How Clay Used His Equity to Diversify His Portfolio

Clay, a California homeowner, was exploring ways to use his home equity to reach a number of financial goals — including paying off debt and diversifying his portfolio.

“In today's interest rate environment, I was really looking for options that were not going to penalize me with substantial cash flow payments just to cover the interest on a home equity loan, cover debt and expenses, and continue investing in my property — as well as invest and put this money to work in the market,” he explained.

He did a deep dive into the choices, looking at both their product offerings and company reviews before taking the leap.

“It’s a big decision to take equity out of your home for a cash investment today,” he said. “And I spent the appropriate amount of time — probably more than most — researching not just the process, the pros and the cons, but the companies that provided the service like Hometap. Not only are the reviews outstanding for Hometap, but as I really dug into the specifics of each of their competitors, I saw a differentiation with Hometap.”

Ultimately, Hometap came out on top for him due to the lack of monthly payments, since it freed up cash for him to put toward other expenses.

“Hometap really provided a flexible option that, in my situation…it was the right move,” he said. “I'm glad this company is available to consumers and able to provide solutions that prevent you from having to expend significant cash flow each month and be smart with using your equity to drive additional investments in other areas across your financial portfolio.”

Once he began the process of tapping into his equity, he was paired with his Investment Manager Keith, who guided him through the experience from beginning to end and answered any questions he had along the way.

“Clay had a lot of plans on how he wanted to utilize his home's equity from debt payoff to investing to renovations and Hometap’s product structure — the flexibility it allows — I think is what ultimately really led to Clay having a confident decision to use Hometap,” Keith said.

Clay appreciated the patience and straightforward communication from his Investment Manager throughout the process. “Keith, who I worked with…from day one was extremely professional, not overbearing whatsoever, communicated very well and appropriately,” he recalled.

Now that he’s received his Investment funds, Clay has gained some peace of mind in an unpredictable time and is looking forward to taking the next steps toward reaching his goals.

“You know, the investment funds from the equity in my home are really going to give us a lot of breathing room as we enter some economic uncertainty and in the next few years, [we’re] undoubtedly so unsure what rates are gonna do,” Clay said. “So this allows me to create a cushion to make good decisions and capitalize on market opportunities outside of my home equity — which will continue to appreciate — and free up cash flow within my personal income and other resources that help fund my family. So all in all, I think it's going to give us a strong footing to live the life we want to today and continue to save and prepare for the future.”

If you could benefit from accessing your equity to reach your goals, find out if you qualify for a Hometap Investment. It only takes two minutes.

*Disclaimers: This homeowner was compensated for providing Hometap with an interview about his Investment experience.