A closer look at the Tufa account.
A Tufa account is a brokerage account a family funds and holds, until a designated buyer is ready to purchase a home. At purchase, the balance converts into shares in a Tufa fund, and the fund invests alongside the buyer.
The homepage covers what the account is. This page covers how it works.
An account you hold, not capital you set aside.
A Tufa account is a self-directed brokerage account. The balance is invested in what the account holder chooses to own, in the same way as any brokerage account they hold today. It is not cash waiting in place until a purchase.
The account sits in the family’s name. The capital remains the family’s throughout, invested and liquid, until the moment a purchase converts it.
Funded over the years before a purchase.
Parents of adult children who are renting now and a few years from buying.
Gradually, as the purchase comes into view, or in a single step when the moment arrives.
There is no fixed schedule and no required amount.
The buyer can see it. The family holds it.
Named on the account, with read-only visibility. The buyer sees the account that will support their purchase, and can plan around it.
Full control of the account. The account holder decides what it holds, adds to it or not, and can withdraw the balance at any time. Naming a buyer does not transfer the capital or any claim on it.
The money stays yours until the day it converts.
A designated buyer is a designation, not a commitment of the capital to them. The balance is the family’s and can be withdrawn at any time, for any reason. If circumstances change, if the buyer purchases another way, or if the account holder decides not to proceed, the capital stays with the family. Nothing converts unless a purchase occurs.
At purchase, the account becomes fund shares.
When the designated buyer purchases a home, the account balance converts into shares in a Tufa fund. The fund places an appreciation-based second lien on the home, alongside the buyer’s standard first mortgage. The buyer qualifies independently and owns the home outright, as the sole person on title. The family holds fund shares, which represent diversified residential exposure across many homes, not a stake in the specific home.
One act of capital, two outcomes.
Questions
Is a Tufa account the same as investing in the fund?
No. The account is a brokerage account the family funds and holds. It converts into fund shares only when a designated buyer purchases a home. Until then it is a brokerage account in the family's name.
What is the balance invested in before a purchase?
What the account holder chooses to own, in the same way as any self-directed brokerage account.
Can the money be withdrawn?
Yes. The capital remains the family's and can be withdrawn at any time. Naming a designated buyer does not transfer it or place any claim on it.
Does naming a buyer give them access to the money?
No. The designated buyer has read-only visibility. The account holder retains full control.
What happens if my child buys a home without Tufa, or does not buy at all?
The capital stays with the family. Nothing converts unless a purchase through the structure occurs.
Does the buyer take on debt to the family?
No. The buyer owns the home outright and is the sole person on title. The appreciation-based second is held by the fund, not by the family. The family holds fund shares, not a claim on the home.
When can an account be opened?
Tufa is not yet available. A filing is in progress and accounts are not yet open. Request early access to be notified.
Helping a family member buy a home, held like any other investment until the day it is needed.
Tufa is not yet available. Request early access to be notified when accounts open.