You have heard of the phrase other people’s money but what about other people’s equity. Money can be hard to obtain from sellers or lenders. Equity is money that has not been transferred into cash. Sellers are more likely to give up equity for cash because equity is an intangible for many distressed sellers. The key to obtaining OPE is speed. You need to be able to move quickly to fill the Seller’s need for liquidity. Here is a technique in a slowing or downtrending market that I have used in the past which might yield a powerful win/win for both parties in a transaction.You identify a house with substantial equity but very little prospects of selling at the current asking price. You approach the Seller to discuss the possibility of a joint venture. You take over the payments and move the seller out and become a co-owner on the deed. You tell the Seller that you will give the seller a portion of the equity now and take over the payments until the property sells. The Seller agrees to give up a percentage of the equity to you for taking over the payments and the remainder of the equity is divided 50/50. For example: House is worth 250,000 but the market selling time is 12 months. Equity is 100,000 and the house payment is 1400.00 PITI per month ($16,800 yearly). You agree to give the seller $10,000 and take over the house payments. You have them agree that you will control the selling of the house. Seller agrees to divide the equity as follows:Buyer receives the 10,000 plus all payments of $16,800 back at closing.Seller and Buyer divide remaining equity 50/50.  You make the decision to drop the price $30,000 to sell the property quickly thus eliminating $8,400 in payments which gets added to the overall equity for the Buyer and Seller to divide. After commissions (if you use an agent) and costs your net equity being divided is as follows:Sales Price 220,000 less $15000 (costs and commissions), less $18,400 ($10,000 to Seller and $8,400 payments) to Investor less payoff of 150,000 equals net equity of $36,600 divided 50/50.$18,400 cash back to you as Buyer plus $18,300 in equity equals total of $36,700. That is a 99% rate of return on your investment in 6 months (profit of $18,300 divided by $18,400 investment = .994).Seller receives $10,000 in cash from you and $18,300 in equity returned for a total of $28,300 in 6 months. The Seller made $28,300 and the Buyer made $18,400 from OPE.  Not a bad way for the Seller to hedge the risk of cash crunch and to manage illiquid equity. AH