Overview of How REMARQ Works
REMARQ is an alternative finance marketplace, which makes equity capital available to homeowners and aspiring homebuyers, sourcing such financing through its network of private investors and investment funds.
Unlike mortgage debt supplied by banks and other lenders, our approach is to reduce the use of debt, which requires monthly payments, including possibly mortgage insurance, and which is a fixed obligation regardless of the price movement of the home. Our equity financing approach positions the investor to participate in home price movement, both increases and decreases, and is supported by a fractional ownership interest in the property or as an option contract on the price movement.
In determining whether a transaction is to be pursued, REMARQ conducts thorough retrospective and prospective analyses of the property and the homebuyer/homeowner. Since price movement drives the ultimate return to REMARQ investors, the Company has engaged some of the leading data and analytic firms, which assess current property values as well as forecasted values over a three- to five-year period. Utilizing dozens of factors and proprietary analysis, REMARQ will structure a proposal for the homebuyer/homeowner, which will include the level of equity participation required for the amount of money desired by the homebuyer or homeowner. REMARQ has standardized its investment/financing agreements, which govern the relationship between its investors and the homebuyer/homeowner, delineating the terms, conditions, responsibilities, legalities and actions to be taken upon certain events, such as the sale of the property and/or investment interest, improvements made to the property, and defaults to any existing debt on the property.
After the transaction is consummated, REMARQ continues to periodically assess current and forecasted values of the property, with updated data and information provided by its analytic partners. This reporting initiative enables its investors to keep abreast of investment values, as well as serving as the foundation for investors to resell their positions back into the REMARQ exchange to other participating investors, thus monetizing such positions independent of a property sale or refinance. Further, as part of its commitment to a data-rich marketplace, REMARQ will be providing comparative analysis between property markets and their respective performance.