Finally, there's a way to literally bet against the house in the event of a real estate collapse. A California firm is offering cash on the barrel head for up to 15% of the value of your home in exchange for a 52.5% share of any capital appreciation when you sell it. We at Rick's Picks have inferred that the intention of the company, San Francisco-base Real Estate Equity Exchange Inc, or 'Rex,' as it is known, is not to insure homeowners against deflation, since Rex would never make such an offer if it thought real estate prices were about to fall. Consumers may not think so either, but with home prices across the U.S, already having declined 10 percent in the last year, it might look like a decent gamble, especially to that undeniably broad swath of Americans who are 'asset rich but cash poor.' From Rex's point of view, it's a straightforward way to earn 3.5% of the gains for every 1% it pays homeowners for the option. Not So Crazy It's not as crazy as it sounds, since the deal would allow consumers to tap the equity in their homes without incurring any debt or payment obligations. There would be no taxes on the cash received, and property owners would have up to 50 years to sell, according to Investment News, a weekly newspaper for financial advisers that reported this story in its February 12 edition. Naturally, Rex's competitors in the reverse mortgage business were quick to diss the product, suggesting consumers would never go for it. 'The biggest downside is the 50% capital gains for a measly 15% of the house,' said Scott Hanson, co-owner of a reverse-mortgage firm headquartered in Southern California. Hanson might be right if the Rex product were designed merely to allow
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