Equity investment provider based in San Diego, CA Splitero Expanded to two new states, Colorado and Washington. The move marks the beginning of the relatively new company’s broader ambitions to provide a way for homeowners to leverage their equity without assuming additional debt.
The company is committed to achieving what CEO Michael Gifford describes as a “methodological” approach. The problems facing the mortgage industry in particular are not necessarily felt in the shared equity investment business.
“I think in any time of uncertainty, people are generally trying to work out cash flow first and foremost,” he says. “We have products that don’t have monthly payments and aren’t often dynamically priced in line with Fed rate hikes. It certainly gives homeowners less choice. Our product has no income limit, allowing homeowners to access equity in their homes without DTI requirements.”
It also comes down to trading volume, Gifford said.
“The mortgage market does well when transaction volume is high, whether it’s buying or refinancing,” he says. “There are a lot of homeowners who don’t want to sell right now because they have low mortgages for whatever reason. They don’t want to sell because they don’t know what they’re going to buy. Rent is still really high.”
and interview This summer, Gifford said the prospect of partnering with a reverse mortgage firm to place borrowers who may not be eligible for either product is an attractive prospect. Now, he says those partnerships are starting to take shape.
“was there [some progress]’ he says. “We have a few small partners right now, but they are slowly getting into that space and expanding their core business. , unqualified or out of line, or wanting to qualify [seek out] another option. We are happy to work with Licensed Entrepreneurs. ”
That said, while Splitero and products like it don’t have an age limit, Gifford said older people are usually natural advocates due to the amount of wealth they’ve built up at home.
“There are many seniors in that category who reach out because: [fixed income challenges],” he said. .”