Selling Your Property: Outright vs. Equity Sharing Agreement vs. Cash-Out Refinance
When it comes to selling your property, there are a few different options to consider. You can sell outright, enter into an equity sharing agreement, or get a cash-out refinance. Each option has its own advantages and disadvantages, so it's important to weigh your options carefully before making a decision.
If you're considering selling your property, here are a few things to keep in mind:
If you sell your property outright, you'll receive the full amount of the sale price. However, you may have to pay capital gains taxes on the sale, depending on how much profit you make. And, if you have a mortgage on the property, you'll need to pay it off in full before you can sell.
Equity Sharing Agreement
An equity sharing agreement allows you to sell a portion of your equity in the property to another party. You'll still retain ownership of the property, but you'll need to split the profits (or losses) with the other party. Equity sharing agreements can be a good option if you're not ready to sell outright, but you want to access some of the equity in your property.
A cash-out refinance allows you to take out a new loan against your property. The loan amount can be used to pay off your existing mortgage and any other debts you have against the property. You'll be left with cash in hand, but you'll also have a new mortgage to pay off.