REAL ESTATE INVESTMENT METHOD FOR PURCHASING A PLURALITY OF DISTRESSED PROPERTIES FROM A SINGLE INSTITUTION AT FORMULA-DERIVED PRICES
First Claim
1. A method for investing in distressed real estate properties, the method comprising:
- aggregating monetary investments from a plurality of investors so as to accumulate investment capital;
negotiating an agreement with a lending institution to purchase a plurality of distressed real estate properties at purchase prices to be calculated using a pricing formula specified in the agreement,the agreement requiring the lending institution to identify a plurality of qualifying distressed properties by applying property qualifying criteria specified in the agreement to properties that are currently financed by the lending institution, andthe agreement requiring the lending institution to release all claims pertaining to each qualifying distressed property that is purchased under the agreement, in return for receipt by the lending institution of a specified portion of the purchase price;
using the investment capital, purchasing at least some of the qualifying distressed properties at the calculated purchase prices;
re-selling each of the plurality of purchased properties so as to produce proceeds; and
distributing at least some of the proceeds among the plurality of investors.
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Accused Products
Abstract
A real estate investing method is disclosed in which aggregated investment capital is used to purchase a plurality of properties from a single lending institution at short-sale prices calculated using a pre-negotiated formula. The lending institution agrees to identify and qualify properties, and accept the short-sale prices, in return for selling a plurality of distressed properties under a single agreement. Owners avoid foreclosure and consequent damage to their credit. Investors aren'"'"'t burdened by property selection and/or maintenance. In preferred embodiments, owner-occupied homes are purchased, leased back to their occupants, and eventually resold to the occupants if their finances recover. Repurchase credit incentives can be offered to occupants, providing limited participation in property appreciation and motivating occupants to maintain the properties and strive to repurchase them. During leases, landlord services are provided under contract by local service providers and/or regional warranty providers. A central support group can provide centralized tenant support.
82 Citations
25 Claims
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1. A method for investing in distressed real estate properties, the method comprising:
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aggregating monetary investments from a plurality of investors so as to accumulate investment capital; negotiating an agreement with a lending institution to purchase a plurality of distressed real estate properties at purchase prices to be calculated using a pricing formula specified in the agreement, the agreement requiring the lending institution to identify a plurality of qualifying distressed properties by applying property qualifying criteria specified in the agreement to properties that are currently financed by the lending institution, and the agreement requiring the lending institution to release all claims pertaining to each qualifying distressed property that is purchased under the agreement, in return for receipt by the lending institution of a specified portion of the purchase price; using the investment capital, purchasing at least some of the qualifying distressed properties at the calculated purchase prices; re-selling each of the plurality of purchased properties so as to produce proceeds; and distributing at least some of the proceeds among the plurality of investors. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16)
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17. A method for investing in distressed single-family properties, the method comprising:
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aggregating monetary investments from a plurality of investors so as to accumulate investment capital; negotiating an agreement with a lending institution to purchase a plurality of distressed single-family properties at purchase prices to be calculated using a pricing formula specified in the agreement, the agreement requiring the lending institution to identify a plurality of qualifying single-family properties by applying property qualifying criteria specified in the agreement to single-family properties that are financed by the lending institution and currently occupied by owner-occupants, and the agreement requiring the lending institution to release all claims pertaining to each qualifying property that is purchased under the agreement, in return for receipt by the lending institution of a specified portion of the purchase price; for each qualifying property, applying occupant qualifying criteria to the owner-occupant, so as to determine if the owner-occupant is a qualified occupant who is financially qualified to be a tenant of the property; using the investment capital, purchasing at the calculated purchase prices at least some of the plurality of qualifying distressed properties that are occupied by qualified occupants; leasing each purchased property to its qualified occupant; re-selling each of the plurality of purchased properties so as to produce proceeds, each purchased property being re-sold, if possible, to its qualified occupant; and distributing at least some of the proceeds among the plurality of investors. - View Dependent Claims (18, 19, 20, 21, 22, 23, 24, 25)
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Specification