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What if you could sell your backyard?
Welcome to the deep dive. Today, we’re gonna dive into something that might have you, like, literally checking your property lines. Intriguing. We’re talking about getting cash out of your house Okay. But not the way you might think.
So forget about refinancing or, like, adding another bedroom. Okay. What if you could sell your backyard?
That’s a new one. It sounds wild. Right? Right. But it’s actually something a lot of homeowners are considering, especially with how high interest rates are these days. Exactly. It’s like everyone’s got this hidden asset just sitting back there. So our listener today is curious about this company, Yardsworth. Okay. They’re offering exactly this, turning a chunk of your backyard into, well, a chunk of change.
I gotta admit. When I first saw this, I was like, is this even legal? Yeah. That’s the first question I had too. Right. Turns out, it all ties back to this California law, SB 9 Okay. Passed a few years back.
How it works – California law SB 9
Basically California law SB 9 made it way easier to split properties. The idea was to create more housing and Yardsworth is basically working within those rules. So it’s all above board. So not a loophole. Yeah. But for our listener who’s now probably picturing, like, mini bulldozers in their petunias Right. Let’s break down how this whole thing actually works.
Alright. So you’ve got your house, you’ve got your yard, and maybe you’ve got some plans for that equity that’s all tied up in that land. Yardsworth comes in with basically two main options. So we got options. Good to hear. Always good. Lay it on me.
Option 1: Yardsworth will buy a portion of your backyard
This is like the fast track. Yards worth, they’ll actually buy a portion of your backyard outright. They handle everything. Like, the lot split, the paperwork, the whole 9 yards. In one of their examples, a homeowner could end up with, like, a $168,500 tax free in about, like, 6 to 9 months. Wow. That’s a pretty quick turnaround for such a significant chunk of change. Yeah. I mean, you could potentially be wiping out some debt with that or making those home improvements you’ve been putting off. Absolutely. Maybe even finally take that dream vacation.
Exactly. And the best part is you don’t have to take on any more debt to do it. That’s a pretty sweet deal, especially with interest rates being what they are these days. It’s huge. That’s a huge part of the appeal here. Right? Because you think about it, instead of going to a bank hat in hand, trying to, like, you know, see if you qualify for a loan with these crazy high rates. You’re actually, like, reducing your reliance on debt entirely. Yeah. You’re not adding to the problem. You’re taking a chunk out of it. Yeah. Potentially. I’m like, kinda sold on option 1, but tell me more about option 2.
Option 2: Yardsworth will help you split your lot so you can build a second property
This is where it gets really interesting. Okay. So they’ll still handle the lot split, but instead of buying the land from you, they help you turn it into, like, a whole new income property. What? Yeah. Like a duplex, a guest house, you know, something that you can rent out for, like, some sweet passive income. Okay. So you’re telling me my backyard could essentially be like a money printing machine? Essentially. Yeah. That’s wild. I feel like this is, like, a whole other side of homeownership that people just don’t even think about. Right. No more, like, wishing your commute were shorter because you’re suddenly, like, a landlord in your own backyard.
So that sounds amazing, but I imagine that this option probably takes a little bit longer than option 1. It does. It does. Yeah. It requires a bit more, time and upfront investment on your part. Yardsworth estimates it could take about 2 years. Okay. And potentially upwards of, like, $500,000 to complete. Got it. So you’d really need to be prepared to oversee, like, the construction process and handle the responsibilities of being landlord. Yeah. It’s not passive at first, but it could be passive later on. Okay. That makes sense.
So it’s a trade off. Right? You’ve got faster cash with the first option versus building that potential income stream with the second. Right. But no matter which way you slice it, we’re talking about a significant potential increase in your net worth. Either through that lump sum payment or this new asset that’s generating income. Yeah. And, again, all without taking on more debt in this crazy high interest rate environment. That’s the key. It’s like finding this, like, secret financial loophole in your own backyard. I like how you think.
What happens to your property value?
Well, I mean, I do have one question, though. They mentioned something on their website about property value potentially decreasing after the split. Right. So that’s gotta be a factor. Right? It’s true. They estimate about a 5 to 10% decrease, which, you know, makes sense. You are giving up some land. Sure. But they’re very upfront about it. And they even have, like, independent appraisals done as part of the process just to make sure everything’s transparent.
Okay. So it’s like anything else in real estate. It’s all about weighing the potential risks and rewards. Exactly. But if you’re strategic about it, you could still come out ahead. Absolutely. I mean, just imagine paying off those high interest credit cards Oh, yeah. Or maybe some student loans. Alright. I mean, that alone could do wonders for your, like, overall financial health. Absolutely. And and, you know, you think about it. Owning a home is often seen as this path to building wealth. Right. Well, this is another avenue to do just that. Totally. But instead of waiting for your property value to, you know, slowly appreciate over time Right. You’re proactively unlocking that equity now and putting it to work for you today. It’s true.
And I feel like this is especially relevant in today’s market where so many homeowners are feeling, I don’t know, maybe a little stuck. Yeah. Like, they either feel trapped by their current house Right. Because maybe they refinance at a really low rate and they don’t wanna give that up. Right. Exactly. Or they’re wary of buying a new place with interest rates being what they are. Right. For sure. So it’s like Yardsworth is kind of offering this third option. Yeah. It’s like, stay put. You know? Maybe you love your house. You love your neighborhood. Right. But you still wanna be able to unlock that equity that you’ve built up in your property. Exactly.
So it’s like it’s really like a whole new way to think about homeownership in a lot of ways. You nailed it. Yeah. It really is. Okay.
Is it right for you?
So I have to ask. You know, if our listeners hearing this right now and they’re thinking, okay. Sign me up. Where do I start? What are some things that you think they should keep in mind? That’s a great question. I think it’s important to remember that, every homeowner’s situation is gonna be unique. Of course.
Of course. What works for one person might not be the best fit for another. Exactly. What works for someone in, like, California might not be the right fit for someone in another state Right. Where regulations could be different. You know? Totally. Or maybe, you know, they’ve got this beautiful garden, and they’re just not ready to give up part of it. Right. Even if it means a hefty chunk of change. It’s all about, you know, finding what aligns with, like, your own personal circumstances, you know, your financial goals. Right. And and I think you know, that’s why I always encourage homeowners to really think about their long term vision. You know? Yeah.
Like, what do you want your life to look like in 5, 10 years? Right. And how can, like, unlocking this equity help you get there? Yeah. It’s like that age old question of, like, what would you do if money were no object? Right. Well, maybe Yardsworth is a way to kind of at least, like, you know, dip your toe in those waters. Perhaps. But in all seriousness, I think it’s crucial to, you know, carefully consider the implications of either option. Right?
Like, does selling a portion of your land actually align with, you know, your future plans? Yeah. Or would you rather, you know, take on the role of a landlord and potentially, you know, reap those benefits of rental income down road. Right.
And and this is where, like, a trusted financial adviser could be super helpful. Right? Someone to, like, really help you crunch the numbers Yeah. And and just figure out, like, which path actually makes the most sense for your unique situation. Someone who can help you, you know, like, really evaluate your options Right. Assess your risk tolerance and just, you know, guide you towards the best possible outcome.
How to get started?
So listener, if you are intrigued by this idea of, like, literally, you know, unlocking hidden cash in your backyard Mhmm. And, I mean, who isn’t? But, like, what’s the first step? Like, what do you do after you’re done, you know, running around your backyard with a tape measure? Right.
Well, first things first. You know, reach out to Yardsworth. Have a conversation. Yeah. They offer, like, free consultations. Oh, nice. So, you know, you can get all your questions answered. You can explore if it’s actually, like, the right fit for you. Exactly. And remember, no pressure. Right. Like, this is just about gathering information Exactly. And empowering yourself to make the best financial decision for your future. Precisely. It’s your home. It’s your equity. Right. It’s your life. So take control, explore your options, and just see what possibilities await. I love it.
This has been, I don’t know, kinda eye opening, actually. Yeah. I don’t know about you, but I’m suddenly seeing, like, dollar signs, like, sprouting up in, like, backyard everywhere I look. Who knows? Maybe this is, like, the start of some new era in homeownership. Right. Like, the great backyard gold rush of the 20 twenties. There you go.
Alright. Well, listener, we’ve given you the lay of the land. Now it’s up to you to decide how you’re gonna cultivate your own backyard bounty. Happy digging.
This is the deep dive signing off.
