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!
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.
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.