Unique Programs

April 10, 2018

The Equity Funding Instrument (EFI™) has many uses. In our previous posts, we have explored home purchase, equity access, and home refinancing. These three primary applications are designed for consumers who either want to purchase a home, access home equity or refinance. The EFI™ however, is not just a tool in the hands of consumers but it is also designed to help employers and endowments maximize their impact with their employees and donors, respectively.


Let’s take the example of a corporation situated in an expensive housing market, and employee average commute time in excess of an hour. It is not uncommon for employees and their families to live long distances from the workplace, mainly due to the prohibitively high housing costs in the area where they work. It is also not hard to imagine that being in the car for so long every day is detrimental to the employee’s quality of life, and it’s likely to show at the workplace; a tired and stressed employee can't be as productive and effective in the long term, after all.


By working with EquiFi, corporations can solve this challenge for their workforce. Employees who have shown value and commitment through their performance can be rewarded with a special benefit, in the form of the Equity Funding Instrument (EFI™). The employer co-invests with the employee through an equity advance from EquiFi. The corporation holds on to the EFI™ as an investment for a short period of time before EquiFi finds a long-term investor. Thanks to the additional down payment source, the employee can now afford a home closer to the desired area and greatly improve his circumstances.


Now let’s take look at the example of a university endowment fund. Donations from alumni are vital to the continued prosperity and optimal operation of higher education institutions. In times of financial stress, or during economic downturns, donors are less prone to donate. Although they still want to donate, alumni may feel constrained and limited by their current options.

Endowments can use EFI™’s as an alternative fundraising tool for those alumni interested in sharing some appreciation of their homes, instead of donating liquid assets. EFI™s can also be used as means to provide tuition assistance for first in family scholarships and grants. This asset allocation strategy not only offers a funding solution that doesn’t require out of pocket expense or interest but can also potentially generate larger gifting amounts than through traditional methods.


As you can see, the EFI™ is a versatile equity tool that can solve challenges for consumers, as well as institutions. Besides providing funding to home buyers and homeowners, and unlocking the financial capacity of illiquid assets, the EFI™ can be used as a strategic agent among corporations and endowments. Additionally, its evergreen structure promotes the re-utilization or recycling of funding that is virtually self-sustaining. Homeownership through the EFI™ is an expansive and dynamic opportunity that can be used for many different objectives. Our one goal that sums it all is that we want our customers to live in their ideal home and live their ideal life, whatever way they can, just because they can. Thanks so much for reading! As you already know, we’ll be here next week waiting for you!

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Author of the Post

Laura is a member of the EquiFi leadership team.



Wealth Creation

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