Here's How The Fleq No-Mortgage Homeownership Model Will Work
The American dream of owning a home could be getting a little simpler and possibly shake things up in the housing industry. Fleq is a company that promises to help buyers attain a home with a large down payment, high credit standards, without large amounts of debt and free of long-term commitments.
So, how exactly does Fleq intend to help folks without demanding much from them in return? The company's founder and CEO Todd Sherer sat down with HousingWire to share some insight on some of the more complicated aspects of the platform.
The process puts plenty of power in the buyer's hand. First, you find the home you want and then Fleq teams you up with an Alliance representative. They will be in charge of quoting you a monthly payment and what your initial equity contribution will be.
Once approved, you will then have then have complete buying power and are able to contribute as much as you want towards owning more equity in the home.
When HW asked Sherer if he was concerned about the risk level of the purchase, he responded:
"We expect to get membership requests from customers with all types of credit profiles and it is important to be careful when adding member partners. However, private equity firms have purchased trillions of dollars of real estate to rent, and their vacancy rates are in the low to mid-single digits," according to the interview.
"This means there are lots of people who are successful renters, which is one of our primary eligibility factors. Fleq believes that with the right product many of these successful renters could be transitioned to successful homeowners."
He also outlines how the rental charges are handled, his thoughts on alternative mortgage options for millennials and much more. To check out the complete interview between Sherer and HW, click on the image above.