In today’s episode of the Notorious Interview, I talk with Jarred Kessler, Founder & CEO of EasyKnock, the most interesting company in our space I had never heard of. I corrected that oversight, obviously, and I thought you should too.

EasyKnock is hard to classify: it’s kind of like a blend between a bridge loan lender and an iBuyer with a rather intriguing value proposition for sellers and for real estate agents alike. Basically, EasyKnock will buy your house at your asking price, rent it back to you, while you look for a new house with the cash in your pocket, then settle up at the end. Its fees are substantially lower than a market maker like Zillow or Opendoor, and there is an interesting (although a bit tricky) value proposition for the real estate agent.

It’s hard to describe more than that, so you should just listen to the Interview.

Conversation with Jarred Kessler, EasyKnock

Bio of Jarred Kessler, :

Jarred Kessler is a vision-driven entrepreneur with over fifteen years of experience in the financial services industry, where he performed for industry stalwarts such as Morgan Stanley, Credit Suisse, and Goldman Sachs. Throughout successful endeavors with these companies, Jarred witnessed firsthand the effects of technological change on the industry. Where others failed, he became adept at evolving his career to align effectively with emerging trends. Since then, Jarred has spotted similar changes occurring in other industries. As CEO of EasyKnock, Jarred now applies this sharp awareness of change and his vision of a new and improved world to real estate.

About EasyKnock:

“We exist to create financial opportunities out of financial pressures, bringing flexibility and freedom to homeowners through innovation and understanding.”

OUR MISSION

Life is fluid, and many times unexpected. People find themselves navigating new and unexpected roads needing to adjust their finances to accommodate these changes. Whether starting a new business, sending kids off to college, paying down debt, our products empower people to make meaningful life decisions on their terms while remaining in the comfort of their own home. We want homeowners to achieve the financial freedom they deserve.

WHAT WE DO

Our Sell & Stay product offers an alternative method of accessing home value to traditional home equity line of credits (HELOCs) and reverse mortgages without the challenges associated to qualify. Sell & Stay is the first product in the USA allowing homeowners to sell their home, accessing the money they need and remain in their home as a tenant. People have the ability and flexibility to repurchase their home or move at any time, releasing the full value of their home.

WHY WE DO IT

Millions of Americans are property rich, but cash challenged. As a result of the credit crisis, lenders have strict requirements that disqualify homeowners from refinancing. Without viable alternative options, homeowners are forced to sell their homes and move. People deserve the chance to establish financial stability. We created Sell & Stay to provide homeowners with a new way to access their home value, without having to move, or who aren’t ready to move.

Discuss in the VIP Lounge

Want to talk about this Interview with other VIP members? Join the Notorious VIP Lounge. If you’re not registered in the Lounge, just request to join right from the site. Lounge is a free community for all VIP Subscribers.

-rsh

One Response

  1. Rob, I think Jarred misunderstood your suggestion that his service fee “washes” some or all of the listing fee when the home eventually sells. I base that on two things: (1) the fact that he said he’d never contemplated your suggestion and (2) what he says at the end: “We [Easy Knock] are giving full commissions”.

    If I understand him, he signs a traditional listing agreement with the Realtor that brings the customer. The Realtor is willing to defer that commission until the Easy Knock home sells because her immediate goal is to get her client into a new home and, if EK can solve her “inertia” problem, get paid immediately on her clients’ home purchase.

    A 6% full commission plus his 2.5% service fee would appear to be 21% more in soft costs than Zillow’s 7% service fee in a homogeneous market (assuming the remaining components of an iBuyer’s offer as ceteris paribus). As you have pointed out many times, any needed repairs are needed regardless of who demands them – an iBuyer or the selling broker – and holding and carrying costs are rarely considered when comparing an iBuyer’s offer.

    By changing legal status from an owner to a renter, the EK client loses his homestead exemption and converts deductible ad valorem and mortgage interest payments to nondeductible rent payments, correct? I assume EK deeds the home back to the client at the closing table and that the client deeds to the ultimate buyer to maintain the tax-free status of the remaining 20% gain, but I couldn’t find that answer on the website. If EK is the grantor, their client pays income tax on all that gain.

    Easy Knock appears to provide a great option for a certain segment of the market. However, without a thorough apples to oranges comparison, I’m just not sure it’s accurate, given full commissions and loss of owner status, for Jarred to categorically state that clients will net more under the program than with a really good iBuyer . Since some people may prefer apples (an iBuyer) and some may prefer oranges (becoming a renter), I would think that would be a great detailed comparison to offer consumers.

    Thank you for continuing to introduce us to the thoughtful ways folks are trying to close the loop and eliminate pain. Easy Knock appears to be a valuable contributor to that important effort.

Comments are closed.