How EasyKnock Stands Out in the Marketplace

In a real estate market that’s often fraught with financial hurdles, EasyKnock has carved a unique niche in the home equity solutions space. The company was founded in 2016 by finance industry veterans who witnessed firsthand how the post-2008 recession and housing crisis created even higher barriers for homeowners seeking to access their hard-earned equity. Traditional lending products had become increasingly inaccessible due to tighter guidelines, leaving many homeowners unable to tap into their home equity. The founders saw an opportunity to apply the concept of sale-leaseback, traditionally used in commercial real estate, to the residential market. This approach provides homeowners with an alternative way to convert their home equity, offering immediate liquidity without the need for traditional loan qualifications.

Innovative Sale-Leaseback Model

At the core of EasyKnock’s success is its sale-leaseback model. This model allows homeowners to sell their homes to EasyKnock and continue living in them as renters. Unlike traditional home equity loans or lines of credit, this arrangement doesn’t require homeowners to meet strict credit or debt-to-income requirements. This product is particularly beneficial for homeowners who don’t qualify for traditional home equity loans or lines of credit due to various financial constraints.

Instead, EasyKnock focuses on the home’s value and the homeowner’s ability to pay rent. Its sale-leaseback programs offer immediate liquidity, enabling homeowners to convert their equity without the burden of monthly mortgage payments or the risk of foreclosure.

The sale-leaseback program addresses a critical need in the market by providing an alternative to lending products, which often exclude homeowners with less-than-perfect credit or unstable income. EasyKnock’s method democratizes access to home equity, allowing more homeowners to benefit from their property’s value.

Diverse Program Offerings

EasyKnock offers two primary programs designed to meet the various needs of homeowners. Each program is tailored to provide flexibility and financial stability.

Sell & Stay: The flagship program, initiated in 2018, allows homeowners to sell their homes to EasyKnock and remain there as renters for up to five years. They have the option to repurchase their homes or move whenever they choose. This is ideal for those who need immediate liquidity but aren’t ready to move.

MoveAbility: Launched in 2019, this program is designed for homeowners looking to sell their current home and buy a new one or relocate. With MoveAbility EasyKnockpurchases the home, clears the existing mortgage and gives customers cash needed for their next home. Customers can lease their home for up to 12 months, which removes the stress of timing the sale of a current home with the purchase of a new one.

EasyKnock’s Competitive Edge

Unlike rival companies that operate on a localized basis, EasyKnock operates on a national scale, serving homeowners across the United States. The company has expanded its team to over 100 members, with employees living across 27 states. As a result of its geographical expansion, the company experienced approximately 200% customer growth between 2020 and 2021.

In addition to rapid growth and expansion, operating nationally provides the company with the opportunities to address region-specific real estate trends and provide tailored solutions that are responsive to each local market. For example, trends during the pandemic saw significant shifts in homeowner preferences, with many seeking larger living spaces for remote work and living, or moving to different states. EasyKnock was able to adapt to these changing needs, providing liquidity solutions that allowed homeowners to capitalize on rising home values or fund necessary home improvements.

Comprehensive Customer Support

EasyKnock’s customer-centric approach is evident in its commitment to providing stress-free solutions and continued support. From the initial consultation to the completion of the sale-leaseback process, EasyKnock provides clear and detailed information about how the model works, the financial implications, and what homeowners can expect at each stage, answering any questions and offering ongoing assistance even after the transaction is complete.

The organization also sets itself apart by facilitating customer empowerment and flexibility. Its programs are designed not to turn homeowners into lifetime renters, but rather to provide them with options to manage their financial situations effectively. EasyKnock takes careful consideration of the customer’s ability to rent and repurchase their homes. While the company emphasizes that it’s not a credit counselor or debt consolidator, their efforts to improve the financial standing of customers often result in improved credit profiles. By reporting on-time rent payments to credit bureaus and providing cash to pay off debts, EasyKnock plays a pivotal role in helping customers enhance their credit scores and overall financial health.

Expanding the Equity Release Platform

Looking ahead, EasyKnock aims to expand its suite of equity release solutions. Recognizing that the sale-leaseback model might not suit everyone, EasyKnock acquired Home Pace, a home equity investment company, in December 2023. This addition will introduce a product line that allows homeowners to sell a portion of their home equity rather than the entire property. Homeowners can sell a small percentage, say 10% or 20%, of their home equity, providing them with the necessary liquidity without the burden of monthly payments.

This new product is financially structured differently from the traditional sale-leaseback model and comes with distinct underwriting guidelines. While it may be more suitable for different types of customers, the goal remains to find the right equity release product for each customer’s unique situation.

The Future of Home Equity Access

As the first company to introduce the sale-leaseback model to the residential market, EasyKnock stands out, offering homeowners immediate liquidity without the complexities of traditional financing options. By focusing on flexible, customer-centric solutions, maintaining a national reach, and consistently adapting to market changes, EasyKnock provides reliable and accessible financial options to a diverse homeowner base. EasyKnock’s seamless financial experience is redefining how homeowners can access their home equity. This groundbreaking approach democratizes access to home equity, providing viable options to help homeowners unlock their home equity with confidence and peace of mind.