Systems and methods for asset financing utilizing fractionalization of property interests

• US 20030110108A1
• Filed: 09/06/2002
• Published: 06/12/2003
• Est. Priority Date: 12/11/2001
• Status: Abandoned Application

• Current Assignee: Richard J. Sabella
• Original Assignee: Richard J. Sabella
• Inventors: Sabella, Richard J.
• Application Number:
  US10/236,849
• Publication Number:
  US 20030110108A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A system, method, apparatus, medium, and means for transferring property includes identifying a fractional interest in the property, identifying a recombination right in the property, pricing the fractional interest and the recombination right, and transferring the property upon receipt of a price of the fractional interest and the recombination right.

Claims

1. A method for financing the ownership or acquisition of property, comprising:

identifying a fractional interest in said property;

identifying a recombination right in said property;

pricing said fractional interest and said recombination right; and

transferring said property upon receipt of a price of said fractional interest and said recombination right.

2. The method of claim 1, wherein said fractional interest is a term of years interest.

3. The method of claim 2, wherein said term of years interest is a term of less than or equal to 10 years.

4. The method of claim 2, wherein said term of years interest is a term greater than or equal to 10 years.

5. The method of claim 2, further comprising:

identifying a second fractional interest in said property.

6. The method of claim 5, wherein said second fractional interest is a future interest in said property, said future interest vesting at an end of said term of years interest.

7. The method of claim 6, wherein said recombination right is an option to acquire said future interest in said property.

8. The method of claim 7 wherein said recombination right is a right having a legal effect of terminating a holder'"'"'s interest or estate in property selected from at least one of:

a condition subsequent conditional limitation;

a reverter; and

acontractual provision.

9. The method of claim 7, wherein a price of said recombination right is determined based at least in part on a desired return on investment for a holder of said second fractional interest.

10. The method of claim 5, wherein said second fractional interest is a residual interest and said recombination right is at least one of:

an option to acquire said residual interest;

a condition subsequent conditional limitation;

a reverter; and

a contractual provision.

11. The method of claim 1, further comprising:

identifying at least a second fractional interest in said property, and wherein said recombination right includes a right to recombine said fractional interest and said at least second fractional interests.

12. The method of claim 1, further comprising:

determining if said pricing is acceptable to parties to said transfer; and

if said pricing is not acceptable to parties to said transfer, repeating said identifying a fractional interest, identifying a recombination right, and pricing until said pricing is acceptable to said parties.

13. The method of claim 12, wherein said parties to said transfer include a seller and a taker of said fractional interest.

14. A method for a buyer to acquire an asset, comprising:

identifying a first fractional interest in said asset, said first fractional interest to be held by said buyer;

identifying a second fractional interest in said asset, said second fractional interest to be held by a third party; and

identifying a recombination right in said asset, said recombination right allowing said buyer to acquire said second fractional interest from said third party upon specified terms.

15. The method of claim 14, further comprising:

purchasing said first fractional interest from a seller of said asset; and

purchasing said recombination right from said seller of said asset.

16. The method of claim 15, wherein a price of said first fractional interest is determined based at least in part on terms of said second fractional interest.

17. The method of claim 14, wherein a price of said second fractional interest is determined based at least in part on terms of said first fractional interest.

18. The method of claim 14, wherein a price of said recombination right is based at least in part on terms of said first and said second fractional interests.

19. The method of claim 14, wherein a price of said recombination right is based at least in part on the return on investment desired by said third party.

20. The method of claim 14, further comprising:

transferring said asset to said buyer subject to said second fractional interest.

21. A method for selling an asset to a buyer, comprising:

receiving a request to purchase said asset;

offering a first fractional interest in said asset to said buyer at a first price;

offering a second fractional interest in said asset to an investor at a second price;

offering a recombination right to said buyer at a third price; and

conveying said first fractional interest and said recombination rights to said buyer and said second fractional interest to said investor.

22. The method of claim 21, wherein a sum of said first price, said second price and said third price is greater than a market value of said asset.

23. The method of claim 21, wherein said first fractional interest is a term of years interest in said asset.

24. The method of claim 21, wherein said second fractional interest is a future interest.

25. The method of claim 21, wherein said recombination right is an option to acquire said second fractional interest.

26. A method for facilitating the sale of an asset from a seller to a buyer, comprising:

identifying a first fractional interest in said asset to be held by said buyer;

identifying a second fractional interest in said asset to be held by an investor;

identifying a recombination right allowing said buyer to acquire said second fractional interest from said investor;

pricing said first fractional interest, said second fractional interest, and said recombination right; and

conveying said asset from said seller to said buyer.

27. A computer-implemented method performed by a seller to facilitate sale of an asset, comprising:

establishing a market value for said asset;

establishing terms of a first fractional interest in said asset, said first fractional interest to be conveyed to a buyer of said asset, said terms including a first price term

establishing terms of a second fractional interest in said asset, said second fractional interest to be conveyed to a third party, said terms including a second price term; and

establishing terms of a recombination right allowing said buyer to acquire said second fractional interest from said third party, said terms including a third price term;

wherein a sum of said first, second and third price terms is greater than said market value.

28. An apparatus, comprising:

a processor; and

a storage device in communication with said processor and storing instructions adapted to be executed by said processor to;

identify a fractional interest in a property;

identify a recombination right;

price said fractional interest and said recombination right; and

transfer said property to a buyer upon receipt of said price of said fractional interest and recombination right.

29. The apparatus of claim 28, wherein said storage device further stores at least one of:

(i) a property database, and (ii) a transaction database.

30. The apparatus of claim 28, further comprising:

a communication device coupled to said processor and adapted to communicate with at least one of;

(i) a seller device, (ii) an investor device, (iii) a buyer device, and (iv) a lender device.

31. A medium storing instructions adapted to be executed by a processor to perform a method of selling an asset, said method comprising:

identifying a fractional interest in a property;

identifying a recombination right;

pricing said fractional interest and said recombination right; and

transferring said property to a buyer upon receipt of said price of said fractional interest and recombination right.