Helping Homeowners Access Trapped Home Equity with Jarred Kessler of EasyKnock

How EasyKnock is Revolutionizing Home Ownership: Insights from Jarred Kessler

Introduction

In the modern landscape of home ownership, many Americans face significant barriers to accessing the equity in their homes. Traditional lending practices often leave a substantial portion of homeowners without viable options. Jarred Kessler, CEO and co-founder of EasyKnock, has set out to address this issue with innovative financial solutions. This article delves into EasyKnock's approach, its impact on homeowners, and Kessler's insights into the future of real estate finance.

What is EasyKnock and How Did It Start?

What Problem Does EasyKnock Solve?

EasyKnock was founded to provide homeowners with flexible financial solutions that traditional lenders do not offer. With approximately 50% of the U.S. population unable to qualify for traditional mortgage financing due to low FICO scores, there is a significant "trapped equity" problem. EasyKnock allows homeowners to convert their home equity into cash while staying in their homes.

How Did Jarred Kessler Transition from Wall Street to Real Estate?

Jarred Kessler's journey from Wall Street to founding EasyKnock is unique. After spending 20 years in financial services at top firms like Goldman Sachs and Morgan Stanley, Kessler noticed a gap in the real estate market. Motivated by a desire to have a tangible positive impact on people's lives, he founded EasyKnock to provide financial flexibility and prevent homeowners from losing their homes due to financial hardship.

How Does EasyKnock Work?

What Are EasyKnock's Key Products?

1. Sell and Stay: This flagship product allows homeowners to sell their home to EasyKnock and lease it back. Homeowners receive up to 75% of the home's value in cash upfront and can buy back their home or sell it at a later date. They also benefit from any appreciation in the home’s value.
2. MoveAbility: Designed for homeowners looking to buy a new home, this product provides the financial means to do so without the need to sell their current home first. Homeowners can sell their home to EasyKnock, get the cash they need for a new purchase, and rent their old home until they move.
3. ReLease: This product is for homeowners who want to sell their home and maximize their cash without the intention of buying back the home later. They sell to EasyKnock and continue to rent until they are ready to move out.

How Does EasyKnock Ensure Fairness and Transparency?

EasyKnock operates with a strong focus on transparency and customer experience. Homeowners receive fair market value for their homes, pay market rent, and have control over the sale process. EasyKnock aims to provide a non-predatory alternative to traditional reverse mortgages by ensuring that homeowners benefit from any appreciation in their home's value and by maintaining a low eviction rate.

Why Do Homeowners Choose EasyKnock?

What Makes EasyKnock's Mission Unique?

EasyKnock's mission centers around providing homeowners with options that maintain their dignity and financial stability. The company helps homeowners who might otherwise face foreclosure or be forced to sell their home under duress. EasyKnock’s solutions are particularly valuable in times of financial crisis, such as during the COVID-19 pandemic, when many homeowners faced unexpected financial challenges.

How Does EasyKnock Measure Its Impact?

EasyKnock uses several metrics to measure its positive impact on homeowners:

• Eviction Rate: EasyKnock has maintained an eviction rate significantly lower than the national average, demonstrating their commitment to keeping people in their homes.
• Customer Satisfaction: The company boasts a high customer satisfaction rate, with many homeowners appreciating the flexibility and support provided.
• Credit Score Improvement: By paying off mortgages and providing financial stability, EasyKnock helps homeowners improve their credit scores.

How Did EasyKnock Navigate Funding and Growth?

What Challenges Did EasyKnock Face in Raising Capital?

Raising capital for a business like EasyKnock, which relies heavily on balance sheet strength, presents unique challenges. Traditional banks are often cautious and require significant traction before offering competitive terms. EasyKnock overcame these barriers by securing initial funding from an angel investor who understood the business model and saw the long-term potential.

How Did EasyKnock Scale Its Financial Operations?

EasyKnock's growth involved a multi-stage process:

1. Initial Funding: Securing initial investments from high-net-worth individuals and family offices.
2. Bank Partnerships: Establishing credit facilities with banks as the business demonstrated traction.
3. Multiple Credit Facilities: Partnering with multiple banks to diversify and increase available capital.
4. Securitization: The ultimate goal is to securitize the debt, which would significantly lower the cost of capital.

What Can Entrepreneurs Learn from EasyKnock's Journey?

How to Overcome Funding Challenges

Entrepreneurs can learn from EasyKnock's approach to finding investors who understand and believe in their vision. It's crucial to be resourceful and persistent, often requiring numerous pitches before finding the right partner.

The Importance of Mission-Driven Business Models

EasyKnock’s success highlights the importance of a mission-driven business model. By focusing on the social impact of keeping homeowners in their homes, EasyKnock has built a brand that resonates with customers and investors alike.

FAQs

What is EasyKnock's Core Offering?

EasyKnock provides financial solutions that allow homeowners to access their home equity without moving out. Their products include Sell and Stay, MoveAbility, and ReLease.

How Does EasyKnock Ensure Fair Treatment of Homeowners?

EasyKnock offers transparent terms, fair market value for homes, and ensures homeowners benefit from any appreciation in their home's value. They also have a low eviction rate and high customer satisfaction.

How Did EasyKnock Secure Funding?

EasyKnock secured initial funding from a supportive angel investor and later established credit facilities with banks. The company aims to move towards securitization to lower its cost of capital.

What is the Impact of EasyKnock's Solutions?

EasyKnock helps homeowners stay in their homes, improves their credit scores, and provides financial stability. The company measures its impact through customer satisfaction, eviction rates, and credit score improvements.

How Can I Learn More About EasyKnock's Mission and Products?

For more information on EasyKnock and their innovative financial solutions, visit their main website at Interplay. If you're looking for an incubator to support your startup, check out our incubator program. To listen to more insightful podcasts, visit our blog.

By embracing innovative financial strategies and maintaining a strong focus on their mission, EasyKnock is transforming the way homeowners manage their equity and stay in their homes.

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