Process for funding multi-unit real estate projects

• US 20030236676A1
• Filed: 06/20/2002
• Published: 12/25/2003
• Est. Priority Date: 06/20/2002
• Status: Abandoned Application

• Current Assignee: Robert Lionel Graham
• Original Assignee: Robert Lionel Graham
• Inventors: Graham, Robert Lionel
• Application Number:
  US10/175,213
• Publication Number:
  US 20030236676A1
• Time in Patent Office: Days
• US Class Current: 705/316
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 50/167 Closing

Abstract

A process for funding construction or conversion of multi-unit real estate projects with proceeds from sales of individual units therein, each requiring a re-sale contract, includes the steps of Unit sales to such unit buyers priced low enough to entice quick sell-out by deferring Developer'"'"'s profit; Funding of all project costs before construction start from such unit sales; and Requiring unit re-sale contracts from such unit buyers to give developer or re-seller the opportunity to profit from re-sales of those units to retail unit buyers. This eliminates the project construction lender, thus project foreclosure risk, thereby lowering development risk to one unit per unit buyer. Developers can more readily get 100% project funding, better provide unit financing and earlier closing to retail unit buyers, and thus build more projects not now fundable considering project construction lender restrictions.

Claims

1. A process for funding the construction or conversion of multi-unit real estate Projects, each with proceeds from sales of individual Units therein to Wholesale Unit Buyers at discount prices, including Unit Re-Sale Contracts with each such Unit sale so the Developer might realize profits on Unit Re-Sales, comprising the steps of:

Funding of all Project costs before construction or conversion start from sales of Units therein priced at discount, and

Including Unit Re-Sale Contracts from each Wholesale Unit Buyer to give the Developer, opportunity to profit from Re-Sales of those Units to Retail Unit Buyers.

2. A process as claimed in claim 1 further comprising the steps of:

Structuring the multi-unit Project'"'"'s construction or conversion decisions and activities so that Unit Buyers are not subject to defenses on Unit Completion Guaranties,

Selling to Unit Buyers with closing and payment therefore before construction or conversion start,

Issuing Unit Completion Guaranties to Unit Buyers and their individual Unit Mortgage Lenders at Unit sales closing.

3. A process as claimed in claim 1 further comprising the steps of

Selling Units to Retail Unit Buyers each pursuant to Re-Sale Contracts by the Developer, as Re-Sellers,

Closing sales to Retail Unit Buyers before Project completion or sell-out of most of the Project'"'"'s Units, free of Project Construction Lender restrictions, and

Allowing Interim Loans from Wholesale Unit Buyers to provide Unit financing until Retail Unit Buyers can obtain a Conventional Unit Mortgage Loans.