For those wishing to invest in real estate without the hassle of rental management, this is the perfect answer. The investor puts money in the fund for a minimum of five years. At the close of five years, the investor is repaid the investment and collects the interest in the form of an equity share based on A ratio of the resale price and the amount borrowed from the investor pool.  Moreover, the investor may decide to extend his/her investment for a minimum of one year at a time.

Typically, a property is held for the length of an agreed-upon term. As the term reaches its end, homebuyers can follow one of three common routes: the investment fund is bought out through a refinance; the home is sold; or the relationship is renegotiated and continued. In all cases, both sides will have earned equity on their investment.

As title to the homes transfer from the homebuyers, investors can cash out their investment on a first-come-first-serve basis. After all notes are paid, and the homeowner gets credit for any cash spent refurbishing the property an administrative fee of 10 percent is deducted, the remaining equity will be will be calculated based the afore mentioned ratio. The cost of any upgrades made by the homebuyer that were pre-approved by the Shared Equity Program will be reimbursed based on the market increase, assuming there is one, and the equity share will be made on the balance.