How Does the SAM Work?
The SAM is a fixed rate, fixed term loan that can run up to 30 years. In exchange for a lower interest rate, you agree to give up a portion of the home’s future value — the difference between what it’s worth now and what it will be worth then. The interest rate is reduced depending on how much of the property’s appreciation you bargain away. For example:Standard 30 Year Fixed Rate Mortgage: 8.00% SAM w/20% Appreciation given to investor: 7.50% SAM w/30% Appreciation given to investor: 7.00% SAM w/40% Appreciation given to investor: 6.50% SAM w/50% Appreciation given to investor: 6.00% (Note that the actual appreciation share/interest rate breaks may differ from this example.) Any increase in the value of the home will be split with your mortgage lender if you refinance, move (paying off the loan in the process) or otherwise terminate the loan. Say you buy a home valued at $100,000. After three years, you decide to move; your home has appreciated by $9,273. In a 50% revenue-sharing arr
