How Customers Are Integrated Into the EasyKnock Experience

Newsflash: Unbeknownst to you, you may be in a trapped equity crisis. Since the pandemic, home values have skyrocketed, and as a result, homeowners have accumulated a staggering amount of home equity. According to recent data from the Federal Reserve, U.S. homeowners collectively hold nearly $32 trillion in home equity. This translates to an average of around $300,000 in equity for each homeowner with a mortgage. 

While this represents an incredible amount of potential wealth, many homeowners are also grappling with record-high levels of credit card debt, totaling $1.13 trillion by the end of 2023. This makes it difficult for homeowners to utilize their equity through conventional means, such as mortgage refinancing or home equity line of credit options, which have strict debt-to-income ratio requirements. Selling the home is another way to tap into equity, but many homeowners aren’t ready to leave their residences or may not be financially prepared to purchase another place. As a result, there’s a growing demand for alternative solutions that allow homeowners to leverage their home equity. 

Never fear, EasyKnock, a home equity solutions platform, is here. Co-founded in 2016 by a former Wall Street professional, it’s the first company to bring the sale-leaseback service, traditionally a transaction reserved for commercial properties, to residential homeowners. Sale-leaseback, as the name implies, is a transaction in which an owner sells a property, then the buyer leases the property back to the seller. This is useful when the owner needs quick cash to cover a down payment on another property, debt payments, or other expenses. 

In addition to sale-leaseback, EasyKnock plans to offer a variety of services, including home equity investing and co-ownership, to ensure that each homeowner can find a solution tailored to their particular needs. When homeowners turn to EasyKnock for help, the company remains committed to keeping them informed, engaged, and supported throughout the entire process.

The EasyKnock Customer Experience

EasyKnock integrates customers into their sale-leaseback programs through multiple touchpoints, with a focus on transparency and ongoing support. The EasyKnock process is broken down into three steps: 

Step 1. Get Qualified: EasyKnock’s customer-focused approach begins with an initial inquiry, in which homeowners reach out to learn more about what the enterprise offers. The company helps each homeowner looking to realize value out of their equity through a personalized consultation with an EasyKnock specialist. During the initial contact, homeowners provide details about their home and financial situation. EasyKnock performs a basic check to make sure the customer has enough consistent income to pay rent. Unlike lenders, credit scores and debt-to-income ratio aren’t determining factors for qualification.

This first touch point is designed to understand a homeowner’s needs and determine the solution that would work best for them. EasyKnock’s specialists take the time to explain the benefits and logistics of their programs, such as Sell & Stay for customers who may want to eventually repurchase their home and MoveAbility for those who are planning to move or purchase another home.

Step 2. Sign, Close, and Get Your Cash: Following the initial qualification, EasyKnock guides sale-leaseback customers through a traditional real estate closing process, which typically takes about four to six weeks and includes standard steps such as home appraisal and inspection. EasyKnock purchases the home for 100% of the fair market value based on an independent appraisal. Throughout this time, EasyKnock keeps homeowners updated and informed about the process.

Once the home is officially sold to EasyKnock, the homeowner receives the agreed-upon cash payment. With the sale complete, the homeowner becomes a tenant, and their lease with EasyKnock begins, allowing them to remain in their home while enjoying the benefits of the converted equity.

Step 3. Stay in Your Home: Sale-leaseback customers continue to live in the houses as renters, giving them time and flexibility to decide on their next steps. EasyKnock serves as their landlord and handles maintenance and repair of the home. In cases where a residence has some deferred maintenance, EasyKnock says it works with the tenant to remedy those issues.

The period of time that customers spend as renters is determined by their program agreement. MoveAbility customers can rent for up to 12 months, while Sell & Stay customers can rent for up to five years. During the rental period, customers can direct EasyKnock to sell the home on the open market. Sell & Stay customers have the option to repurchase their homes when they’re financially ready. Customers remain involved in the repurchase or open market sale and can even choose their own real estate agent to facilitate the sale.

Strategic Acquisitions to Enhance Customer Experience

In recent months, EasyKnock made several acquisitions to expand its line of products and services. For those who prefer alternatives to the sale-leaseback products, EasyKnock’s extended product line includes home equity investment, a flexible mortgage alternative, and home co-ownership. The company maintains the same customer-centric focus throughout these programs. 

Ribbon: Ribbon was acquired by EasyKnock in July 2023, and its RibbonCash product provides homeowners with cash to purchase another home, helping them to make appealing offers in a competitive market. Customers start by submitting a preapproval, then Ribbon provides a home valuation and rent estimate. If a buyer’s financing falls through, Ribbon steps in to purchase the home. The buyer then has up to 210 days to secure the funding and repurchase the house at the original price, paying rent only for the days needed.

Balance Homes: A home equity co-ownership platform, Balance Homes was acquired by EasyKnock in December 2023. The Balance product offers EasyKnock customers an alternative to traditional homeownership by replacing the lender with a co-owner. After assessing a homeowner’s situation, Balance pays off their mortgage and high-interest debt in exchange for an ownership share of the home. Homeowners receive a cash flow to help reduce monthly debt payments and rebuild their credit. Homeowners stay in their residences with the option to sell, move, or return to a traditional mortgage at any time. 

HomePace: Acquired in May 2024, HomePace is a home equity investment company. The HEI product offers homeowners a new way to utilize their home’s equity without taking on additional debt or monthly payments. HomePace provides cash upfront in exchange for a share of the home’s future value. HomePace invests in the abode alongside the homeowner, sharing gains or losses when they choose to sell. 

Additional Customer Resources

Understanding that many homeowners initially reach out to EasyKnock because they are in difficult financial positions, the firm has formed strategic partnerships to provide resources that help customers secure a stronger financial footing.

Piñata: In April 2024, EasyKnock announced that it partnered with Piñata, a popular credit-building and loyalty rewards platform. This allows EasyKnock customers to access a platform that rewards tenants for on-time rent payments. Piñata’s program helps customers build credit by reporting on-time payments to the major credit bureaus and offers motivating rewards that can be redeemed for everyday purchases. The program has proven highly effective, with participating customers seeing an average credit score improvement of 57 points within the first few months. 

FinLocker: In June 2024, EasyKnock announced another strategic collaboration with FinLocker, a financial readiness platform that provides customers with tools to manage their finances more effectively. Through this partnership, EasyKnock customers get free access to FinLocker’s lineup of tools, which includes personalized budgeting, financial goal-setting, credit tracking, and guidance on achieving mortgage readiness. These tools are particularly helpful for customers planning to repurchase their home from EasyKnock or buy a new property.EasyKnock’s commitment to empowering homeowners is proven by the company’s well-rounded approach to offering various flexible solutions. By prioritizing a smooth and transparent transaction for each customer, enhancing customer support with additional tools, and enhancing its product line to help different customer needs, EasyKnock allows homeowners to navigate financial challenges while remaining in control of their homes