The “Never Sell Your Home” Movement is Here to Stay

In March, we launched Knox to give Boston-area residents a way to access all of the wealth-building benefits of owning a rental property, while minimizing the risks and taking away the burdens of being a landlord. 

A homeowner who is ready to move can put her property in the Knox program instead of selling it. We turn the property into an investment, taking care of absolutely everything—all of the financing, accounting, property maintenance, and tenant management. Further, our flat-cost structure simplifies the investment for the homeowner so they know exactly what to expect. With Knox, there are no surprises. The homeowner simply sits back and receives a check from us each quarter. Easy. 

As part of our launch, we published a whitepaper comparing the performance of a theoretical average American home in the Knox Frictionless Ownership Program to a cash investment in S&P 500 over the last 20 years. Our analysis showed that a home in the Knox program was a much better investment. The simple fact is that the average home in America, if made into an investment property with Knox, outperforms the stock market by multiples.

Of course, projections before signing up actual customers are one thing. Now that we have enrolled 20 Boston-area properties, we can confidently say that putting a home in the Knox Frictionless Ownership Program is a superior investment decision.

The three homes highlighted below illustrate why the “Never Sell Your Home” movement is here to stay. Over the coming months, you’ll see more of our “Definitely Not for Sale” lawn signs popping up across the Boston-area, in front of the homes of people who decided to put their property in the Knox program instead of selling it.

An unexpected move opens the door to an astounding rate of return

A young couple purchased a two-family in Marlborough two years ago, and were living in one unit while renting the other. On short notice, they had to move out of state on account of a great job offer. Instead of selling their property, they turned it into a passive investment with Knox.

Through the Knox program, by year 5, the couple is projected to earn $599 per month, and by year 15, $1908 per month in net cash flow. 

In addition to the profits from renting out their property, the couple gets to enjoy the wealth-building benefits that can come with a home appreciating in value. For this home, Knox estimates that the cash flow + equity growth in year 1 alone will add over $27k, to the couple’s wealth climbing to over $36k in year five.

This home was purchased with a relatively small down payment, and through the Knox program, the estimated rate or return on their downpayment is 51% per year! 

Total Return Graph

Downsizing offers this retiree a new wealth-building opportunity 

After decades of Boston winters, a retiree decided to move to a warmer climate. Instead of selling his condo in Back Bay, he turned it into a passive investment with Knox.

Through the Knox program, he will earn approximately $420 per month in cash flow in the first year. By year 5, he will earn $893 per month, and by year 15, $2,077 per month. 

For this home, the cash flow + equity growth in year 1 alone will add over $43k to his wealth, climbing to over $55k in year five. In the future, he will have access to the equity he is building for larger expenses. He’ll also have the opportunity to leave his family with an extremely valuable investment.

Total Return Graph

A new job opportunity leads to a great investment choice 

A finance professor working at one of Boston’s universities got a position at a school out of state. He really liked his condo in Dorchester, and realized the investment potential. Knox enabled him to turn it into a passive investment while he moved to another timezone. 

Through the Knox program, he will earn approximately $220 per month in cash flow in the first year. By year 5, he will earn an estimated $713 per month. 

For this home, Knox estimates that the cash flow + equity growth in year 1 alone will add over $51k to his wealth, climbing to over $69k in year five. As a finance professor, he knows that this is a great investment.

Total Return Graph

Knox Announces Realtor Partner Network to Help More People Build Wealth Through Investment Property Ownership

Network provides realtors with tools and resources for attracting more investment property buyers.

June 11, 2019 — Knox Financial, a fintech company that is making investment property ownership simple, today announced the Knox Realtor Partner Network. This new program is designed to help realtors sell homes to people who are interested in building wealth through investment property ownership.

“Many realtors have networks of past and potential clients who want to build wealth through real estate, but either aren’t sure how to get started, or don’t want to take on the responsibilities of becoming a landlord,” said Dave Friedman, CEO and co-founder of Knox. “We’re offering relators tools and techniques that help them identify which of their previous buyers are ready to be investment property owners, and sell investment properties more effectively.”

Realtors who join the Knox network can offer prospective investment property buyers confidence that they are making sound purchasing decisions. Prior to buying an investment property, Knox forecasts how the home would perform as an investment property, and offers this forecast free-of-charge. Knox also equips relators with the tools and resources they need to identify which of their previous buyers are good candidates for investment property ownership, and to address commonly asked questions about investment property ownership.

“The biggest concerns prospective investment property buyers have are often about the headaches that come with finding tenants and maintaining the property,” said Spencer Taylor, COO and co-founder of Knox. “Working with Knox, realtors can assure their clients that they can reap the benefits of investment property ownership, without having to handle any landlord responsibilities.” 

After the realtor sells an investment property, the buyer has the option of enrolling the home in the Knox Frictionless Ownership Program. Knox manages every aspect of investment property ownership, from finding tenants to collecting rent and maintaining properties. Knox also ensures that properties are rented at optimal rates and maintained efficiently, making investment properties more profitable for their owners. Once a home is enrolled in the Knox program, the homeowner receives a payment each quarter as a passive investor while continuing to own 100% of the equity in the home. 

To learn more about the Knox Realtor Partner Network, visit https://knoxfinancial.com/realtors/.

About Knox Financial

Knox is the smart and frictionless way to turn the home you’re moving out of into an income property that delivers passive cash flow and superior wealth creation. To learn more, visit www.knoxfinancial.com.

Knox Financial Announces Mortgage and Insurance Partners

Partnerships with Own Up and Stanton Insurance focus on providing Knox customers with best-in-class home financing and investment property insurance. 

April 9, 2019 — Knox Financial, a fintech company that is making investment property ownership accessible and frictionless, today announced that it has partnered with Own Up and Stanton Insurance. These partnerships enable Knox to offer its customers best-in-class solutions for securing mortgages and investment property insurance through the Knox Frictionless Ownership Platform. 

“For homeowners who are ready to move, Knox is committed to helping them build long-term wealth, far beyond what they would if they put their homes up for sale,” said Dave Fridman, CEO and co-founder of Knox. “We thought a lot about this commitment as we were building the Knox Frictionless Ownership Platform, and it was important to us that we partner with companies who share our mission of helping homeowners make sound financial decisions.”  

Knox Financial’s partners include:

  • Own Up—Own Up offers a new approach to help people get the lowest rates on their mortgages. Own Up has built a model that aligns its interests with those of its customers, allowing the company to be truly objective when assessing each mortgage loan applicant’s options. Own Up’s customers save an average of $21,000 over the life of their loan. As part of their partnership with Knox, Own Up will help Knox customers secure mortgages on their new homes when they are ready to move. 
  • Stanton Insurance—Stanton Insurance is an independent agency based in Waltham, MA that provides auto insurance, personal insurance and business insurance to residents and businesses throughout Massachusetts. Founded in 1907, the company is made up of a highly educated team who stays on top of industry trends to bring customers superior insurance coverage at an affordable price. Knox is partnering with Stanton Insurance to provide insurance for Knox customers’ investment properties. 

“Putting homeowners’ best interests first is a core value of both Own Up and Knox,” said Mike Tassone, COO and co-founder of Own Up. “We’re confident that Knox customers will appreciate the transparency, honesty, and simplicity we bring to the process of finding a mortgage.”  

For homeowners who are ready to move or landlords who no longer wish to manage their properties, Knox allows them to choose a wealth-building alternative to selling their properties. The Knox Frictionless Ownership Platform features a simple and hands-free process for turning a home into an income property, managing that income property, and securing the appropriate financing for a new home. Once a home is enrolled in the Knox program, the homeowner receives a payment each quarter as a passive investor while continuing to own 100% of the equity in the home. 

The Knox Frictionless Ownership Platform is currently available to qualified homeowners in the Greater Boston area at www.knoxfinancial.com.

About Knox FinancialKnox is the smart and frictionless way to turn the home you’re moving out of into an income property that delivers passive cash flow and superior wealth creation. To learn more, visit www.knoxfinancial.com.

Knox Financial Raises $1.4 Million and Launches Platform to Democratize Income Property Ownership

March 11, 2019 — Knox Financial, a fintech company that is making investment property ownership accessible and frictionless, today announced that it has raised $1.4 million in seed funding and launched the Knox Frictionless Ownership Investment Platform to Boston area homeowners. 

“From families who decide their home is no longer big enough to retirees who want to downsize, moving creates an incredible investment opportunity to turn a home into an income property. Unfortunately, many homeowners today don’t even consider this option, or decide against it because of the complexities associated with setting up and running an income property,” said David Friedman, CEO and co-founder of Knox Financial. “Knox is committed to making the transition to and ownership of income property frictionless, removing the barriers that can prevent homeowners from making an investment that the wealthiest individuals and people in the real estate business often pursue. ” 

According to Urban Institute, between 2007–2017 average home prices in Boston, Cambridge, and Somerville increased by 61 percent, 76 percent, and 89 percent, respectively. Starting today, Knox is offering an investment alternative for Boston-area homeowners who would typically sell their home when they move, allowing them to continue to build wealth and generate income from their properties without taking on the burdens of being a landlord.

The Knox Frictionless Ownership Investment Platform features: 

  • Streamlined application process: Homeowners who would like to learn more about working with Knox can go to www.knoxfinancial.com and apply. Applicants can then schedule a no-strings consultation with a Knox home expert to evaluate their home’s fitness as an income investment.
  • Frictionless income property conversion and ownership: For qualified homes, Knox provides Frictionless Ownership, a white-glove service that turns the home into an income property. The Knox team will visit applicants’ homes to walk through the process, find the right insurance policy, manage all paperwork, and handle all property management and landlord responsibilities once the income property transition is complete, from advertising the unit for rent to managing rental payments and property upkeep. 
  • Financing assistance for a new home: Knox works with each customer to find the proper financing solution for their needs, often allowing homeowners to keep the low interest mortgages they already enjoy. For people who are purchasing a new home as part of their move, Knox can facilitate a refinancing process to help secure the necessary down payment.
  • Distributions to homeowners: Once their home is enrolled in the Knox platform, homeowners become passive investors, receiving a distribution each quarter. Payment to a Knox customer is the difference of the rent paid by the tenant less the operating costs, which include mortgage, tax, and insurance payments, property management fees, and maintenance costs. 

“When people choose the Knox Platform, not only will they have more flexibility in where and how they choose to move. They’ll also be choosing an investment that will help balance their portfolios and have far greater returns than what they could get through traditional investment options,” added Spencer Taylor, COO and co-founder of Knox Financial. 

To validate the performance potential of Knox’s proprietary approach for turning homes into income properties, Knox conducted a market study leveraging publicly available data from the Case-Schiller index of national home prices and historical performance of the S&P 500. The data shows that if an investment property could have been placed on the Knox Platform in 1998, today it would have produced a 369% greater return than the same investment made in the S&P 500. The white paper can be found here.

To learn more about Knox Financial, visit www.knoxfinancial.com.

About Knox Financial

Knox is the smart and frictionless way to turn the home you’re moving out of into an income property that delivers passive cash flow and superior wealth creation. To learn more, visit www.knoxfinancial.com.