By Paul Hatvany Kitchen

You’ve spent years helping build a company. Your equity may be worth a considerable amount, but the money for a down payment is another matter. How do you move forward with a San Francisco home purchase when much of your wealth is tied up in private stock?

The first step is understanding what you can actually access, on what terms, and when. Once you’ve determined that, finding a good luxury Real Estate Agent, like Team Hatvany Kitchen, is the easy part.

An AI IPO could change your plans. Leave room for uncertainty.

If you work for an AI startup, the prospect of an IPO may be part of your homebuying plans. But an anticipated public offering doesn’t establish when you’ll have cash available. OpenAI’s IPO, for example, was originally expected this year but is now reportedly likely to come next year. Even after a company goes public, lockup agreements may delay your ability to sell. The eventual proceeds also depend on the share price when you can transact.

It’s worth asking: could you still complete the purchase and comfortably carry the home if that liquidity event were delayed?

Find out which options are actually available

Private-company shares work differently from publicly traded stocks. Before building a budget around them, review your holdings and company restrictions with the appropriate advisors.

A few avenues may be worth exploring:

• A company-sponsored tender offer. Some companies arrange opportunities for eligible employees to sell a portion of their shares before an IPO.
• A permitted secondary sale. A sale to another investor may provide liquidity, but company approval, buyer demand, and transfer restrictions can affect whether it happens. Both OpenAI and Anthropic have warned about unauthorized share sales, so confirm any transaction with your company first.
• Private-stock financing. A small group of banks and specialty firms will lend cash against eligible pre-IPO stock, including shares of companies like OpenAI and Anthropic, and some employees of both companies have reportedly used these loans to help fund home purchases. One private bank told the San Francisco Chronicle it has made many such loans. The Chronicle reported that most of those borrowers plan to repay after their company goes public, so consider what happens if that takes longer than expected. We’ve also heard talk of lenders who work with many employees at the same company, though we can’t confirm any formal arrangement with an employer. These loans generally aren’t due until the company goes public or is sold, but they’re likely to carry higher interest rates and stricter collateral requirements than borrowing against public stock. Qualification can be selective, and company restrictions may limit your ability to pledge shares, so confirm both first. Availability and costs vary, so understand the fees, repayment terms, and any share of future gains you would give up.
• NEW UPDATE. Since publishing, we have actually gotten direct communications from several banks, including Wells Fargo and Citizens Bank offering “competitive financing options for shareholders at
  companies such as Anthropic, SpaceX, OpenAI, Nvidia, and Databricks”. Clearly, especially for certain later-stage private companies, lenders are able to structure unsecured financing, which is particularly useful for individuals subject to lockups or seeking liquidity without selling appreciated shares. I imagine this market will only get more competitive as more and more banks create financial products directly targeted towards those individuals who stand to gain a tremendous amount of money but are currently pre-IPO.
• A mortgage that considers your equity. Traditional underwriting generally doesn’t treat private shares like public stock, but some specialized lenders say they will consider them case by case. Ask how much of the value they would count, what documentation they need, and how the terms compare with a conventional loan.

Financial institutions are competing for this business. Bloomberg has reported that major banks, including Goldman Sachs and JPMorgan, have held talks with Anthropic about providing wealth management services to its employees, as the company compiles a list of advisers for them. That’s different from a home-loan program, but your stock plan administrator or HR team can tell you what’s available at your company.

If you also own publicly traded investments, a securities-backed credit line may be another conversation to have with your lender. Don’t assume the same facility accepts private startup stock. Borrowing against a portfolio also introduces risk: falling collateral values can trigger demands for additional funds or forced sales.

Work backward from the closing date

Before making an offer, bring your lender and tax advisor into the conversation. Establish how much cash will remain after any exercise costs, taxes, and fees, and when those funds can reach escrow.

Your budget should also leave room for closing costs, moving expenses, and reserves after the purchase. Have the mortgage lender review any proposed borrowing before you commit to it.

That preparation gives us a clear framework for the home search and helps us move swiftly when the right property becomes available.

At Team Hatvany Kitchen, we’re not financial advisors, but we have helped many buyers turn their stock portfolios into successful real estate transactions. Our role is to coordinate the homebuying process with your financial professionals, keeping the property search, offer strategy, and closing timeline aligned.

If private stock is a significant part of your finances, let’s start the conversation before you find the home you want.