So what does Patch Homes do? In exchange for 0% interest, Patch Homes shares in future appreciation or depreciation of the home value. Customers receive funding from investors to finance their home equity. No interest rates or monthly payments. But in exchange, the homeowner must hand over a percentage of the future home value – kind of like a zero coupon bond. So if the property appreciates in value, the Patch investor gains. Alternatively, if the value of the property declines, the Patch investor loses alongside the homeowner. The Patch Homes model is a twist on current home equity loans. Sahil Gupta, co-founder of Patch Homes, believes there is a problem with the current home financing market.

https://www.crowdfundinsider.com/2017/04/98456-patch-homes-receives-1-million-seed-funding-home-equity-solution/