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New Rex Agreement allows franchisees to turn home equity into business equity
West Palm Beach, FL (February 25, 2013) – The United Franchise Group (UFG), the global leader for entrepreneurs, announced today an agreement with FirstREX to make FirstREX’s home equity-based business funding available to current and future franchisees. This innovative product, the REX Agreement, allows homeowners to convert a portion of their home equity to cash to invest in a business without additional debt.
“The REX Agreement fills an important niche in franchise financing, and will be a significant addition to the variety of financing options we currently offer” said Ray Titus, CEO of United Franchise Group. “Prospective and existing franchisees who have significant home equity now have a way to convert some of that asset into an investment in their business without interest or payments.” “Often franchisees use a combination of funding strategies to obtain financing, including loans, leases and lines of credit. The REX Agreement can help prospective franchisees obtain the initial owner equity that lenders require for them to get into their own business.” says Titus.
Under a REX Agreement, FirstREX will make an equity investment in an individual residential property. The company will pay the homeowner up to 12.5% of the value of the home. There is no interest and the homeowner makes no monthly payments to FirstREX. Instead, the company earns a return on its investment when the home is eventually sold, up to 30 years in the future. If the home has increased in value, the company earns a profit. If the home has decreased in value, FirstREX typically shares the loss.
“We are delighted to be working with UFG to bring the REX Agreement to franchisees,” says James Riccitelli, Co-CEO of FirstREX. “Many potential franchisees and existing franchisees have limited access to capital but possess considerable home equity. Our solution makes that asset available for business investment – in essence turning home equity into business equity,” says Riccitelli.
About the United Franchise Group (UFG)
The United Franchise Group is the Global Leader for Entrepreneurs, consisting of a number of award-winning business-to-business brands and franchise development services including some of the world’s largest industry-leading names. The experts at UFG have used their over 25 years of franchising experience to grow the franchising giant into a $500 million dollar success story with approximately 1,400 franchise locations in 50 countries. The company includes franchise industry giants SIGNARAMA, the world’s largest sign franchise; EmbroidMe, the world’s largest embroidery franchise; Transworld Business Advisors, for people to research business opportunities before investing; and SuperGreen Solutions, a premium one-stop retail location for energy efficient products. Information on franchising opportunities is available at 561-640-5570 or at the United Franchise Group site.
Founded in 2004, FirstREX provides homeowners and home buyers with smart new financing alternatives to home equity loans and mortgages. Neither a lender nor a bank, FirstREX makes long term investments in individual residential properties through two highly innovative consumer equity sharing products, REX HomeBuyer, which helps people purchase homes, and the REX Agreement, which allows current homeowners to tap their home equity without interest or monthly payments. FirstREX’s consumer solutions have earned national recognition from prominent newspapers and magazines including the Wall Street Journal, Business Week and the New York Times. More information is available at www.1REX.com.