General

This sounds too good to be true. What's the catch?

1. Most things in life aren’t a win-win, but we believe we’ve created one. Millions of homeowners locked in historically low interest rates between 2017-2021. That rate is GOLD. Let’s capitalize on it together. If you have a great home with a fixed low rate, we built a way to turn it into a wealth-generating asset where both sides truly win.

We’ve spent two years developing a financial structure that allows you to keep ownership upside while also accessing the full equity you need today—without taking on debt or paying extra costs.

2. We’re not some faceless corporation looking to gobble up rental properties. We’re here to bring wealth back to the middle class. Our CEO, Kyle, saw this firsthand when his dad sold their family home for $585,000—knowing it would appreciate, but needing all the cash equity to move. That home is now worth twice as much. If a model like Bonus had existed back then, his dad could’ve accessed liquidity without giving up future upside. Kyle’s wheels started turning. The wealthy are not forced to sell appreciating assets when they move because they do not need the homes' equity in order to move—they have options. The middle class, on the other hand, need to cash out their equity when they move either to put that money toward a new home to qualify or handle personal matters. That doesn't seem fair.

A majority of homeowners in America are forced to follow a fractured system that forces them into one solution - "you want to move - you must sell the asset that will undoubtedly be worth more in the future". That "sacrifice" doesn't give the middle class many options for creating wealth, at the same time satisfying what they need today.

‍This isn’t just about money—it’s about fixing a broken system.

How does Bonus Homes determine their cash offer?

At Bonus, we aim to provide you with investment proceeds that match what you would receive if you sold your home on the open market. Our investment amount (i.e. our “cash offer”) is unique to each home, which considers a variety of factors that include, but are not limited to, home value, homeowner equity, current mortgage payment, and rentability of home. It's important to note that each Bonus investment is different, just like every home is different. If you're interested in seeing if Bonus is a fit for you, contact us today!

How does Bonus make money?

There are three ways we make money.

1. In exchange for cashing out your equity, Bonus Homes shares a percentage of your property’s future equity (as you, the homeowner, shares the remaining portion).

2. Because We've turned your home into a rental, while also handling all financial responsibilities of your property, Bonus Homes is collecting the rent. Most of this rent is used to satisfy all financial obligations with the remaining going to Bonus to cover all operating costs.

3. Bonus Homes has a standard transaction fee that will be seen on your presented offer.

What types of properties can qualify to become a Bonus home?

Currently, Bonus Homes invests in detached single-family homes that are primary residences, rental properties, or investment properties with interest rates at or below 4.25%. Unfortunately, townhomes, condos, manufactured homes, and commercial properties are not eligible for investment at this time. Because our investment criteria may change in the future, please follow us on social media to get notified when our qualification criteria changes.

View our map to see all the locations where Bonus Homes currently operates.

Since I still own the home, do I have responsibilities for any issues that arise while it’s a rental that Bonus manages?

No, Bonus handles everything associated with the home, which includes maintenance, placing tenants, collecting rent, and any other unforeseen costs. We will never return to the homeowner to ask for money for repairs or maintenance on the property once we have taken it over.

Any claims that arise on the property are typically covered by insurance, which Bonus will be paying. If there are claims beyond the insurance coverage, Bonus will be responsible for the claims. In other words, if a catastrophic event occurs on the home, Bonus will cover.

After a home has been bonused, what are the assurances that the home and expenses are being covered?

After the owner moves out, Bonus takes over managing the property, making all payments related to the costs of the home (mortgage, taxes, insurance, HOA, etc.). We guarantee that all the payments are made on time per our agreement. Bonus also handles all aspects of property management, including tenant placement, repairs, and maintenance, so the owner doesn't have the burden of being a landlord. As partners—who have made a significant investment in the home by cashing out the equity—we aim to ensure that the property is always well cared for and we honor our contractual obligations.

Is this a loan?

Bonus Homes does not offer or provide loans. We invest in homes. Thus, there is no interest rate, an APR, monthly payments, annual payments, or surprise payments. By investing in your home and cashing out your equity, Bonus will receive an appreciation percentage upon a later sale. Further, we are not a bridge loan, wrap mortgage, subject to or seller financing.

What happens to the home if something happens to Bonus’ business?

We don’t like hearing this question, but we believe in full transparency, and always strive to give our members and prospective partners the most clear answers. Bonus is backed by some of the country’s most successful and respected investors who have provided the capital for Bonus to be able to partner with our homeowners in these homes. In the rare case that Bonus was forced out of business, those investors must still honor the terms and their contractual obligations of the agreement we made with our members simply because it’s their capital that remains in the homes of our members. At this point, the investors would be brought in to continue the contract obligations with new points of contact. Rest assured, nothing changes with the stipulations of the contract and nothing changes regarding the involvement of our Bonus Homes members. You still do nothing, but will be notified of the specific next steps regarding the continuation of fulfilling the agreement.

What happens if the house is underwater financially?

It’s not uncommon for the housing market to fluctuate, but history shows that real estate, over the long-term, goes up—making the risk associated fairly minimal. Should the home depreciate during your agreement with Bonus, we’ll likely suggest allowing the market to settle and rebound before selling. Because Bonus is covering all the expenses—making it easy for you to hold onto your home for longer—small market fluctuations become less impactful, similar to how it’s not suggested to liquidate your 401k when the stock market dips a smidge. And don’t worry, there will never be a situation where Bonus forces the homeowner to sell the property if it’s under water.

What type of insurance is on the property while it’s a rental?

Since the homeowner still owns the home and Bonus is managing their property, the current homeowner’s insurance in place on the property will be converted to a landlord policy (which protects the homeowner)—this is typical for rental properties across the country. All insurance premium costs are covered by Bonus. Any claims above the insurance coverage are covered as well. In addition, all tenants are required to carry a Renters Policy.

Any scenario where the homeowner will be left to have to jump in and take over the rental?

No. Throughout the partnership, Bonus maintains full responsibility to manage the property. And to reiterate , no surprise costs are incurred by the homeowner.

What is the 5-year holding period?

Also known as “Bonus and chill,” the 5-year holding period refers to a clause in our agreement with homeowners. Why five years? This time period typically allows the home to appreciate to a value that benefits the customer and Bonus. The agreement states that the homeowner can only sell the home during the first five years of Bonus managing your home with the prior written consent of Bonus. After this 5-year holding period, the homeowner may sell the property. But, the homeowner can also hold onto their investment longer. Our goal for all our homes is to give them enough time to realize appreciation gains.

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Homeowners

If I Bonus my home, who owns the property?

The short answer is you own the home. After closing with Bonus, you remain the owner of your home and the only one on the title. We provide you with cash in the form of an equity payout in exchange for a percentage of your home's future appreciation and the right to rent the house for a set period of time. This equity payout  is recorded as a lien position on the property, which will be removed when you sell your home or choose to buy back our initial payment. We are managing and optimizing your home for maximum future value on your behalf.

What happens if the value of my home goes down during the partnership with Bonus?

It’s not uncommon for the housing market to fluctuate, but history shows that real estate, over the long-term, goes up—making the risk associated fairly minimal. Should the home depreciate during your agreement with Bonus, we'll likely suggest allowing the market to settle and rebound before selling. Because Bonus is covering all the expenses—making it easy for you to hold onto your home for longer—small market fluctuations become less impactful, similar to how it’s not suggested to liquidate your 401k when the stock market dips a smidge.

Can I buy back Bonus’ investment in my home?

Of course. You can end your Bonus Owner Agreement at any point after the 5-year holding period by buying back Bonus’ investment. The calculation and payment amount to Bonus is just like what would happen if you sold the home in the future, but since there is no actual sale the home value will be determined by an independent third-party appraisal. Please note, since your home will likely have a tenant during this time, we'll need to act in accordance with state laws.

What happens when I decide to sell my home?

This is the part where you get a check like you “inherited” it. As it were, ideally your home has appreciated to your liking and you want to cash in—awesome, that’s why Bonus exists. After the 5-year holding period, and up to 30 years, you can sell your home any time. Throughout our partnership, we'll be monitoring home values and market trends that will provide insights into determining when it’s a good time to sell and take your share of the profits. Whenever you choose to sell, you'll need to notify Bonus of your plans. Please note: The home cannot be sold for less than a minimum future sale value agreed upon at the start of our agreement.

Why do I need an in-home evaluation?

Good news, you won't need to have a lengthy and cost-incurring appraisal to bonus your home. A simple and efficient home evaluation is all we need. Our evaluation team will inspect your property to gather the info we'll need to verify your home is what we'd consider to be in good rental condition. If any repairs are needed, they’ll be identified during the evaluation and completed before a tenant moves into the property. Unforeseen repairs may affect the final offer.

Will partnering with Bonus impact my ability to get a mortgage on my next home?

Not at all. Because your current home will be turned into a rental property, lenders can offset payment obligations (i.e. principle, interest, taxes, and insurance) on the rental. In addition to providing you with the proper documentation, we’re more than happy to hop on a call any time with your lender to answer any questions during the approval process. We've already partnered with some of the largest mortgage lenders in the country who are also happy to help you find the right loan, if you Don't already have one. As a side note, before Bonus Homes existed, homeowners were able to turn their primary residences into a rental, provided they lived in the home for more than a year. Bonus uses this same practice—that homeowners have used for decades—of turning an old home into a rental and then getting a mortgage on a new home.

Do I have to move after I receive funds from Bonus Homes?

To date, it is standard practice for Bonus members to move out within 30 days of signing the agreement. At this move-out period, final funds will be distributed. But we know that every situation is different, so we do our best to be as flexible as needed for our members. For example, some Bonus members have a home that won't be complete for 2-3 months, while others are ready to move ASAP. We will always do our best and work with you upfront to ensure your agreed-upon move-out is as stress-free and seamless as possible.

Do I have to pay taxes on the Bonus Investment I receive?

Because we're not tax professionals, we cannot give tax advice and we do suggest consulting your tax advisor. We've worked with several tax attorneys and accounting firms to see how bonusing your home could qualify you for a similar tax treatment as if you sold your home. For example, you may qualify for the Section 121 exemption ($250,000 for single and $500,000 for married) if you have lived in the home for two of the last five years.  To date, multiple Bonus members have been able to leverage the Section 121 exemption after bonusing their home. Of course, we’re happy to speak directly with your tax professional to answer any specific questions.

Does it cost anything to bonus my home?

The good news is that bonusing your home costs less than selling your home. The only cost that Bonus charges to the homeowner is a small transaction fee. Other pass-through, third-party costs are similar to selling a home, which could include title and escrow services and your listing agent’s compensation.

What is the process to bonus my home?

We've tried to make the Bonus process simple, straightforward, transparent, and FAST. We work to have everything done, from start to finish, in as little as two weeks. Remember, there is no need to stage or show your home, nor will you need an appraisal. Check out our fast-and-easy process in detail.

Wouldn’t it be easier to sell my home the traditional way?

No, and it’s not even close. We designed the Bonus model to provide homeowners with a better, faster, and more financially lucrative option than selling. Agents also find this as a better solution for their clients versus the traditional sales process.

- Don’t have to deal with a buyer

- Don’t have to spend money and time staging

- Don’t have to leave their homes on the weekends to show

- Can close in as little as two weeks or when it’s most convenient for them

- Still receive a full cash equity payout based on their home’s market value

As an example, if a homeowner’s new home won’t be ready for 1-2 months, they don’t need to move into a temporary home—they can simply stay in their current one and move on their terms, not their buyers’. Our goal is to keep the process as simple and easy as possible.

Can I line up the closing of a new home purchase while working with Bonus on the current home?

Yes! Bonus can work with the lender to set up a simultaneous closing on the new property with the Bonus funds. We do this every day.

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Agents

Wouldn't it be easier to sell my client’s home the traditional way?

No, and it’s not even close. We designed the Bonus model to provide homeowners with a better, faster, and more financially lucrative option than selling. As an agent, you know that selling a home and buying a new one never sync up properly. With Bonus, homeowners:

- Don't have to wait to find a buyer
- Don't have to spend money and time staging
- Don't have to leave their homes on the weekends to show
- Can close in as little as two weeks or when it’s most convenient for them
- Still receive a full cash equity payout based on their home’s market value

As an example, if a homeowner’s new home won't be ready for 1-2 months, they Don't need to move into a temporary home—they can simply stay in their current one and move on their terms, not their buyers’. Our goal is to keep the process as simple and easy as possible.

As the listing agent, am I still compensated?

Yes! Bonus Homes does not interfere with you receiving your agreed-upon compensation. Like a traditional sale, your compensation will be deducted from your client's Bonus equity payout. This transaction is paid out through escrow.

Does Bonus Homes have internal real estate agents?

No, we do not have any real estate agents at Bonus.

When my client wants to sell their home in the future, who will serve as the selling agent?

While it’s entirely up to your client whom they want representing them in their future real estate transaction, Bonus will direct them back to the original agent from the original Bonus transaction first. We will also work with our agent partners to keep them in the loop on the home throughout our management.

Can I line up the closing for my client's new home with Bonus?

Yes! Bonus can work with the lender to set up a simultaneous closing on the new property with the Bonus funds. We do this every day.

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