What Nada Does
Nada is a WealthTech platform (nada.co) unlocking access to the $20T+ of untapped home equity in America. Its platform makes it possible for retail investors to own a piece of a top city’s home equity market for as little as $100 (“Cityfunds”) and for homeowners to sell some of their equity for cash in as little as 7 days.
The Current Landscape
The core product for Nada is the Home Equity Investment, or Homeshare. The Nada platform connects investors who are looking to purchase home equity and homeowners who are looking to sell some equity for cash now.
Several factors have contributed to the growth in Homeshare popularity:
1. Golden Handcuffs: The current landscape includes thousands of homeowners locked into very low mortgage rates on their current home, effectively producing golden handcuffs. As homeowners are hit with the reality of staying long term in their current home, they are choosing to access equity to perform upgrades and improving cashflow during high inflationary times by eliminating debt.
2. Investor Interest: Institutional investors and venture capital firms showed increased interest in the HEI market, providing additional funding and credibility to the industry.
3. Tech-Enabled Platforms: The emergence of tech-enabled platforms made it easier for homeowners and investors to connect, streamlining the application process and facilitating investment transactions.
Company Evolution
Nada launched in 2019 as a real estate services and mortgage company. The company launched as the brainchild of John Green who spent a decade in the mortgage industry managing a broken system and identifying opportunities to dynamically challenge exclusive big bank access. Two years later, Nada released its Cityfunds offering – a fractional real estate fund that allows all investors to join for as little as $100.
The Solution
Nada's unique model is addressing this two-sided problem with a single platform designed to unlock the home equity market for both homeowners and real estate investors through two products: Homeshares and Cityfunds.
Homeshares: With Nada's Homeshares product homeowners can now cash out their home equity without adding the burden of new debt or monthly payments. Rather than selling their home or turning to high interest debt like unsecured loans or credit cards, homeowners now collect their equity in cash in just a short two weeks. In exchange for the upfront cash paid to the homeowner, Nada is granted a lien-secured interest in the home's future value. When the homeowner wins, Nada wins. As their home appreciates in value so does Nada’s co-investment.
Nada sells these Homeshares to Cityfunds, enabling investors in Cityfunds to tap into the equity upside of homes in the nation's top real estate markets.
Cityfunds: Nada's Cityfunds product has created an entirely new way to own residential real estate in the best cities across the US. Cityfunds were inspired by the transformation we saw in the equities market with thematic ETFs. We recognized the opportunity to deliver this type of thematic and targeted exposure to the largest asset class in the world -- real estate. Each Cityfund owns a diversified and city- specific portfolio of Nada's Homeshares.
By eliminating the need for banks and their high fees, Nada has created zero interest products and become the hero for co- investment communities.
Check it out : https://www.nada.co/
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