SYSTEM AND A METHOD OF PROFITING OR GENERATING INCOME FROM THE BUILT-IN EQUITY IN REAL ESTATE ASSETS OR ANY OTHER FORM OF ILLIQUID ASSET

• US 20090030853A1
• Filed: 03/28/2008
• Published: 01/29/2009
• Est. Priority Date: 03/30/2007
• Status: Abandoned Application

• Current Assignee: Alain L De La Motte
• Original Assignee: Alain L De La Motte
• Inventors: De La Motte, Alain L.
• Application Number:
  US12/057,684
• Publication Number:
  US 20090030853A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Briefly, embodiments of a system or a method of profiting or generating income from equity in real estate or any other form of illiquid asset is disclosed.

Claims

1. A method of forming a standardized trust structure, comprising:

forming a trust by an agreement, with the trust including an aggregated liquidity pool;

constructing the trust agreement to allow the trust to perform preselected functions;

establishing a system of issuing and redeeming fractional units of ownership in the trust;

creating trust sub-accounts to receive cash and non-cash deposits;

opening and maintaining a master custody account for the trust;

issuing trust units to new depositors in exchange for cash and non-cash assets contributed to the trust;

adopting permitted investment rules for the aggregated liquidity pool of the trust;

obtaining a secured loan facility secured by non-cash assets held in the trust; and

distributing trust dividends to unit holders.

2. A method of forming an investment engine for use within by a standardized trust structure, comprising:

constructing and implementing a principal-protected investment mechanism.

3. A method of adopting an investment strategy that complies with permitted investment rules of a trust and simultaneously eliminates risks while increasing return on investment, comprising:

considering plural sub-strategies that include arbitrage trading strategies, overnight sweep strategies, risk mitigation strategies and profit maximization strategies,

eliminating trade execution, credit and liquidity risks in arbitrage trading strategies,

applying financial leverage to increase profitability,

applying refinancing techniques involving repo and reverse repo strategies,

collateralization and risk management strategies; and

including the plural sub-strategies in the investment strategy.

4. A system of forming a standardized trust structure, comprising:

a trust with an aggregated liquidity pool;

a trust agreement that allows the trust to perform pre-selected functions;

a subsystem of issuing and redeeming fractional units of ownership in the trust and trust sub-accounts to receive cash and non-cash deposits;

a master custody account associated with the trust;

a subsystem for issuing trust units to new depositors in exchange for cash and non-cash assets contributed to the trust;

a set of permitted investment rules for the aggregated liquidity pool of the trust;

a secured loan facility secured by non-cash assets held in the trust; and

a subsystem for distributing trust dividends to unit holders.