Become a homeowner.
Find your dream home, move in now, become an owner on day one. We match you with a passive SFR investor. Co-ownership redefined using equity financing – no mortgage debt.
A Smarter way to become a homeowner
Own a home with 3% down – skip the bank
Lower Monthly Payment
Only pay market rent vs. traditional mortgage payment that includes PMI.
No Debt
We are providing a bridge to tradtional financing. Use our equity finacing versus a mortgage or as a bridge during the 5-year term.
Build Wealth
Become an owner on day one – share in equity appreciation. This is not a rent to owner model – you are an owner!
How we helps home buyers
Cleardoor is an innovative property platform that connects home buyers to a pool of investors, enabling them to join together and purchase a property. Debt free and interest free.
We Match Investors With Real Estate
Our investors provide home-buyers equity financing through fractional ownership.
No Mortgage - Equity Financing
No interest rate, no APRs, no monthly mortgage payment of any type for home-buyers.
Retain 100% Occupancy
Home-buyers retain 100% occupancy rights – third-party investors are passive acquiring fractional ownership. You pay rent on the portion (percentage) of property you do not own.
Mission Driven
We are comitted to helping first time home-buyers access residential homes through fractional ownership.
Your Path to Homeownership with Cleardoor
Apply in Minutes
Get prequalified for a home-shopping budget. It’s free, there’s no commitment, and you’ll receive a Cleardoor pre-qualification letter.
Start Viewing Properties
With your budget in hand, go shopping for your new home (with a Cleardoor agent or your own). You will make an all-cash offer, no mortgage debt financing. You put down 3% and the investor funds the difference.
Move-in
You are an owner on day one and will pay an occupancy fee for a period of five years. At the end of the five years, you can take out the investor, sell your interest or potentially extend the term.
Cleardoor’s Equity Financing – Reduce Your Cost of Homeownership
Cleardoor was created to make homes more affordable while presenting performing single family rentals (SFR) investment opportunities to our third-party passive investors. Our platform connects prospective home buyers with investors where we use equity financing versus traditional mortgage debt. Unlike rent-to-own models, our model makes our customers a homeowner on day one through co-ownership! Furthermore, we efficiently manage our investors’ investments through our fully vertically integrated operations to include in-house property management.
Lower Monthly Payment
No Private Mortgage Insurance (PMI)
Low 3% Down Payment
Equity Financing vs. Mortgage Debt
Fannie Mae conforming mortgage; 8% mortgage interest rate, PMI, purchase price of $500,000, 3% down. Cleardoor equity fiancing. No interest expense, no PMI and $3,000 per month occupancy fee.
SFR Investor Benefits
Effortlessly invest in Single Family Rentals (SFR) and capture rental income and appreciation
Performing Assets
Performing owner-occupied retail SFRs with mutual interests aligned.
Stable Yields
Stable income from lower turnover, market rates, and equity upside.
Lower Costs
Lower property preservation – smart-home enabled.
We provide a customized solution for asset acquisition
We provide a customized solution to identify SFRs that meet your investment objectives. Our investment team at Cleardoor will work directly with you to present exclusive performing SFR opportunities in your respective markets. You purchase 97% of the property and receive market-rate lease payments for 5 years while realizing equity appreciation – relationship governed under an operating agreement. The remaining 3% is owned by the occupant (co-owner), who has the right, but not the obligation to buy out your interest at the end of the term. We handle the property managment and issue quarterly dividends.
What Our Customers Are Saying
Cleardoor’s model would provide us with a viable option to purchase a home for our family. With 3% down allows us to become owners on day one while only paying a market rate rent during the initial term will be game changing.
As an investor, Cleardoor would mimimize tenant turnover, provide an above market yield with lower property maintenance costs. We look forward to participating as an investor in our respective markets.
We are excited to partner with Cleardoor! We take an agnostic approach to sourcing SFR assets for our portfolio and their model aligns with our commitment to deliver our LP’s above market returns.
Partner with us.
At Cleardoor, we are empowering home buyers with an equitable solution through affordable financing. Therefore, we invite all federal, state, and local housing and financing programs to collaborate. This can include impact investors, Community Development Financial Institutions (CDFIs), housing authorities and other partners.
Innovative solution to the housing crisis.
Work with Cleardoor to drive homeownership across all demographics.
Invest in communities and homeownership.
The social benefits of homeownership are invaluable.
Enable all households to create equity and build wealth.
On average, homeowners have 40x more net worth than renters.
Frequently Asked Questions
Do I remain the homeowner on the deed?
Yes, you remain on the deed with full occupancy rights.
Cleardoor equity financing versus a a traditional mortgage
Unlike traditional mortgage financing, you do no thave debt from a lending institution. Rather, you have investors that are providing equity financing – you pay rent for the portion of the property you do not own. For example, if you put 5% down, you pay 95% of market rental rate.
How do I qualify?
Home-Buyer
You have at least 5% for a deposit of the purchase price, property is a single family residential home and it will be used as your primary residence.
Existing Homeowner
Ideally, you’ll have a percentage of equity in your home of at least 40% and ultimately, the market will dictate interest in a property. The home must be your primary residence (owner occupied) and is being maintained – it can not be rented out to a third party. Investors are looking at condition, owner profile, and local market conditions to assist in determining expected price appreciation of a property. There are several sources (i.e. Case Shiller, Core Logic, etc.) in the market that provide guidance on regional prices, although these equity purchases are asset specific.
Who is responsible for taxes and maintenance?
Home-Buyers
Investors pay the taxes and insurance. You are responsible for the monthly rent payments on portion you don’t own while still being an owner.
Existing Homeowners
You are responsible as the primary owner and will receive all tax benefits.
Are there monthly payments?
No, there is no debt! Therefore, you only make rental payments equivalent to the amount of your equity financing. For example, if the full monthly rent for the home you are purchasing is $2,500 and you put 5% down towards the purchase, you’d pay 95% ($2,375) of the monthly market rent.
Can investors access my home?
No, you have full occupancy rights and investors are treated as a co-owner under the equity participation agreement.
How are funds transferred?
Funds are transferred through a bank wire. When you make your investment to purchase an equity interest in an owner-occupied property, the money is wired and held securely in an independent FDIC insured escrow account at Bank of America. Once the target has been met, the money is transferred towards the purchase price closing.
How is the value determined
We use an alternative valuation method (AVM) and licensed residential home appraiser, which is done prior to closing. A seller can post a home with their estimated market value (EMV) and with an AVM, you may be eligible for an apprisal waiver.
AVMs are statistically based computer programs that use real estate information, such as comparable sales, property characteristics, tax assessments, and price trends, to provide an estimate of value for a specific property.
What type of properties are available?
This program sources performing single-family properties across the U.S. We work with each investor individually to identify their geo preference and property type (i.e., detached, 3 BD, 2.5 BA, no pool, etc.).
Are we investing in a fund or individual SFR asset?
As an investor, whether an SFR fund, retail or institutional investor you purchase individual properties on Cleardoor.
How is the relationship governed?
There is an operating and management agreement in place that governs the relationship.
Who manages the lease payment distributions?
Through our platform, we collect and manage the lease payments during the five year term. Payments are made quarterly to investors, net operating expenses.
How does an investor make money?
An investor makes money through home price appreciation and by receiving rental payments. By purchasing an equity interest in your home, they secure the right to share in the price appreciation while receiving rental payments.
While Cleardoor will make every effort to source the SFR investment opportunities displayed on our website, we can’t guarantee the condition of the property, the truth or accuracy of any third-party reports, statements, or valuations, or that any particular property represents a sound or advisable investment opportunity. All single family residential investments are susceptible to substantial risks, including local, state and national market conditions, undisclosed or unknown property conditions, environmental hazards, and disasters, zoning or land use changes, and other risks of loss. Real estate investors who purchase the right to acquire real property through Cleardoor’s platform assume the entire risk of their investment, and are advised to independently investigate and verify the truth, completeness, and accuracy of all information regarding the property.