Recently venture capitalist Marc Andreesen announced that he will invest in Point, a startup that believes it is the solution to American's struggle with having most of their wealth tied up in their homes. MarketWatch staffer Andrea Riquier reports on the startup, which offers a simpler mechanism for getting wealth out of your home than home equity lines of credit, which require interest and don't allow home owners to diversify investments.
In return for some of your equity, Point benefits if your home appreciates and gets paid back if your home depreciates. In spite of risk, investors see potential in Point:
Yet Weiss and Andreessen Horowitz both envision their products gaining the critical mass to move beyond one-off agreements between investors and individual homeowners into what the latter calls a “broad basket” of homes. “It’s rethinking the fundamentals of residential real estate ownership — making single-family residential real estate a liquid, tradeable asset class,” the venture capitalists wrote.