want to lose their ultra-low interest rate. That's bolstering home prices because it means buyers are competing for a limited pool of homes,” according to a recent Redfin report.

Don't Miss:

• WealthTech startup unlocks a $33 trillion home equity market and you can own a stake in it with just $250.
• New homebuilding startup could be in the right place at the right time to shock real estate market – and it sells for $5 per share.

Sixty-eight percent of American family wealth is trapped in home equity, and homeowners historically have had two choices to access it. They could sell their home or take on extra debt via a refinance or home equity loan. In today's high interest rate environment, neither is ideal.

For first-time homebuyers, there's an affordability issue brought on by both rising home prices and high borrowing costs.

In 2023, only 15.5% of homes for sale were affordable for the average U.S. household, according to Redfin.

These conditions have created a dream opportunity for Nada, a two-sided marketplace that's seeking to disrupt the home equity market and unlock wealth for both prospective buyers and sellers.

Trending: Fortnite’s creator company greenlights partial ownership for up to 100 accredited investors in the upcoming series.

Nada offers what it calls Home Equity Investments (HEIs). It originates HEIs, called Homeshares, from homeowners. It then creates investment products called CityFunds for investors. 

Nada believes the benefits to both parties are multifaceted.

Homeowners can cash out of the home debt-free, without monthly payments, interest rates, restrictions on funds or impacting credit and still maintain majority ownership.

Investors can tap into the previously inaccessible home equity market with historically solid returns to build an efficient and diversified portfolio with no property management risks.

Nada is allowing everyday investors to participate in its upside alongside venture capitalists through its equity crowdfunding raise.

For as little as $250, investors can invest in Nada on Wefunder while it remains a private company.

Read Next: 

• This startup coined “eBay for gamers” with a breathtaking track record has opened up a window to invest in its future growth.
• Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity.