

Ask HN: Housing for equity? - jmtame

I'm not sure if this is even considered to be a good idea in general.  Has anyone offered equity to get free rent?  Can it cause problems later down the road?
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pg
During the Bubble in the late 90s (funny one now has to specify) some
commercial landlords used to get paid partially in warrants, which are
basically the corporate equivalent of stock options. It's not so common now,
though, and it wouldn't be a good plan for a very small startup anyway,
because landlords would have no idea how to value you.

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byrneseyeview
I've heard many people say this happened, but very few examples (besides
Paypal). Are there any other examples?

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pg
I think most of the time the landlords lost. That's why they don't do it
anymore.

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enduser
It works better the other way around: buy something and rent it out to get
free equity.

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noodle
if the arrangement works for all parties involved, why not? get it in contract
form.

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chiffonade
For fuck's sake, equity is not cash, stop using and thinking about it like
cash.

And what kind of landlord would even go for this? Mortgages can't be paid in
equity, either.

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mixmax
If someone is willing to buy your equity it's as good as cash.

You do need a buyer for it though...

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chiffonade
> If someone is willing to buy your equity it's as good as cash.

Which means it isn't cash.

