Abby Connolly
Many parents believe that after their children graduate from college, they’re on their own and will have to pay for their own housing and living expenses.
However, the cost of living and the housing markets these days are insane, and some young people need help building themselves a foundation.
One man agreed to help his two children with the down payments on their ideal houses, except instead of simply loaning them the money, he wants equity in their purchases.
Although he’s not an extremely wealthy man, he does work hard and makes around $200,000 a year. He has a lot of money saved up and, in the past, has used it on things he wants, like old cars to restore.
His kids have recently graduated from college and are ready to purchase homes but have been struggling to do it on their own.
“My kids approached me about help getting a house,” he said.
“If they can go into a purchase with 25% down, they can save on fees and get a better rate.”
He agreed to give his kids what they would need for a 25% down payment on their houses but expected equity in the purchases.
For instance, instead of simply handing over 1/4 of the price of the house, he would essentially be investing in the house and would get 1/4 of the profits when it’s sold.
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