Episode 73: Landlord Tax Deferral and Fractional Home Ownership with Frank Rohde
Summary
Do you have a wonderful tenant who you would love to sell your house to, but you know the tenant does not have the down payment? Even though they make great income, this tenant would likely not qualify for a first-time home loan. As a landlord, is there a way the tenant can buy the home from you and defer some taxes? There is a way! Frank Rohde of Ownify joins me today and explains fractional home ownership for first-time home buyers, all while helping landlords defer paying some taxes.
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Welcome back to the show, everyone! Dr. Jen here, excited to dive into today's topic with Frank Rohde, an innovative entrepreneur tackling major issues for first-time homeowners through fractional home ownership. Today, we're exploring how this method can significantly ease the path to owning a home.
The Birth of Fractional Home Ownership
Frank's Journey
Frank, originally from Germany and a seasoned veteran in the mortgage industry, saw a critical barrier for first-time buyers and decided to innovate a solution through his new venture, Unify. This platform allows individuals to buy a home fractionally, bypassing the hefty initial costs associated with traditional home buying.
How Unify Works
Fractional Purchase Explained
Unify challenges traditional home buying by eliminating the need for debt. Buyers can purchase "bricks" or fractional shares of a home and increase their ownership over time while residing in the property. This model simplifies entering the housing market, especially for those hindered by high down payments and interest rates.
Benefits for First-Time Buyers
Competing with Cash Buyers
One significant advantage of Unify is facilitating all-cash offers for homes, which are more appealing to sellers and can outcompete other market buyers, including large private equity firms known for converting homes into rentals.
Potential for Landlords
Tax Deferral Opportunities
For landlords, Unify presents a unique opportunity to transition from managing properties to passive investment through a 721 exchange—a tax deferral mechanism allowing property sales proceeds to be reinvested without immediate tax liability.
Looking Ahead
Expansion and Accessibility
Frank plans to expand Unify's innovative purchasing model across various U.S. markets, aiming to assist 100,000 people in achieving homeownership within the next decade. His model not only facilitates buying homes but also fosters a community of invested homeowners who care for their properties long-term.
Frank's insights today highlight a transformative shift in real estate, focusing on accessibility and sustainability for first-time buyers. For more fascinating discussions on overcoming the challenges of today's housing market, stay tuned! And don't forget to check out more resources at mylifeasalandlord.com.