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This article (the “Article”) is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to purchase any investment or any securities. This Article does not constitute investment advice and is not intended to be relied upon as the basis for an investment decision, and is not, and should not be assumed to be, complete. Readers should make their own investigations and evaluations of the information contained herein. The information contained herein does not take into account the particular investment objectives or financial circumstances of any specific person or entity who may receive it. Each reader should consult its own attorney, business adviser and tax adviser as to legal, business, tax and related matters concerning the information contained herein.  Except where otherwise indicated herein, the information provided herein is based on matters as they exist as of the date of preparation and not as of any future date and will not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after the date of preparation. Certain information contained in this Article constitutes “forward-looking statements,” which can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,”  “target,” “project,” “estimate,” “intend,” “continue” or “believe,” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Readers should not rely on these forward-looking statements.  Certain information reflects subjective determinations which may prove to be incorrect. There can be no assurance that the estimates or projections will be accurate or that historical trends will continue. In considering the prior performance information contained herein, readers should bear in mind past performance is not necessarily indicative of future results. All rights reserved. The material may not be reproduced or distributed, in whole or in part, without the prior written permission of PrimeAlpha LLC.

    • Jul 5, 2019

Home Equity Contracts

Home Equity Contracts

Home Equity Contracts: Innovative equity financing solution for the $32 Trillion Dollar U.S. Residential Market


Home Equity Contracts (HECs) provide a fresh approach to financing in the $32 trillion U.S. residential market, allowing homeowners to monetize their home equity without incurring traditional debt. These contracts enable homeowners to exchange a share of their home's equity for upfront cash, offering an appealing alternative for those who are house rich but cash poor. This method does not require homeowners to sell their property or increase their debt burden.


The market for Home Equity Contracts is expanding, supported by a shift away from traditional Home Equity Lines of Credit (HELOCs) and a growing demand for non-debt financial solutions. Already available in 20 states and expected to reach more, HECs are facilitated by sophisticated data analytics and software platforms that streamline the origination process. As they become more recognized and accessible, HECs are poised to transform into a significant asset class, promising valuable investment opportunities and providing homeowners with innovative ways to leverage their property's value.


Access the full report to explore the transformative potential of Home Equity Contracts in the U.S. residential market. Dive deeper into how these innovative financial solutions provide homeowners with the opportunity to monetize their home equity without the drawbacks of traditional debt. Learn about the benefits for investors, including downside protection and the possibility for substantial returns.



If you do not have a work email address, please email us at info@primealpha.com and we can email you the report directly.



Table of Contents

  • Introduction to Home Equity Contracts

  • Executive Summary - Home Equity Contracts

  • The Market Opportunity

  • How Do Home Equity Contracts Work?

  • U.S. Residential Real Estate – Historical Home Price Data

  • Home Equity Contracts – A New Asset Class

  • Kingsbridge Sees Many Attractive Investment Attributes In Home Equity Contracts




Thanks to our Contributor


Kingsbridge Wealth Management


Kingsbridge Wealth Management, Inc. is a registered investment adviser founded in 2008 that manages the Kingsbridge Alternative Strategies Fund, LP. The Kingsbridge Alternative Strategies Fund, LP, invests in Home Equity Contracts in the U.S. residential real estate market.

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