REX Agreement Overview
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The purpose of this slide show is to offer a very basic overview of FirstREX and our flagship product, the REX Agreement. For additional information regarding FirstREX, please call Mike Lyon at 1-800-588-7600
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REX Agreement Overview
- 2. REX AGREEMENT Hi. Thanks for looking at the FirstREX presentation. The purpose of this slide show is to offer a very basic overview of FirstREX and our flagship product, the REX Agreement. Work your way through the presentation at your leisure. I hope that you find it informative and please don’t hesitate to call me personally with any questions or feedback that you may have. Mike Lyon.
- 5. REX AGREEMENT BASICS The REX Agreement • A smart new way for your clients to convert a portion of their existing home equity to cash without a loan. • The REX Agreement is a Real Estate Option Agreement. In exchange for the funding provided, FirstREX will share in the future change in value of the home- up (or) down.
- 6. REX AGREEMENT BASICS • Since the REX Agreement is not a loan, there are no interest charges and the homeowner makes no monthly payments to FirstREX – EVER. • The REX Agreement is a 30 year term. The homeowner is in control over when the Agreement ends up to the end of this time period. • The REX Agreement funds may be used for any purpose.
- 7. REX AGREEMENT BASICS How Does The REX Agreement Work?
- 8. REX AGREEMENT BASICS FirstREX is not a lender… …and the REX Agreement is not a loan.
- 9. REX AGREEMENT BASICS The Based On REX Agreement Future Is An Equity Home Value Investment
- 10. REX AGREEMENT BASICS At The Start Lump Sum Cash Payment Home FirstREX In Exchange For Owner Share Of Future Change In Value Up Or Down
- 11. REX AGREEMENT BASICS During Homeowner maintains the Home FirstREX property and pays the Owner mortgage, property taxes and insurance.
- 12. REX AGREEMENT BASICS At The End Which Occurs At A Time Determined By The Homeowner Home FirstREX Payment To FirstREX Owner Based On Change In Value Up Or Down
- 13. REX AGREEMENT BASICS How Much Funding Is Available? • The maximum funding available from a REX Agreement is currently 12.5% of the home value. • For example, with a home valued at $1 million, the maximum available funding is $125,000.
- 14. REX AGREEMENT BASICS What determines the shared % ? • The percentage of future value that is shared with FirstREX depends on the amount of funding obtained. • With a home value of $1 million, in exchange for providing funding of $125,000, FirstREX’s share of the future change in value will be 50%.
- 15. REX AGREEMENT BASICS • The homeowner may not need the maximum amount. They can also choose not to take the maximum amount. • For example, if the homeowner needs or wants only half as much funding, FirstREX’s share of the change in value will also be half as much.
- 16. REX AGREEMENT BASICS The Homeowner Is In Control. • The homeowner chooses the amount of funding and sharing of future value. • The Option Investment funds may be used for any purpose. • The homeowner will never make a monthly payment to FirstREX in exchange for the amount given to them – EVER.
- 17. REX AGREEMENT BASICS The Homeowner Is In Control. • The homeowner decides how long they need to use our money. • Maximum term is 30 years during which time they don’t pay us a penny! • They can settle up with us at any time without selling their home.
- 18. REX AGREEMENT BASICS Who Is FirstREX?
- 19. REX AGREEMENT BASICS FirstREX Based in San Francisco Founded in 2004 Funding since 2006 National recognition: * Wall Street Journal * New York Times * BusinessWeek Sole focus on providing innovative forms of funding to homeowners Industry Leader and home buyers without debt
- 20. REX AGREEMENT BASICS People Often Ask “How can you offer the REX Agreement? You make such long term investments… …you receive no Our Investors Ultimate Beneficiaries payments until the • Patient Capital • Today’s workers rely on pensions for their retirement home is sold… o Pension Funds funds o University Endowments • Tomorrow’s university …and you don’t even • Long term horizon students rely on endowments to provide control the timing of o Invest today to fund obligations far into the educational opportunities the sale” future • REX Agreement investments are a good fit
- 21. REX AGREEMENT BASICS Origination Process
- 22. REX AGREEMENT BASICS Qualifying is easy. • Must have good credit, a manageable budget, and at least 25% equity in the home. • Single family detached structures, townhomes and condos can qualify. Multi-family dwellings may qualify if the homeowner occupies one of the units.
- 23. REX AGREEMENT BASICS The Rex Agreement Process • FirstREX provides a thorough product education and processes the application. • An appraisal of the home is required. • The entire process from start to finish typically takes 4-6 weeks.
- 24. REX AGREEMENT BASICS For additional information regarding anything relating to FirstREX, please call Mike Lyon at 1-800-588-7600 More information is available at www.1Rex.info THANK YOU