There are no specific limitations when choosing your home other than it must be in Move-In Condition. Homes with unique features or marketability issues may not qualify or require a larger initial equity contribution.
At any time before the partnership purchases your home, you can back out of an Alliance. There are no penalties, but a prospective Member will have been required to pay for certain costs associated with creating an Alliance. Depending on when a prospective Member backs out, some or all of these costs may not be refundable.
Fleq considers many factors before determining a Member's required initial equity contribution. These factors include, but are not limited to, your credit history, current income to projected rent and the cost of the home to be purchased.
There is no minimum credit score and credit score is only one of a number of factors (including but not limited to prior rental history, criminal background check, rent to monthly income ratio, etc) that Fleq reviews before forming an Alliance with a potential Member.
An Alliance has no set time frames. Although the lease will have finite duration, it contains automatic renewal provisions, which could extend for as long as the Member wishes it to do so. So as long as the Member has not sold the home, provided notice to Fleq that they wish to terminate the lease, or are in default under the lease or the operating agreement, an Alliance can last indefinitely.
Your monthly payment includes amounts for rent and for normal ownership expenses. Rent is paid only for the portion of the home you don't own. Conversely, you only pay ownership expenses on the part of the home you do own.
Each year the partnership's home will be valued by Fleq. The value of the home divided by the number of partnership equity units will create the purchase price for the units. This price is then locked in for the next year.
In addition to having the option to sell the home, if the Member wants to start a new Alliance on a new home, you can transfer the equity in your current home to your new home. Fleq will take back your current property eliminating the pain and hassle of needing to sell a home.
You do not have to consult with Fleq before selling the property. However, Fleq has a right of first refusal on any agreed upon sales price. If a Member consults with Fleq prior to the sale, Fleq may waive its right of first refusal as long as the sale price is above an agreed upon floor value.
If a Member fails to pay rent, the Member may be evicted under the terms of their lease. If a Member fails to pay for their share of ownership costs, Fleq will seek remedies to cover those costs under the partnership's Operating Agreement.
Fleq is the managing member of the Alliance. As such, Fleq is in charge of various administrative affairs of the Alliance as well as setting the value of the equity and setting market rents for future leases. As long as a Member is current under the lease, Fleq can never sell the property or cancel the lease.
The Inhabiting Member pays for the cost of home improvements. However, for any approved home improvements, Fleq will either reimburse you for its pro-rata share of the costs or issue you new equity in the partnership equivalent to the increase in the value of the home.