Methods and systems for online real estate transactions

• US 8,606,679 B1
• Filed: 08/10/2009
• Issued: 12/10/2013
• Est. Priority Date: 08/08/2008
• Status: Active Grant

• Current Assignee: Jonathan J. Daniel
• Original Assignee: Jonathan J. Daniel
• Inventors: Daniel, Jonathan J.
• Primary Examiner(s): Kalinowski, Alexander
• Assistant Examiner(s): CAMPBELL, KELLIE L
• Application Number:
  US12/538,789
• Time in Patent Office: 1,583 Days
• Field of Search: 705 35- 38
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

The disclosed technology provides systems and methods for processing, auctioning, and managing fractional ownerships in real estate assets. In one aspect, the disclosed technology accesses electronic information that specifies a real estate asset for sale. The electronic information specifies that ownership of the real estate asset includes a right to some or all income from the real estate asset. The disclosed technology also accesses electronic information that specifies one or more of bids for fractional ownership in the real estate asset. Each of the bids specifies a bid amount reflecting a purchase price to be paid for the fractional ownership and a corresponding bid yield associated with the bid amount. The disclosed technology selects one or more of the bids to form a sale transaction for the real estate asset and then stores an electronic record indicating that a fractional ownership in the real estate asset has been sold based on the selected bid(s).

Claims

1. A computer executing software for processing, auctioning, and managing fractional ownership in real estate assets, wherein the software, when executed, causes the computer to perform steps comprising:

accessing electronic information specifying a real estate asset for sale, wherein said electronic information specifies that ownership of said real estate asset includes a right to at least a portion of income from said real estate asset;

accessing electronic information specifying a plurality of fractional ownership bids in said real estate asset, wherein each of said fractional ownership bids specifies a bid amount to be paid for fractional ownership in said real estate asset and a corresponding bid yield associated with said bid amount;

selecting a first bid from said plurality of fractional ownership bids for a sale transaction transferring a first fractional ownership in said real estate asset, said first fractional ownership being specified in said first selected bid and comprising less than 100% of ownership of said real estate asset, said first selected bid also specifying a first bid yield that corresponds to a first portion of future income from said real estate to be paid over a specified time period to a bidder making said first selected bid, said selecting being based on both the bid amount and the bid yield of said first selected bid;

selecting a second bid from said plurality of fractional ownership bids for a sale transaction transferring a second fractional ownership in said real estate asset, said second fractional ownership being specified in said second selected bid and comprising less than 100% of ownership of said real estate asset, said second selected bid also specifying a second bid yield that corresponds to a second portion of future income from said real estate to be paid over said specified time period to a bidder making said second selected bid, said selecting being based on both the bid amount and the bid yield of said second selected bid; and

storing an electronic record indicating sale of a first fractional ownership in said real estate asset to said bidder making said first selected bid and an electronic record indicating sale of a second fractional ownership in said real estate asset to said bidder making said second selected bid.

2. A computer executing software as in claim 1, wherein:

said electronic information specifying said real estate asset for sale further specifies a buy now option;

said plurality of fractional ownership bids includes a bid exercising said buy now option; and

said selecting a first bid from said plurality of fractional ownership bids comprises selecting said bid exercising said buy now option.

3. A computer executing software as in claim 2, wherein said buy now option includes at least one of:

an option to buy a fractional ownership in said real estate asset now, and an option to buy an entire ownership in said real estate asset now.

4. A computer executing software as in claim 1, wherein selecting selecting a first bid from said plurality of fractional ownership bids comprises:

grouping said plurality of fractional ownership bids into a plurality of combinations of bids;

for each combination;

computing a weighted average yield for said combination based on bid amounts and bid yields for bids in said combination,

computing an aggregate bid amount for bids in said combination; and

selecting one combination from said plurality of combinations based on said weighted average yields and said aggregate bid amounts.

5. A computer executing software as in claim 4, wherein selecting one combination from said plurality of combinations is further based on at least one preference specified by a seller of said real estate asset.

6. A computer executing software as in claim 5, wherein said at least one preference specified by said seller comprises said seller retaining a particular fractional ownership in said real estate asset.

7. A computer executing software as in claim 4, wherein selecting one combination from said plurality of combinations comprises selecting a combination that has a lower product of aggregate bid amount and weighted average yield compared to corresponding products for other combinations.

8. A computer executing software as in claim 4, wherein said plurality of combinations includes:

a first combination having a first aggregate bid amount and a first weighted average yield, and a second combination having a single bid for an entire ownership in said real estate asset, wherein said first aggregate bid amount is equal to a bid amount in said single bid, and wherein selecting one combination from said plurality of combinations comprises;

selecting said first combination when said first weighted average yield is less than a bid yield in said single bid; and

selecting said second combination when said first weighted average yield is greater than or equal to said bid yield in said single bid.

9. A computer implemented method for processing, auctioning, and managing fractional ownership in real estate assets, the method comprising:

accessing, by a computer, electronic information specifying a real estate asset for sale,

wherein said electronic information specifies that ownership of said real estate asset includes a right to at least a portion of income from said real estate asset;

accessing, by said computer, electronic information specifying a plurality of fractional ownership bids in said real estate asset, wherein each of said fractional ownership bids specifies a bid amount to be paid for fractional ownership in said real estate asset and a corresponding bid yield associated with said bid amount;

selecting, by said computer, a first bid from said plurality of fractional ownership bids for a sale transaction transferring a first fractional ownership in for said real estate asset, said first fractional ownership being specified in said first selected bid and comprising less than 100% of ownership of said real estate asset, said first selected bid also specifying a first bid yield that corresponds to a first portion of future income from said real estate to be paid over a specified time period to a bidder making said first selected bid, said selecting being based on both the bid amount and the bid yield of said first selected bid;

selecting, by said computer, a second bid from said plurality of fractional ownership bids for a sale transaction transferring a second fractional ownership in said real estate asset, said second fractional ownership being specified in said second selected bid and comprising less than 100% of ownership of said real estate asset, said second selected bid also specifying a second bid yield that corresponds to a second portion of future income from said real estate to be paid over said specified time period to a bidder making said second selected bid, said selecting being based on both the bid amount and the bid yield of said second selected bid; and

storing, by said computer, an electronic record indicating sale of a first fractional ownership in said real estate asset to said bidder making said first selected bid and an electronic record indicating sale of a second fractional ownership in said real estate asset to said bidder making said second selected bid.

10. A computer implemented method as in claim 9, wherein:

said electronic information specifying said real estate asset for sale further specifies a buy now option;

said plurality of fractional ownership bids includes a bid exercising said buy now option; and

said selecting a first bid from said plurality of fractional ownership bids comprises selecting said bid exercising said buy now option.

11. A computer implemented method as in claim 10, wherein said buy now option includes at least one of:

an option to buy a fractional ownership in said real estate asset now, and an option to buy an entire ownership in said real estate asset now.

12. A computer implemented method as in claim 9, wherein selecting a first bid from said plurality of fractional ownership bids comprises:

grouping said plurality of fractional ownership bids into a plurality of combinations of bids;

for each combination;

computing a weighted average yield for said combination based on bid amounts and bid yields for bids in said combination,

computing an aggregate bid amount for bids in said combination; and

selecting one combination from said plurality of combinations based on said weighted average yields and said aggregate bid amounts.

13. A computer implemented method as in claim 12, wherein selecting one combination from said plurality of combinations is further based on at least one preference specified by a seller of said real estate asset.

14. A computer implemented method as in claim 13, wherein said at least one preference specified by said seller comprises said seller retaining a particular fractional ownership in said real estate asset.

15. A computer implemented method as in claim 12, wherein selecting one combination from said plurality of combinations comprises selecting a combination that has a lower product of aggregate bid amount and weighted average yield compared to corresponding products for other combinations.

16. A computer implemented method as in claim 12, wherein said plurality of combinations includes:

a first combination having a first aggregate bid amount and a first weighted average yield, and a second combination having a single bid for an entire ownership in said real estate asset, wherein said first aggregate bid amount is equal to a bid amount in said single bid, and wherein selecting one combination from said plurality of combinations comprises;

selecting, by said computer, said first combination when said first weighted average yield is less than a bid yield in said single bid; and

selecting, by said computer, said second combination when said first weighted average yield is greater than or equal to said bid yield in said single bid.