Innovative Program Allows Maryland Homeowners to Tap Equity without Debt, Interest...

Innovative Program Allows Maryland Homeowners to Tap Equity without Debt, Interest or Monthly Payments

The REX(TM) Agreement is a safe, debt free alternative to Home
Loans, HELOCs and Reverse Mortgages
SAN FRANCISCO--(Business Wire)--
Maryland homeowners now have the ability to unlock equity in their
homes without ever incurring debt, interest charges or monthly
payments. REX & Co., a real estate investment company dedicated to
creating safe alternatives to debt financing, announced today that it
is offering the REX Agreement in Maryland. The REX Agreement allows
homeowners to convert a portion of their home's value into cash now in
exchange for granting REX & Co. a portion of the future increase or
decrease in the home's value. The REX Agreement is available in 11
states nationwide, including Connecticut, Massachusetts, New Jersey
and Virginia.

"Responsible homeowners have worked hard to build equity in their
homes. These homeowners now have a debt-free choice when it comes to
accessing that equity," said Tjarko Leifer, managing director at REX &
Co. "Homeowners who shop and compare products quickly acknowledge the
advantages of a REX Agreement when compared to HELOCs and reverse
mortgages."

To qualify for a Rex Agreement, homeowners must reside in an
owner-occupied, single-family detached home, have a history of
financial responsibility, good credit and at least 25 percent equity
in their home. There are no restrictions on how the money can be used
and, unlike reverse mortgages, no age restrictions to qualify.
Homeowners interested in a REX Agreement can apply online at
www.rexagreement.com, or by calling 866-722-3910.

"The benefits of this product became clear as soon as I first
heard of the REX Agreement," said Dimitri Merine, an Ellicott
City-based doctor and Maryland's first REX Agreement client. "Using my
equity to get cash without paying interest or making monthly payments
made perfect sense to me. The cash I receive from the REX Agreement
will allow me to make investments that help diversify my portfolio and
at the same time protect me from potential declines in Baltimore area
home prices."

"From paying off credit cards to making home improvements,
supplementing retirement income or for any other use, the REX
Agreement empowers homeowners to do things they may never have thought
possible," said Leifer.

How the REX Agreement Plays Out

Consider an example with a home valued at $1 million, the
homeowner desires $100,000 and agrees to share 40 percent of the
future change in value with REX & Co. Six years later the homeowner
decides to end the Rex Agreement. There are three possible outcomes:
1) the home has gone up in value, 2) the value is unchanged, or 3) the
value has declined.

1) The value of the home increases $200,000 and is valued at $1.2
million at the end of the agreement. The net result for the homeowner
is that they had use of $100,000 with no monthly payments or interest
charges, and receive 60 percent of the $200,000 gain in the home. REX
& Co. would receive $180,000 which is equal to the $100,000 it
advanced plus 40 percent of the gain.

2) The value of the home does not change, and remains at $1
million. With the REX Agreement the homeowner shares a portion of the
gain or loss going forward. Since there was no gain or loss, the
homeowner would have had use of the $100,000 with no interest charges
or monthly payments, while REX & Co. would receive only an amount
equal to the money it advanced.

3) The value of the home declines by $200,000 and is now valued at
$800,000. Even though the home value dropped $200,000, the homeowner's
net proceeds would be $880,000 because REX & Co. shared 40 percent of
that loss, or $80,000. In this case, the REX Agreement protects the
homeowner from $80,000 in the decrease of the home value.

"However you look at it, a REX Agreement is a win-win situation
for the homeowner," said Leifer. "The homeowner gets unrestricted use
of the money, a term they control, and a meaningful downside hedge."

About REX & Co.

Founded in 2004, REX & Co. is a real estate investment company
that makes equity investments in residential real estate. Using the
REX Agreement, REX & Co. allows homeowners to convert their home
equity into cash with no additional debt, no interest, and no monthly
payments in exchange for granting REX & Co. the right to receive a
pre-designated percentage of the future change in value of the home.
The REX Agreement is available in California, Colorado, Connecticut,
Florida, Illinois, Massachusetts, Maryland, New Jersey, Oregon,
Virginia and Washington. For additional information, please refer to
www.rexagreement.com.

Rex & Co.
Michael Altfest, 415-222-9944
michael.altfest@edelman.com

Copyright Business Wire 2008