This document describes a new home ownership structure called FARJHOSM that allows homeowners to use their home equity to co-own homes with tenants. It provides three key benefits: 1) it allows owners to only co-own one home at a time to maintain single-family home ownership; 2) it uses member-level rather than property-level debt financing to eliminate the risk of foreclosure; and 3) the tenant's equity stake acts as a buffer against missed rent to provide stability for both tenants and investors.

1. Do you have trouble in obtaining a conventional
mortgage to buy a home or any trouble in selling
your existing home when potential buyers could
not qualify for a mortgage to buy your home?
InvestorsAlly could help you buy a home using the new equity sharing
method and/or help you sell your house much quicker because
InvestorsAlly could help other potential buyers obtain both conventional
mortgages at low mortgage rates when they have good credit, and if not,
help them try the new alternative equity sharing method of FARJHOSM.
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The distinguishing features of FARJHO as a new business method to implement the equity sharing concept are three-fold:
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First, FARJHO allows renter/home occupier and joint property investors to own only one home at a time in order to maintain the
sanctity and the freedom of the single family residence ownership. This is in sharp contrast to many community oriented equity
sharing methods of Co-ops, Land Trusts, Kibbutz or Commune types of older equity sharing methods.
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Second, as a brand new concept, FARJHO only allows member level debt financing to eliminate the foreclosure possibility
which exists with conventional property level debt financing as commonly used by a Shared Equity Mortgage (SEM), a Shared
Appreciation Mortgage (SAM), a Shared Ownership Mortgage (SOM) or any other existing equity sharing schemes to date. In all
those older business methods, the home occupiers could still get foreclosed whenever they lose their monthly income capability
under those old property level financing arrangements.
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Third, FARJHO provides a natural built-in buffer to conventional renting to avoid potential eviction when the tenants temporarily
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lose their monthly income capability. The equity stake of the renter/co-owner of the FARJHO structure could act as an optional
voluntary collateral against missed monthly rent payments and therefore provides property investors with enhanced investment
security through less credit risks and at the same time provides the tenants/co-owners with more home occupying stability during
the rainy days in their working lives.
1-888-456-8881 x 888 http://www.InvestorsAlly.com info@investorsally.com

2. Application Example of An Arbitrage Investment Opportunity
Using the New FARJHOSM Home Ownership Structure
Do you want to put your idle home equity to work so that you could earn more appreciation potential? Would you be interested in
helping other less affluent residents to partially co-own homes in California?
You could use your excess home equity to co-own homes with a tenant/partial home co-owner in a new home ownership
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structure called FARJHO – Flexible And Reversible Joint Home Ownership. Here is a short analysis for a home of an
appraised value of $2,000,000. The amount of cash out re-finance is assumed to be $1,000,000 for illustration simplicity purpose
as an example.
Before After
Current Home Fair Market Value $ 2,000,000 $ 2,000,000
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Re-Investments in Other FARJHO Transactions __________ $ 1,000,000
Equivalent Home Equity for Potential Appreciation $ 2,000,000 $ 3,000,000
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What about the carry, i.e. netted monthly cash flows between expense and income under the FARJHO transaction?
• A financial arbitrage currently exists as the mortgage rates are still being artificially kept very low.
• Between the current long term fixed rate borrowing cost (e.g. 3% - 4% for a 15-year or 30-year fixed rate mortgage) and
the current market rental yield (e.g. 7% - 12%) there exists a net positive carry of 1% - 5% annually after deducting all
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taxes, fees and insurance cost in favor of the arbitrageurs under a typical FARJHO transaction.
• The cost of the monthly mortgage payments will remain the same for the next 15 or 30 years but the income from
monthly rental receipts will adjust every two or three years and would most likely to go even higher in the current trend.
• The arbitrageurs who take out the cash-out re-finance now could enjoy not only the potential long-term price
appreciation from much expanded home equity, they will also receive a check as additional current income every month.
• The current low fixed mortgage rates may not last forever. A change will be coming and it would be wise to lock it in now.
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The free enterprise capitalism based new home ownership structure FARJHO could let pure profit-driven real estate investors
help other aspiring home owners partially co-own homes through the equity sharing concept without the imprudent use of any
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debt. FARJHO was created back in 2009 as a fair and equitable business method to address the free market needs of both
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joint property investors and aspiring home owners. Through FARJHO , foreclosure will no longer be a possibility going forward.
It will help restore our national economic prosperity, foster the steady growth of our country's housing industry as well as
promote the on-going neighborhood stability and social harmony in local communities throughout our country!
InvestorsAlly, Inc.
FARJHOSM (Flexible And Reversible dba: InvestorsAlly Realty (CA DRE #01523183)
dba: InvestorsAlly Home Loans (NMLS #397242)
Joint Home Ownership) 23 Corporate Plaza Drive, Suite 133
Newport Beach, CA 92660-7912
- A new form of home co-ownership based on the
old equity sharing concept
- No more foreclosure possibility
1-888-456-8881 x 888 *************ECRWSS*****
http://www.InvestorsAlly.com Local
Postal Customer
info@investorsally.com