For millions of people, homeownership is the foundation of the American dream. Beyond providing a place to call home, it’s key to achieving long-term financial goals. However, accessing home equity — the value of the home minus the remaining mortgage balance — traditionally has required homeowners to rely on home equity lines of credit, home equity loans, or refinancing. In some cases, they face strict financial hurdles to qualify for these financial products. However, companies like EasyKnock have introduced alternatives that make converting equity and freeing up cash easier for homeowners.

Founded in 2016 by former Wall Street professionals and headquartered in New York City, EasyKnock is a home equity solutions and real estate technology company. EasyKnock provides homeowners with customized nonloan programs designed to give them ways to convert their home equity without the need to sell and move or take on more debt, particularly in a higher rate environment.

The company's range of products and services offers alternative ways to buy and sell homes, and convert home equity. They are designed to make it easier for homeowners to convert equity to pay down debt, strengthen financial footing or for use in other ways, such as starting a small business or going back to school.

Sell & Stay by EasyKnock

In 2023, EasyKnock rolled out its suite of flexible financial solutions, namely its sale-leaseback programs. Traditionally a popular commercial real estate strategy, sale-leaseback is a transaction where a company sells its property and then leases it back, so they get cash upfront but can keep using the space. EasyKnock applies this idea to residential real estate, allowing homeowners to sell their property but stay as renters. And because EasyKnock is not a lender, customers need not worry about increasingly strict qualification requirements of traditional solutions like  home equity lines of credit or home equity loans.

In the Sell & Stay program, EasyKnock purchases the home for its full appraised value, giving homeowners up to 75% of the appraised value in cash, and the remainder  in a Sell & Stay option contract. Customers can stay as renters, paying fair market rent, for up to five years. At any time during those five years, the option contract allows them to buy the house back or direct EasyKnock to sell it on the market.

If the customer decides to repurchase the home, their option contract allows them to do so at a discount, regardless of the home’s value appreciation. If the homeowners direct EasyKnock to sell the home and the value of the home has increased, the customer captures all applicable appreciation.

EasyKnock’s Home Buying and Relocation Solutions

EasyKnock’s MoveAbility program is designed for homeowners who plan to relocate or buy a new home within the next year. In this case, EasyKnock buys the home and leases it back to the homeowner, allowing them to convert up to 75% of the home equity into cash with the remainder in the MoveAbility Option.  Customers often use those funds  for the down payment, closing costs, or other expenses related to purchasing a new home.

In the MoveAbility program, the homeowner remains as a renter for up to 12 months. It provides immediate access to equity, removes home sale contingencies, and solves timing challenges including needing to time the market or find short-term housing and multiple moves. When ready, the customer directs EasyKnock to sell the home on the open market and where the customer is able to capture all future appreciation.

In both programs, EasyKnock sets itself apart with its commitment to fair pricing. The company uses independent third-party appraisals to make sure that homes are bought at fair market value. This helps avoid the common practice among institutional buyers of underpricing homes for quick profits.

EasyKnock is clear about its role in the housing market: Unlike some entities that acquire properties primarily to convert them into rental units, EasyKnock's model is all about helping homeowners convert their equity while being able to stay in their homes and communities they love.

Strategic Partnerships and Growth

EasyKnock's growth has been boosted by teaming up with strategic partners and getting support from investors. The company has had several funding rounds that brought in large investors like Northwestern Mutual Future Ventures and QED Investors. This support has helped the company grow and offer more tailored financial solutions to its customers.

The company recently partnered with iHeartMedia in an initiative to expand EasyKnock's market reach through TV, radio, and digital media, connecting with a broader audience and educating homeowners about its unique products.

EasyKnock collaborates with lenders and mortgage brokers who often encounter potential borrowers that don't meet the strict criteria for conventional mortgages, such as having a low credit score or an unfavorable debt-to-income ratio. When a borrower fails to qualify for a mortgage due to these reasons, lenders can refer them to EasyKnock as an alternative solution.

Similarly, EasyKnock works with real estate agents and brokers to address one of the biggest challenges in the home-buying process: needing to sell an existing home before buying a new one. Many homeowners need to sell their current property to free up equity for a down payment on a new home or to avoid the financial stress of handling two mortgages at the same time.

Acquisitions and Market Positioning

One of EasyKnock’s objectives is to be recognized as an equity release platform. In 2023, the company made strategic acquisitions to enhance its service offerings and market positioning. The acquisition of Onder, a Seattle-based home maintenance firm, allows EasyKnock to extend offerings beyond financial solutions to include essential property upkeep, which alleviates the financial burdens faced by homeowners due to home maintenance, and it increases the value and appeal of homes in its programs.

The purchase of Ribbon, which specializes in real estate cash offer solutions, enabled EasyKnock to streamline home sales for clients, facilitating quicker and more competitive transactions in fast-paced markets.

Further expanding its portfolio, EasyKnock also acquired Balance Homes, a company that provides innovative home equity co-ownership solutions. This diversified EasyKnock's financial options by introducing a co-investment model that attracts a broader demographic. These acquisitions not only enhance EasyKnock's direct services; they also position the company to provide a wide range of solutions for evolving market needs.

EasyKnock’s Programs Meet Diverse Financial Needs

EasyKnock's advancements are part of a broader trend of diversification and innovation within the home equity solutions market. With more homeowners facing economic challenges, there's a rising demand for flexible and customized financial products. EasyKnock's home equity solutions were developed in response to these needs.

While home equity loans, lines of credit and refinancing remain popular, the market is shifting toward customer-centric solutions. EasyKnock's non-loan programs illustrate this trend, with a focus on flexibility and personalization to meet diverse financial needs.

EasyKnock's pioneering approach helps with immediate financial needs and also offers long-term benefits by providing sustainable and flexible ways to manage home equity. As homeowners look for more innovative ways to leverage their home equity, EasyKnock’s role in the market is prime for growth, transforming the future of home equity solutions.