System for managing real estate SWAP accounts

• US 5,950,175 A
• Filed: 10/14/1994
• Issued: 09/07/1999
• Est. Priority Date: 10/14/1994
• Status: Expired due to Term

• Current Assignee: Bank of America Corp.
• Original Assignee: Merrill Lynch Pierce Fenner & Smith Incorporated (Bank of America Corp.)
• Inventors: Austin, Clive H.
• Primary Examiner(s): Voeltz, Emanuel Todd
• Assistant Examiner(s): Hughet, William N.
• Application Number:
  US08/322,505
• Time in Patent Office: 1,789 Days
• Field of Search: 364/408, 705/35, 705/36
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A data processing system for managing a plurality of discrete accounts. Each account provides a swap between a property holder and the plan manager wherein the holder dilutes their exposure to the real estate market by exchanging future appreciation of the property for a current cash flow stream. The system thereafter implements the packaging of plural accounts into baskets of real estate assets and sells this real estate exposure to the institutional market. The data processor retains a system equilibrium by continuously updating the relative positions and the control parameters influencing these positions.

Claims

1. A system for managing a plurality of accounts that correspond to a selected position in a future appreciation of a select real estate asset comprising;

data entry means for receiving and processing a select set of parameters corresponding to an applicant for exchanging a position in real estate for a return tied to a non-real estate asset;

database development means for receiving plural account participants and attendant data thereon and storing said data in an addressable database;

participant qualification means for selectively qualifying real estate properties as suitable participants in said system;

system management means for processing incoming participant event data and updating said database in accordance therewith; and

investment pool processing means for collecting data on said real estate assets and processing said data to form one or more investment pools, wherein said pools include plural real assets each having at least one common property characteristic.

2. The system of claim 1 wherein said parameters includes a description of a residential building, and a select percentage of ownership interest in the change of value of said building at a future point in time.

3. The system of claim 2 wherein said return on a non-real estate asset is a fixed income to accrue until sale of said building.

4. The system of claim 3 wherein said database includes updated files on each account in terms of percentage ownership in said building.

5. The system of claim 4 further comprising real processor means for selective entry of events for modulating or terminating said percentage of ownership interest.

6. A system for processing data corresponding to a plurality of individual investor accounts:

account processor swap means for converting account parameters into a current income steam and a future correspondence to a valuation change of a select real estate asset,

account processor database means for storing and tracking a plurality of separate accounts to effect a net aggregate position and to update said future correspondence to a valuation change due to intervening events,

account processor distribution means for distributing a stake in said future correspondence to a valuation change to real estate investors, wherein said distribution means balances a portfolio of investments to insure limited investment exposure by a system manager; and

investment pool processing means for collecting data on said real estate assests and processing said data to form one or more investment pools, wherein said pools include plural real estate assets each having at least one common property characteristic.

7. The system of claim 6 wherein said swap means included qualification means to regulate system manager exposure.

8. The system of claim 7 wherein said distribution means includes exposure limit to discern requisite change in account qualification terms.

9. The system of claim 8 wherein said future correspondence is established by a system characterized termination event.

10. The system of claim 6 wherein said intervening events include home improvements.

11. A data processing method for managing a plurality of individual accounts wherein each account corresponds to a participant, wherein said participant owns a real estate asset, said method comprising the steps of:

a) creating an account database of separate participant accounts wherein said database comprises a plurality of account entries and each account entry includes participant information stored in physical memory locations in an addressable memory means, said participation information comprises data on said participant and said real estate asset owned by said participant;

b) inputting data on a periodic and/or event driven basis wherein said inputted data is stored in system memory and includes transactional information relating to one or more of said participant accounts;

c) processing said inputted data in accordance with program controlled logic defining an investment equity contract relationship, exchanging a first exposure in said real estate asset corresponding to a change in value thereof, for a defined return, wherein said processing of said inputted data provides a change in one or more parameters associated to said participant account;

d) creating an aggregate investment pool of real estate assets each having at least one common property characteristic; and

e) updating said account database with said changed parameters to support interim report generation and select output of one or more asset activities wherein asset activities include payment of funds to an account participant, and collection of funds pursuant to a real estate asset sale.

12. The method of claim 11 wherein said data processing step includes use of a program controlled digital computer to update account parameters in accordance with periodic events.

13. The method of claim 11 wherein said periodic events includes the transfer of cash or cash equivalent stream to a participant in accordance with stored parameters delineating a fixed return for an exposure to a portion of a defined real estate asset.

14. The method of claim 11 wherein said database entries include descriptive data entries on said underlying real estate assets.

15. The method of claim 11 further comprising the step of inputting investor data comprising data on an investor position in one or more pools of real estate exposures.

16. A system for managing a plurality of real estate equity accounts and a plurality of real estate investor accounts comprising:

a) a first database means for storing in electronic form a series of data entries corresponding to one or more real estate assets;

b) a second database means for storing in electronic form a series of data entries corresponding to one or more investors participating in defined investment relationships in said real estate asset exposures;

c) data processing means for periodic manipulation of said data entries in said first and second database to track and update said databases in accordance with controlling logic, wherein said controlling logic defines a return of income to a group of real estate asset owners and a participation by said investors corresponding to a change in asset value over time, wherein said second database means includes record storage means for aggregated pools of said real estate assets grouped based on at least one common property characteristic.

17. The system of claim 16 wherein said data processing means tracks and updates said plural accounts in accordance with event driven input to said system.

18. The system of claim 16 further comprising output corresponding a periodic payment of a fixed amount to each real estate owner.

19. The system of claim 18 wherein said output includes a periodic statement referencing said payment.