Jubilee Homes

If you think renting will always be smarter than buying, this will annoy you. In the last 30 days, 3.5 million impressions argued about this chart. Nobody mentioned this option. Is it smarter to buy a house or just invest in the S&P 500? The takeaway was simple: if you’d put the same money into the S&P instead of a home, you’d be richer today. Cue the “this is why Millennials are fine renting” narrative. Then came the counter-chatter. Plenty of smart minds from all sides: 👉 S&P 500 - Rent and invest. Homes are bad math. 👉 Homeownership - It’s not just math, it’s stability. Do you know what leverage is? 👉Rational - People should just do what they want. Sam Parr → “Buy because it’s a great emotional investment.” Ramit Sethi → “It’s a lifestyle choice.” Mike Fellman → “Charts ignoring imputed rent are flawed. Owning locks in costs.” Raad Michael Mobrem → “You can’t leverage like you can in housing. Do both.” Richard Wang → “Extremely misleading graph. Ignores too much.” A few sharp folks have dug into this problem before and admitted it’s tough to solve. Why would you not consider using Jubilee? Everyone assumes one outdated rule that you have to lock up 20% down and use a 30yr mortgage And the other issue: people just don’t know about us yet. But that’s exactly what we built Jubilee to fix. We just closed a deal that would’ve required more than $245,000 down. Buyers could afford it, but pulling that cash meant selling investments and paying capital gains. Instead, they put down $25,000. Their monthly payment is about $8,400. 👉 With Jubilee, you buy the home, pay a simple monthly land share, and can purchase the land whenever the timing makes sense. It’s not for everyone. But it’s right for many. And yes. You HAVE TO want to own a home to consider it. Renting will always be cheaper if all you care about is math. Tell me what I’m missing. Why wouldn’t you consider this?

Robinhood has revolutionized public equities and finance generally. We know and are working towards the next frontier, the housing market. Because of these types of promotions and products, you can save 50-75 bps on your mortgage, and save 95% on your down payment working with us!

His brother was having panic attacks about the down payment... I met with a guy for coffee to talk about Jubilee Homes and what a 2% down payment might mean for them. He got it right away because he's lived it. His brother is a a world class movie trailer editor in LA and they just bought a house in SoCal for $2M. They put up nearly their entire liquid savings to fund the $400K down payment + closing costs, and after they closed they discovered some major structural problems that needed to be fixed ASAP. They had to sell from their retirement funds and pay a bunch of taxes and penalties just so they could actually live in the house. We could talk about optimizing financial outcomes all day long, but I think the value of liquidity more than anything is the peace of mind you get - especially for the unplanned aspects of life.

This WSJ article reinforces what we've been working on at Jubilee Homes - that we need to create models of homeownership that are more flexible. Putting all your eggs in one single, concentrated, illiquid investment that's also the roof over your head doesn't make sense on two levels: 1.) What happens if home prices go down? 2.) What happens if you have some other shock in your life? (job loss, medical, etc.) And generally speaking there's a pretty high correlation between the two risk buckets. And the answer shouldn't necessarily be "never buy" either. It's about creating room in the middle - somewhere between rent vs. buy that can help more people get some of the benefits without owning all of the risk. https://lnkd.in/gREjrSHQ

We run into a lot of people that have been looking for a product like ours. Keep your cash working for you and appreciating in value while also beginning to build equity and own your home.

Our newest blog talking about the benefits of working with us on purchasing a home!

Get the same house but with a much lower purchase price. Lower down payment and monthly mortgage payments. Build home equity and get tax benefits without land burdens. We have the ability to help folks take control of the home buying process. Stop trying to time the market and waiting around on interest rates, and start building equity immediately!

WSJ just highlighted exactly what we're hearing in many conversations with our customers - that your home isn't the holy grail of investment opportunities. But instead of Rent vs. Buy... why not something that blends the best of both worlds? That's where Jubilee Homes comes in. https://lnkd.in/guBg8rP4

Look for something new coming soon!

First of many! Such an exciting time over here.