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Frequently Asked Questions

The Basics

What is Fleq?
Fleq is the combination of the words “flexible” and “equity” and we’re changing the way you think about homeownership.
What is the Fleq Alliance?
An Alliance is a relationship among people, groups, or states that have joined together for mutual benefit or to achieve a common purpose. A Fleq Alliance is a partnership between Fleq and one or more Member(s) to purchase a home of the Member(s) choosing.
Where is the Fleq Alliance available?
Fleq will be rolling out the Alliance in limited markets in 2019 and will be expanding nationwide. Check back soon for updates or sign-up to receive notifications.

Forming An Alliance

Are there any limitations when I am searching for a home?
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.
What happens if I want to back out of an Alliance?
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.
How is my initial equity contribution determined?
Initial Equity Contributions are determined after review of a potential Member's application. They are not negotiable and must be paid into escrow for the partnership to purchase the Member's desired home. The size of the property and a potential Member's credit history are two of the biggest drivers of the required initial equity contribution.
Is there a minimum credit score required to become a Member?
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.
How long does an Alliance last?
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.

Member Fundamentals

How much will I pay each month?
Each month you will make an Alliance payment that consists of two parts. One part is rent paid to Fleq for the portion of the home you don't own and the other part is a monthly capital call for projected ownership expenses for the portion that you do own.
How does the cost of equity change over time?
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.
Is there a limit to the amount of equity that can be purchased?
A Member can purchase as little or as much equity as they want (up to 100%) at any time or over any period of time.
When can I purchase additional equity?
A Member can purchase equity at any time.
Do changes in interest rates affect my monthly payments?
There is no debt in an Alliance so changes in interest rates do not impact your monthly payment.
Do I have to pay a security deposit?
No! As a result of you being both an owner and a tenant, the partnership does not require you to pay additional cash to guarantee that you will not damage the property.

Ending An Alliance

Do I have the right to sell the partnership’s home?
Yes. The Inhabiting Member retains the right to sell the home.
What if I have to move?
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.
Do I have to consult with Fleq before selling the partnership’s 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.
What happens to me if I can’t make the required payments?
If a Member in their role as tenant, cannot make the required rent payments under the terms of the lease, the Member will be subject to eviction proceedings. If a Member fails to make a capital call as required by the Operating Agreement, Fleq may make that payment on their behalf and seek the remedies available to it under the Operating Agreement.
What happens to my equity if I default on the lease?
Even if you are evicted due to a default on the lease, a Member retains their ownership interests subject to offsets for any legal costs incurred by Fleq.

Additional Questions

Does FLEQ have decision making power without my consent?
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.
Who pays for the cost of home improvements?
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.
Does Fleq allow pets?
Yes! Although there are prohibitions against illegal, poisonous or otherwise dangerous pets, most pets are welcome.
Does Fleq assist in the search for your home?
Fleq does not currently provide assistance in searching for a home. As such, Fleq recommends that you use a licensed real estate professional to assist in your search.

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