Unlock Your Home Equity Without a Loan
Sols Lot’s forward sale program lets you tap into your home’s equity by selling a portion of your future home value to investors in exchange for cash today. This is not a loan – there are no monthly payments or interest charges. Instead, you receive an upfront payment, and investors receive a share of your home’s sale proceeds when you sell or if you buy out the agreement. It’s a modern, hassle-free way to access your equity while you remain the homeowner in full control of your property.
Key Highlights of Sols Lot’s Equity Forward Sale
Upfront Cash, No Monthly Payments: Receive cash payments on a weekly distribution schedule as investors purchase your home’s future equity shares (fractional interests). No interest, no monthly principal payments. The agreement settles later—at the time of sale or an early buyout—rather than through ongoing repayment.
Keep Ownership & Control: You remain on title as the sole owner throughout the agreement. There’s no LLC transfer or co-ownership arrangement. You keep all standard homeowner rights—living in the home, refinancing your existing mortgage, etc.
Flexible Term, No Pressure to Sell Immediately: Each forward sale typically has a term up to 1 year (or longer, if agreed). You’re not forced to move out or list immediately. If your home is already on the market, you might prefer a short term (often under six months). If you anticipate a longer timeline, Sols Lot can customize a multi-year term similar to other home equity agreements.
Share Future Gains (and Risks): Investors receive a fraction of your home’s future sale price in exchange for providing you upfront cash. If your home appreciates, they profit alongside you. If it stays flat or declines, their return is lower (or even negative), and you effectively keep more benefit from the initial payout. Special Note: Homeowners are incentivized to use the funds to maximize property appeal and potentially sell for a higher price. However, your final payoff is typically based on the original agreed appraisal (valid for up to 12 months)—unless a majority of Sols Lot investors request a reappraisal. If no reappraisal occurs and the property sells above the original valuation, that does not necessarily change your payoff unless stated in the contract. Conversely, if it sells for less, you or the investors could request a new appraisal for fairness.
No Full Funding Guarantee (Partial Funding Possible): You can list any percentage of your home’s equity, but there’s no guarantee investors will buy 100% of that offering. For example, if you list 15% but only 10% gets purchased, you simply receive cash for that 10%, and the remaining 5% remains yours. You’re never obligated to sell more shares than investors are willing to buy. Additional Option: You can withdraw any unsold portion of your equity at any time if you decide to close out the listing for a lesser amount than originally planned.
Early Buyout Option for Sellers: You are not locked in until you sell. If circumstances change (for example, you wish to keep the home long-term), you can buy out the investors’ shares at a predetermined rate—commonly 1.2× the amount you received—reflecting a 20% premium. This ensures investors earn a fair return while giving you flexibility to reclaim full ownership at any time. Note: The actual return or premium may also be subject to market conditions if specified in your forward sale contract.
Transparent, Fair Valuation: Sols Lot obtains an independent third-party appraisal (and FHA-standard inspection) to determine your home’s current fair market value. That appraised value anchors the forward sale terms. Both you and the investors see this upfront—no hidden valuations. If your property fails the inspection, repairs may be required before proceeding.
Protected by a Performance Deed of Trust: A Performance Deed of Trust (PDoT) is recorded against your title to secure the investors’ interest—this doesn’t affect your first mortgage. It simply ensures that when you sell, the investors receive their agreed portion of proceeds. You retain all remaining equity.
How the Forward Sale Works (Step-by-Step)
Application & Appraisal: You submit an online application at SolsLot.com, providing basic property details. Sols Lot coordinates a third-party appraisal and an FHA-standard inspection (and may also leverage an Agile Evaluation by HouseCanary™). The appraisal fee (and any inspection costs) is typically covered by you, though you can often have this deducted from your final proceeds.
Setting Terms: Once the appraisal is complete, Sols Lot confirms how much equity you can tap—usually up to ~20% of your home’s value, to maintain at least 80% combined LTV. You choose how much cash you want to receive and what percentage of your future sale proceeds you’re willing to sell. For instance, you might sell 15% future equity for $30,000.
Forward Sale Agreement & DACs:
You sign a Forward Sale & Exchange Agreement that spells out:
The percentage sold Term length (deadline to sell/settle) Early buyout option (e.g., 1.2× payback) One-time fees
Sols Lot creates digital shares (DAC NFTs) for your deal. Don’t worry about the technical details—think of it like a simple digital record of your equity sale.
Listing on Marketplace: Your property is listed on Sols Lot’s online marketplace, visible to global investors. The listing includes key details: appraised value, forward sale percentage, property photos, and inspection/appraisal summaries. Investors can review all relevant documents and decide how many shares to buy.
Investors Purchase Shares: Investors purchase DAC tokens in increments, potentially from all over the world. They might buy large or small fractions of your total offering. Assignment & Seller Fee Structure: Sols Lot charges investors up to a 5% assignment fee in a Dutch auction format (at Sols Lot’s discretion). You, the seller, pay a 5% origination fee on all funds you actually receive (similar to a listing fee). This covers underwriting, acquisition costs, and Sols Lot’s platform services. As the tokens sell, Sols Lot (via smart contracts) transfers funds to you (minus the 5% fee).
Receiving Funds: You can choose cash (USD) or USDC on the Base network—whichever you prefer. No combination payout currently offered.
If the entire offering sells out, you receive the full amount you requested (less fees). If only partially funded, you get whatever portion was purchased. You may keep the listing open or withdraw any unsold shares at your discretion.
During the Term – You Stay in Your Home: After receiving funds, you continue living in and maintaining your home just like before. No monthly payments or interest—this is not a loan. Keep up with taxes, insurance, and upkeep to avoid default under the Performance Deed of Trust.
Homeowner Incentive: Often, sellers use these funds to vacate sooner and prepare the home for an optimal market sale, maximizing their final return. “Your next chapter is always better than the last!”
Selling the Home (Settlement Event): When you eventually sell (whether in a few months or a few years), the escrow/title company sees Sols Lot’s PDoT and requests a payoff.
Important: The payoff may be calculated using the final sale price or the final appraised value—depending on contract clauses, investor requests, or homeowner requests. If the investor majority requests a reappraisal (and it’s higher), the payoff might be adjusted upward. If the home sells below the original value, the homeowner might request a new appraisal for potential adjustment downward.
Escrow deducts the investors’ share (per the forward sale agreement) and sends it (often via stablecoin) to investors automatically. You receive the rest of the proceeds minus any usual selling costs like realtor commissions. Everything is handled seamlessly in escrow—no need to manually pay each investor.
End of the DealOnce the sale closes and the investors are paid, Sols Lot releases the Performance Deed of Trust.
If the property sold for more than the original appraised or agreed amount (with investor request for reappraisal approved), you typically pay investors a higher dollar amount but still keep the majority of your extra gains. If the price is at or below appraisal, investors might just break even or even lose some of their stake.
Either way, the equity-sharing arrangement ends at that point, and you move on free and clear.
What If You Don’t Sell by the End of the Term?
Most forward sale contracts have a clear end-date (e.g., 6–12 months, or up to 10 years for some agreements). By that time, you should either:
Refinance/Buyout: You can buy out the investors’ stake for an agreed-upon price—often 1.2× what you received, or based on a new appraisal, per contract terms. Paying this off releases the lien, and you regain 100% equity going forward.
Extend or Renew: (Case-by-Case)Sols Lot may allow an extension, but it’s not guaranteed. You’d likely need updated terms or a fresh forward sale. Sometimes, new investors come in to fund an additional forward sale, rolling over the existing contract. The old one is settled, and a new agreement begins.
Forced Sale as Last Resort: If the term ends and you neither sell nor buy out the forward contract (with no extension in place), Sols Lot has the right to enforce a sale or foreclosure—similar to a lender if a loan was due. This scenario is extremely rare. Sols Lot’s underwriting ensures most homeowners have a clear plan to close or extend by term’s end. Recommendation: Always consult a local real estate professional on these option agreements to understand the best approach for meeting your timeline.
Fees and Costs to the Homeowner
Sols Lot strives for a transparent fee structure with no hidden costs.
Origination Fee (5%): You pay a one-time 5% fee on all funds you actually receive from investors. If you raise $50,000, 5% ($2,500) goes to Sols Lot. You net $47,500.
Appraisal & Processing Fees: You cover the property appraisal and inspection. Typically $300–$600 (varies). Title/escrow or other setup fees may apply. These can often be deducted from your proceeds so you have minimal out-of-pocket expense.
Secondary Market Fee: (Investor Side) Sols Lot charges up to 5% assignment fee (Dutch auction) on the investor side when they purchase your DAC tokens. If investors trade these tokens among themselves later, Sols Lot may also charge a 1% marketplace fee on those secondary trades. This generally does not affect your net proceeds directly.
No Interest or Monthly Charges: Because this isn’t a loan, there is no accruing interest. If selling takes longer, you don’t owe anything extra over time.
Realtor Commissions: (Separate from Sols Lot) If you hire a real estate agent to sell, you’ll pay commissions and closing costs in the normal way. Investors’ share is typically calculated on the gross sale price before realtor commissions.
Early Buyout Example
Forward Sale: 10% of your home for $40,000.
Early Buyout: If you decide in 2 years not to sell, you can buy back that 10% stake by paying 1.2× ($48,000).
Result: Investors get a 20% gain; you regain 100% ownership with no further obligations.
This lets you remain in the home without eventually needing to sell. Precise buyout terms can vary; sometimes updated appraisals are used. Sols Lot spells out these details in your contract so you can plan accordingly.
Settlement Scenarios:
Let’s assume:
Appraised Value: $300,000
Forward Sale: 10% for $27,000 upfront (Investors pay $27K for what is projected to be $30K at sale—essentially a 10% discount). You net $25,650 after a 5% ($1,350) origination fee.
Here are three hypothetical sale outcomes:
Sale @ $300,000 (No Market Change): Investors’ share: 10% = $30,000 Their profit: $3K (compared to $27K paid) You: $270,000 (minus realtor fees), plus you already received $27K up front.
Sale @ $330,000 (Market Up 10%): Investors’ share: 10% = $33,000 (a $6K profit from $27K) You: $297,000 (minus realtor fees) + $27K prior = $324K total. You share some upside, but keep the majority.
Sale @ $270,000 (Market Dipped): Investors’ share: 10% = $27,000 (they break even, ignoring fees). You: $243,000 (minus realtor fees) + $27K prior = $270K total. In this scenario, the investors assume part of the loss on that equity portion.
Important Clarification: Sometimes, the payoff is triggered by a final appraisal instead of the actual sale price. This can be used if the property sells far above or below the original valuation—an investor majority or homeowner might request a new appraisal to validate the updated value. The final settlement process is always spelled out in your contract with Sols Lot.
Homeowner Responsibilities & Key Points
Continued Maintenance & Obligations: Keep taxes, insurance, and basic maintenance up-to-date. Failure to do so can breach the contract, resulting in penalties.
No New Liens Without Notice: Typically, you can refinance your first mortgage freely (Sols Lot will remain in second position), but cash-out refinances or additional liens need approval. “We will not subordinate” is the standard stance—always confirm with Sols Lot.
Selling/Refinancing Triggers Settlement: If you sell within the term, or do a major cash-out refinance, you must settle the forward sale. For refinancing scenarios, consult Sols Lot about any conversion contracts or equitable conversion rules that apply.
Communication is Key: Sols Lot provides an online dashboard, support channels, and an AI chatbot to help you. If you want to exit early, have questions, or experience life changes affecting your plans, reach out to Sols Lot for guidance.
Tax Implications: Since you’re receiving an advance on future equity (not a loan), it’s generally not considered immediate income. However, please consult a tax professional for confirmation specific to your situation.
Risk & Discount Model: If your home appreciates strongly, the investors share in that upside. If it drops, they may face a partial or total loss on their portion—so they price in a risk discount. Evaluate whether selling this future equity (and paying the discount + fees) is worthwhile for your financial goals.
Comparison to Traditional Options: HELOCs, cash-out refis, and reverse mortgages involve monthly payments and interest or strict age limits. Selling your home outright means moving immediately.
Sols Lot offers non-debt liquidity and flexibility—giving you cash now while letting you remain in the home.
Conclusion: Is Sols Lot Right for You?
Sols Lot’s forward sale product is a modern, flexible way to monetize home equity. It suits homeowners who:
Need cash for big goals (renovation, college tuition, debt consolidation, etc.) but don’t want debt or monthly bills.
Plan to sell in the near-to-mid future and want part of their sale proceeds now (e.g., bridging to a new home).
Accept sharing future upside in exchange for immediate funds. If you expect major appreciation but have no urgent cash need, holding 100% equity may be preferable. Otherwise, letting investors share the risk can be advantageous.
By leveraging blockchain (DAC NFTs) and a novel legal structure (Performance Deed of Trust + Forward Sale Agreement), Sols Lot streamlines fractional home equity investment. For you, it’s similar to a specialized real estate transaction:
List a portion of your home’s future value,
Get cash weekly as shares sell,
Settle when you sell or buy out early.
If this resonates with your financial and personal timeline, contact Sols Lot for a personalized assessment and appraisal. Compare it with your other options. Many homeowners have already used Sols Lot to access equity quickly and easily—while remaining in full control of their property’s next chapter.
Disclaimer: This guide is informational. Consult legal, tax, or financial advisors to ensure you understand the contract fully before proceeding. Sols Lot is not a lender and does not offer legal or tax advice. Terms, fees, and conditions are subject to change based on your location, property type, and underwriting results.