U.S. patent application number 16/849714 was filed with the patent office on 2021-05-06 for architecture for exchange, publication, and distributed investment of property-backed vehicles.
The applicant listed for this patent is Tellus App, Inc.. Invention is credited to Rocky Lee, Tiancheng Zhu.
Application Number | 20210133874 16/849714 |
Document ID | / |
Family ID | 1000004814602 |
Filed Date | 2021-05-06 |
United States Patent
Application |
20210133874 |
Kind Code |
A1 |
Lee; Rocky ; et al. |
May 6, 2021 |
ARCHITECTURE FOR EXCHANGE, PUBLICATION, AND DISTRIBUTED INVESTMENT
OF PROPERTY-BACKED VEHICLES
Abstract
A method comprising issuing and assigning investment units of a
loan investment of a property to a first and second investor and a
second investor that funded the loan, issuing and assigning
investment units of a second loan investment of another property to
a third and fourth investor and a fourth investor that funded the
loan, the second loan investment being a second loan to a second
property owner and secured by second property of the second
property owner, listing the investment units on a transactional
exchange, registering and authenticating a potential investor,
receiving a purchase request to purchase a number of first
investment units at a price, confirming the first investor's
interest to sell, conducting a trade between the first and
potential investor, determining a second price based, at least in
part, on the trade, and updating the listing on the transactional
exchange.
Inventors: |
Lee; Rocky; (Cupertino,
CA) ; Zhu; Tiancheng; (Mountain View, CA) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Tellus App, Inc. |
Menlo Park |
CA |
US |
|
|
Family ID: |
1000004814602 |
Appl. No.: |
16/849714 |
Filed: |
April 15, 2020 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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62930505 |
Nov 4, 2019 |
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Current U.S.
Class: |
1/1 |
Current CPC
Class: |
G06Q 40/025 20130101;
G06Q 50/18 20130101; G06Q 40/04 20130101; H04L 63/0428 20130101;
G06Q 20/127 20130101; G06Q 30/0185 20130101; G06Q 2220/00 20130101;
G06F 16/9535 20190101; G06Q 50/16 20130101; G06Q 30/0278 20130101;
G06Q 10/10 20130101 |
International
Class: |
G06Q 40/04 20060101
G06Q040/04; G06Q 40/02 20060101 G06Q040/02; G06Q 30/02 20060101
G06Q030/02; G06Q 50/16 20060101 G06Q050/16; G06Q 10/10 20060101
G06Q010/10; G06Q 50/18 20060101 G06Q050/18; G06Q 30/00 20060101
G06Q030/00; G06Q 20/12 20060101 G06Q020/12; H04L 29/06 20060101
H04L029/06; G06F 16/9535 20060101 G06F016/9535 |
Claims
1. A non-transitory computer readable medium comprising
instructions executable by a processor, the instructions being
executable to perform a method, the method comprising: issuing
first investment units of a first loan investment and assigning the
first investment units to a first investor and a second investor,
the first loan investment being a first loan to a first property
owner and secured by first property of the first property owner,
the first loan being funded by the first and the second investor;
issuing second investment units of a second loan investment and
assigning the second investment units to a third investor and a
fourth investor, the second loan investment being a second loan to
a second property owner and secured by second property of the
second property owner, the second loan being funded by the third
and the fourth investor, the second property being remote from the
first property and the first investor, second investor, third
investor and fourth investor being remote from each other; listing
the first investment units and the second investment units on a
transactional exchange; registering and authenticating a potential
investor on the transactional exchange; providing information
through the transactional exchange to the potential investor
regarding the first loan investment and the second loan investment;
receiving a purchase request from the potential investor to
purchase a first number of first investment units at a first price;
confirming the first investor's interest to sell the first number
of first investment units at the first price to the potential
investor; conducting a trade between the first investor and the
potential investor for the first number of first investment units;
determining a second price for the first investment units based, at
least in part, on the trade; and updating the listing of the first
investment units on the transactional exchange.
2. The non-transitory computer readable medium of claim 1, the
method further comprising: receiving, from a first property owner
system, a first loan request to be secured by the first property
owned by the first property owner of the first property owner
system, the first loan request including first property information
identifying the first property, the first property owner system
being remote; assessing a first value of the first property based,
at least in part, on the property information of the first
property; providing first loan terms to the first property owner
system and requesting agreement; receiving a first agreement to the
first loan terms from the first property owner system; publishing a
first particular loan opportunity among a plurality of different
loan opportunities, the first particular loan opportunity being
based on agreed first loan terms and the first property
information, the plurality of different loan opportunities being
searchable through an interface provided by an investment system;
providing different loan opportunities of the plurality of
different loan opportunities based on a first query received from
remote systems; in response to receiving selections of the first
particular loan opportunity from the plurality of different loan
opportunities by a first investor system and a second investor
system, the first investor system being operated by the first
investor, the second investor system being operated by the second
investor, providing details of the first particular loan
opportunity including at least some of the property information
identifying the first property to the first investor system and the
second investor system, the first investor system and the second
investor system being remote from each other and operated by the
first investor and the second investor, respectively; receiving a
first commitment from the first investor system to partially fund a
first partial funding of a loan amount associated with the first
particular loan opportunity and a second commitment from the second
investor system to partially fund a second partial funding of the
loan amount associated with the first particular loan opportunity;
enabling a first loan to a first user of the first property owner
system when the loan amount associated with the first particular
loan opportunity is completely funded; distributing, every day,
daily returns to the first and second investors, a first amount of
the daily returns of the first investor being based on an amount of
the first partial funding of the loan amount and a second amount of
the daily returns of the second investor being based on an amount
of the second partial funding of the loan amount; and receiving
first loan payments from the first user and distributing the daily
returns from the first loan payments.
3. The non-transitory computer readable medium of claim 2, the
method further comprising: updating destinations of daily returns
of the first loan payments in order for the potential investor to
receive the daily returns after the trade; and distributing at
least some of the daily returns from the first loan payments to the
potential investor.
4. The non-transitory computer readable medium of claim 1, wherein
confirming the first investor's interest to sell the first number
of first investment units at the first price to the potential
investor comprises: establishing a communication channel between
the first investor and the potential investor to enable them to
negotiate an agreement to trade; and storing the communication
between the first investor and the potential investor over the
communication channel as evidence of the agreement.
5. The non-transitory computer readable medium of claim 4, the
method further comprising generating a trade contract at least
between the first investor and the potential investor including
terms of the agreement and enabling the first investor and the
potential investor to indicate their approval.
6. The non-transitory computer readable medium of claim 5, wherein
in the communication channel is encrypted.
7. The non-transitory computer readable medium of claim 3, the
method further comprising updating destinations of daily returns
and determining the second price for the first investment units
takes place at a particular time once a day.
8. The non-transitory computer readable medium of claim 1, wherein
registering and authenticating the potential investor comprises
receiving from the potential investor an indication that the
potential investor is an accredited investor.
9. The non-transitory computer readable medium of claim 1, the
method further comprising maintaining the purchase request as being
open for purchasing for a predetermined period of time, the
predetermined period of time being indicated by the purchase
request.
10. A method comprising: issuing first investment units of a first
loan investment and assigning the first investment units to a first
investor and a second investor, the first loan investment being a
first loan to a first property owner and secured by first property
of the first property owner, the first loan being funded by the
first and the second investor; issuing second investment units of a
second loan investment and assigning the second investment units to
a third investor and a fourth investor, the second loan investment
being a second loan to a second property owner and secured by
second property of the second property owner, the second loan being
funded by the third and the fourth investor, the second property
being remote from the first property and the first investor, second
investor, third investor and fourth investor being remote from each
other; listing the first investment units and the second investment
units on a transactional exchange; registering and authenticating a
potential investor on the transactional exchange; providing
information through the transactional exchange to the potential
investor regarding the first loan investment and the second loan
investment; receiving a purchase request from the potential
investor to purchase a first number of first investment units at a
first price; confirming the first investor's interest to sell the
first number of first investment units at the first price to the
potential investor; conducting a trade between the first investor
and the potential investor for the first number of first investment
units; determining a second price for the first investment units
based, at least in part, on the trade; and updating the listing of
the first investment units on the transactional exchange.
11. The method of claim 10, the method further comprising:
receiving, from a first property owner system, a first loan request
to be secured by the first property owned by the first property
owner of the first property owner system, the first loan request
including first property information identifying the first
property, the first property owner system being remote; assessing a
first value of the first property based, at least in part, on the
property information of the first property; providing first loan
terms to the first property owner system and requesting agreement;
receiving a first agreement to the first loan terms from the first
property owner system; publishing a first particular loan
opportunity among a plurality of different loan opportunities, the
first particular loan opportunity being based on agreed first loan
terms and the first property information, the plurality of
different loan opportunities being searchable through an interface
provided by an investment system; providing different loan
opportunities of the plurality of different loan opportunities
based on a first query received from remote systems; in response to
receiving selections of the first particular loan opportunity from
the plurality of different loan opportunities by a first investor
system and a second investor system, the first investor system
being operated by the first investor, the second investor system
being operated by the second investor, providing details of the
first particular loan opportunity including at least some of the
property information identifying the first property to the first
investor system and the second investor system, the first investor
system and the second investor system being remote from each other
and operated by the first investor and the second investor,
respectively; receiving a first commitment from the first investor
system to partially fund a first partial funding of a loan amount
associated with the first particular loan opportunity and a second
commitment from the second investor system to partially fund a
second partial funding of the loan amount associated with the first
particular loan opportunity; enabling a first loan to a first user
of the first property owner system when the loan amount associated
with the first particular loan opportunity is completely funded;
distributing, every day, daily returns to the first and second
investors, a first amount of the daily returns of the first
investor being based on an amount of the first partial funding of
the loan amount and a second amount of the daily returns of the
second investor being based on an amount of the second partial
funding of the loan amount; and receiving first loan payments from
the first user and distributing the daily returns from the first
loan payments.
12. The method of claim 11, the method further comprising: updating
destinations of daily returns of the first loan payments in order
for the potential investor to receive the daily returns after the
trade; and distributing at least some of the daily returns from the
first loan payments to the potential investor.
13. The method of claim 12, the method further comprising: updating
destinations of daily returns of the first loan payments in order
for the potential investor to receive the daily returns after the
trade; and distributing at least some of the daily returns from the
first loan payments to the potential investor.
14. The method of claim 10, wherein confirming the first investor's
interest to sell the first number of first investment units at the
first price to the potential investor comprises: establishing a
communication channel between the first investor and the potential
investor to enable them to negotiate an agreement to trade; and
storing the communication between the first investor and the
potential investor over the communication channel as evidence of
the agreement.
15. The method of claim 14, the method further comprising
generating a trade contract at least between the first investor and
the potential investor including terms of the agreement and
enabling the first investor and the potential investor to indicate
their approval.
16. The method of claim 15, wherein in the communication channel is
encrypted.
17. The method of claim 13, the method further comprising updating
destinations of daily returns and determining the second price for
the first investment units takes place at a particular time once a
day.
18. The method of claim 11, wherein registering and authenticating
the potential investor comprises receiving from the potential
investor an indication that the potential investor is an accredited
investor.
19. The method of claim 11, the method further comprising
maintaining the purchase request as being open for purchasing for a
predetermined period of time, the predetermined period of time
being indicated by the purchase request.
20. A system comprising: at least one processor; a network
interface to communicate over a network; and memory, the memory
including instructions to control the at least one processor to:
issue first investment units of a first loan investment and
assigning the first investment units to a first investor and a
second investor, the first loan investment being a first loan to a
first property owner and secured by first property of the first
property owner, the first loan being funded by the first and the
second investor; issue second investment units of a second loan
investment and assigning the second investment units to a third
investor and a fourth investor, the second loan investment being a
second loan to a second property owner and secured by second
property of the second property owner, the second loan being funded
by the third and the fourth investor, the second property being
remote from the first property and the first investor, second
investor, third investor and fourth investor being remote from each
other; list the first investment units and the second investment
units on a transactional exchange; register and authenticating a
potential investor on the transactional exchange; provide
information through the transactional exchange to the potential
investor regarding the first loan investment and the second loan
investment; receive a purchase request from the potential investor
to purchase a first number of first investment units at a first
price; confirm the first investor's interest to sell the first
number of first investment units at the first price to the
potential investor; conduct a trade between the first investor and
the potential investor for the first number of first investment
units; determine a second price for the first investment units
based, at least in part, on the trade; and update the listing of
the first investment units on the transactional exchange.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application claims priority to U.S. Provisional Patent
Application No. 62/930,505, filed on Nov. 4, 2019 and entitled
"ARCHITECTURE FOR CREATION, PUBLICATION, AND DISTRIBUTED INVESTMENT
OF PROPERTY-BACKED VEHICLES", which is incorporated in its entirety
herein by reference.
TECHNICAL FIELD
[0002] This disclosure pertains to secure systems for a centralized
architecture for borrowers, individual and party investors for
property backed assets and, more specifically, a centralized
architecture for creation, publication, and distributed investment
of property-backed loan vehicles.
BACKGROUND
[0003] Property owners seeking liquidity generally must go to a
financial institution and arrange loan terms. The financial
institution may fund the loan based on negotiated loan terms.
Subsequently, the financial institution may generate income from
the loan and provide the income to others that invest in the loan
in the form of interest. The loan vehicle may be bundled with other
loan vehicles and sold to other financial institutions or,
alternately, derivatives based on the loans may be created for
further risk distribution and/or income opportunities.
[0004] Traditional financial institutions do not allow a system
whereby different potential, unrelated investors may discover
different properties and property-backed loans that they may
individually invest in. As a result, a traditional financial
institution may undertake a loan that is secured by the real
property, but individual, unrelated investors may not individually,
intentionally, and specifically find an invest in that particular
loan opportunity. Traditional financial institutions are monolithic
and do not distribute or publish information regarding specific
property-backed loan opportunities to others (e.g., particularly
for loan opportunities of a relatively low amount of money such as
$10 k, $50 k, $100 k, and $500 k).
[0005] Further, traditional financial institutions do not have a
flexible architecture to publish and arrange in investment from
multiple investors for each loan opportunity. As a result,
investors lose options and flexibility. Further, by distributing
the investment of the loan opportunity over specific investors that
accept the risk and profit from the income, the financial
institution may undertake unnecessary and, at times, unpredictable
risk over any number of investments that can be transferred to
individual investors.
[0006] Moreover, traditional financial institutions do not have the
architecture to distribute interest and/or principal (e.g.,
returns) back to individual investors that invested in the loan
opportunity.
SUMMARY
[0007] An example non-transitory computer readable medium comprises
instructions that are executable by a processor. The instructions
being executable to perform an example method. The method
comprising receiving, from a first property owner system by an
investment system, a first loan request to be secured by first
property owned by a first user of the first property owner system,
the first loan request including property information identifying
the first property, the first property owner system being remote
from the investment system, assessing a first value of the first
property based, at least in part, on the property information of
the first property, providing first loan terms to the first
property owner system and requesting agreement, receiving a first
agreement to the first loan terms from the first property owner
system, publishing, by the investment system on a network, a first
particular loan opportunity among a plurality of different loan
opportunities, the first particular loan opportunity being based on
the agreed first loan terms and the first property information, the
plurality of different loan opportunities being searchable through
an interface provided by the investment system, providing different
loan opportunities of the plurality of different loan opportunities
based on a first query received from remote systems, in response to
receiving selections of the first particular loan opportunity from
the plurality of different loan opportunities by a first investor
system and a second investor system, providing details of the first
particular loan opportunity including at least some of the property
information identifying the first property to the first investor
system and the second investor system, the first investor system
and the second investor system being remote from each other and
operated by a first investment entity and a second investment
entity, respectively, receiving a first commitment from the first
investor system to partially fund a loan amount associated with the
first particular loan opportunity and a second commitment from the
second investor system to partially fund the loan amount associated
with the first particular loan opportunity, enabling a first loan
to the first user when the loan amount associated with the first
particular loan opportunity is completely funded, distributing,
every day, daily returns to the first investing entity and the
second investing entity, a first amount of the daily returns of the
first investing entity being based on an amount of the first
partial funding of the loan amount and a second amount of the daily
returns of the second investing entity being based on an amount of
the second partial funding of the loan amount, and receiving first
loan payments from the first user and distributing the daily
returns from the first loan payments.
[0008] The method may further comprise receiving a retention
payment from first funds provided by the first investing entity and
the second investing entity, the retention payment enabling
providing of the daily returns to the first investment entity and
the second investing entity until an initial loan payment of the
first loan payments is received by the first user. In some
embodiments, the method may further comprise retrieving a first
agreement template from a plurality of agreement templates,
populating the first agreement template based on an identity of the
first user, an identity of the first investing entity, an identity
of the second investing entity, the loan amount, the first loan
terms, and the first property information to create a first
agreement, providing the first agreement to the property owner
system, the first investor system, and the second investor system,
and receiving signed copies of the first agreement from the
property owner system, the first investor system, and the second
investor system, wherein enabling the first loan to the first user
occurs after the signed copies are received.
[0009] In some embodiments, the method may further comprise
receiving, from a second property owner system by the investment
system, a second loan request to be secured by second property
owned by a second user of the second property owner system, the
second loan request including property information identifying the
second property, the second property owner system being remote from
the investment system and the first property owner system, the
first user being different than the second user, assessing a second
value of the second property based, at least in part, on the
property information of the second property, providing second loan
terms to the second property owner system and requesting agreement,
receiving a second agreement to the second loan terms from the
second property owner system, publishing, by the investment system
on the network, a second particular loan opportunity among the
plurality of different loan opportunities, the second particular
loan opportunity being based on the agreed second loan terms and
the second property information, the second particular loan
opportunity being pending at a same time as the first particular
loan opportunity, in response to receiving selections of the second
particular loan opportunity from the plurality of different loan
opportunities by a third investor system and a fourth investor
system, providing details of the second particular loan opportunity
including at least some of the property information identifying the
second property to the third investor system and the fourth
investor system, the third investor system and the fourth investor
system being remote from each other as well as being remote from
the first investor system and the second investor system, the third
investor system and the fourth investor system being operated by a
third investment entity and a fourth investment entity,
respectively, the first, second, third, and fourth investment
entities being different from each other, receiving a third
commitment from the third investor system to partially fund a loan
amount associated with the second particular loan opportunity and a
fourth commitment from the fourth investor system to partially fund
the loan amount associated with the second particular loan
opportunity, enabling a second loan to the second user when the
loan amount associated with the second particular loan opportunity
is completely funded, distributing, every day, daily returns to the
third investing entity and the fourth investing entity, a third
amount of the daily returns of the third investing entity being
based on an amount of the third partial funding of the loan amount
and a fourth amount of the daily returns of the fourth investing
entity being based on an amount of the fourth partial funding of
the loan amount, and receiving second loan payments from the second
user and distributing the daily returns from the second loan
payments.
[0010] Enabling the first loan to the first user comprises
providing instructions over the network to a financial institution
to provide the first loan amount to the first user. In some
embodiments, distributing, every day, daily returns comprises
providing instructions over the network to the financial
institution to provide the daily returns to the first investing
entity and the second investing entity. In various embodiments, a
facilitating entity that operates the investment system registers
the first loan as a sole debtor.
[0011] The method may further comprise authenticating the first
user of the first property owner system, the first investing entity
of the first investor system, and the second investing entity of
the second investor system, providing a communication channel among
the first property owner system, the first investor system, and the
second investor system for communication over the network, creating
a secure record of communication in the communication channel among
the first property owner system, the first investor system, and the
second investor system, receiving a second query for the secure
record from a requestor, the requestor being the first property
owner system, the first investor system, or the second investor
system, authenticating the second query, and providing the secure
record upon authentication of the second query. In some
embodiments, authenticating the second query comprises receiving an
encryption key from the requestor to determine if the requester is
authorized to receive the secure record.
[0012] In some embodiments, the method may further comprise
generating a dashboard viewable by the first investor system over
the network, the dashboard indicating daily payments made and
future daily payments for any number of loans funded by the first
investor entity using the investment system.
[0013] An example investment system may comprise at least one
processor, a network interface to communicate over a network, and
memory. The memory may include instructions to control the at least
one processor to receive, from a first property owner system, a
first loan request to be secured by first property owned by a first
user of the first property owner system, the first loan request
including property information identifying the first property, the
first property owner system being remote from the investment
system, assess a first value of the first property based, at least
in part, on the property information of the first property, provide
first loan terms to the first property owner system and requesting
agreement, receive a first agreement to the first loan terms from
the first property owner system, publish, on the network, a first
particular loan opportunity among a plurality of different loan
opportunities, the first particular loan opportunity being based on
the agreed first loan terms and the first property information, the
plurality of different loan opportunities being searchable through
an interface provided by the investment system, provide different
loan opportunities of the plurality of different loan opportunities
based on a first query received from remote systems, in response to
receiving selections of the first particular loan opportunity from
the plurality of different loan opportunities by a first investor
system and a second investor system, provide details of the first
particular loan opportunity including at least some of the property
information identifying the first property to the first investor
system and the second investor system, the first investor system
and the second investor system being remote from each other and
operated by a first investment entity and a second investment
entity, respectively, receive a first commitment from the first
investor system to partially fund a loan amount associated with the
first particular loan opportunity and a second commitment from the
second investor system to partially fund the loan amount associated
with the first particular loan opportunity, enable a first loan to
the first user when the loan amount associated with the first
particular loan opportunity is completely funded, distribute, every
day, daily returns to the first investing entity and the second
investing entity, a first amount of the daily returns of the first
investing entity being based on an amount of the first partial
funding of the loan amount and a second amount of the daily returns
of the second investing entity being based on an amount of the
second partial funding of the loan amount, and receive first loan
payments from the first user and distributing the daily returns
from the first loan payments.
[0014] An example method comprises receiving, from a first property
owner system by an investment system, a first loan request to be
secured by first property owned by a first user of the first
property owner system, the first loan request including property
information identifying the first property, the first property
owner system being remote from the investment system, assessing a
first value of the first property based, at least in part, on the
property information of the first property, providing first loan
terms to the first property owner system and requesting agreement,
receiving a first agreement to the first loan terms from the first
property owner system, publishing, by the investment system on a
network, a first particular loan opportunity among a plurality of
different loan opportunities, the first particular loan opportunity
being based on the agreed first loan terms and the first property
information, the plurality of different loan opportunities being
searchable through an interface provided by the investment system,
providing different loan opportunities of the plurality of
different loan opportunities based on a first query received from
remote systems, in response to receiving selections of the first
particular loan opportunity from the plurality of different loan
opportunities by a first investor system and a second investor
system, providing details of the first particular loan opportunity
including at least some of the property information identifying the
first property to the first investor system and the second investor
system, the first investor system and the second investor system
being remote from each other and operated by a first investment
entity and a second investment entity, respectively, receiving a
first commitment from the first investor system to partially fund a
loan amount associated with the first particular loan opportunity
and a second commitment from the second investor system to
partially fund the loan amount associated with the first particular
loan opportunity, enabling a first loan to the first user when the
loan amount associated with the first particular loan opportunity
is completely funded, distributing, every day, daily returns to the
first investing entity and the second investing entity, a first
amount of the daily returns of the first investing entity being
based on an amount of the first partial funding of the loan amount
and a second amount of the daily returns of the second investing
entity being based on an amount of the second partial funding of
the loan amount, and receiving first loan payments from the first
user and distributing the daily returns from the first loan
payments.
[0015] An example non-transitory computer readable medium comprises
instructions executable by a processor. The instructions may be
executable to perform a method comprising issuing first investment
units of a first loan investment and assigning the first investment
units to a first investor and a second investor, the first loan
investment being a first loan to a first property owner and secured
by first property of the first property owner, the first loan being
funded by the first and the second investor, issuing second
investment units of a second loan investment and assigning the
second investment units to a third investor and a fourth investor,
the second loan investment being a second loan to a second property
owner and secured by second property of the second property owner,
the second loan being funded by the third and the fourth investor,
the second property being remote from the first property and the
first investor, second investor, third investor and fourth investor
being remote from each other, listing the first investment units
and the second investment units on a transactional exchange,
registering and authenticating a potential investor on the
transactional exchange, providing information through the
transactional exchange to the potential investor regarding the
first loan investment and the second loan investment, receiving a
purchase request from the potential investor to purchase a first
number of first investment units at a first price, confirming the
first investor's interest to sell the first number of first
investment units at the first price to the potential investor,
conducting a trade between the first investor and the potential
investor for the first number of first investment units,
determining a second price for the first investment units based, at
least in part, on the trade, and updating the listing of the first
investment units on the transactional exchange.
[0016] The method may further comprise receiving, from a first
property owner system, a first loan request to be secured by the
first property owned by the first property owner of the first
property owner system, the first loan request including first
property information identifying the first property, the first
property owner system being remote, assessing a first value of the
first property based, at least in part, on the property information
of the first property, providing first loan terms to the first
property owner system and requesting agreement, receiving a first
agreement to the first loan terms from the first property owner
system, publishing a first particular loan opportunity among a
plurality of different loan opportunities, the first particular
loan opportunity being based on agreed first loan terms and the
first property information, the plurality of different loan
opportunities being searchable through an interface provided by an
investment system, providing different loan opportunities of the
plurality of different loan opportunities based on a first query
received from remote systems, in response to receiving selections
of the first particular loan opportunity from the plurality of
different loan opportunities by a first investor system and a
second investor system, the first investor system being operated by
the first investor, the second investor system being operated by
the second investor, providing details of the first particular loan
opportunity including at least some of the property information
identifying the first property to the first investor system and the
second investor system, the first investor system and the second
investor system being remote from each other and operated by the
first investor and the second investor, respectively, receiving a
first commitment from the first investor system to partially fund a
first partial funding of a loan amount associated with the first
particular loan opportunity and a second commitment from the second
investor system to partially fund a second partial funding of the
loan amount associated with the first particular loan opportunity,
enabling a first loan to a first user of the first property owner
system when the loan amount associated with the first particular
loan opportunity is completely funded, distributing, every day,
daily returns to the first and second investors, a first amount of
the daily returns of the first investor being based on an amount of
the first partial funding of the loan amount and a second amount of
the daily returns of the second investor being based on an amount
of the second partial funding of the loan amount, and receiving
first loan payments from the first user and distributing the daily
returns from the first loan payments.
[0017] In some embodiments, the method further comprises updating
destinations of daily returns of the first loan payments in order
for the potential investor to receive the daily returns after the
trade and distributing at least some of the daily returns from the
first loan payments to the potential investor. Confirming the first
investor's interest to sell the first number of first investment
units at the first price to the potential investor may comprise
establishing a communication channel between the first investor and
the potential investor to enable them to negotiate an agreement to
trade, and storing the communication between the first investor and
the potential investor over the communication channel as evidence
of the agreement. The method may comprise generating a trade
contract at least between the first investor and the potential
investor including terms of the agreement and enabling the first
investor and the potential investor to indicate their approval. The
communication channel may be encrypted.
[0018] The method may further comprise updating destinations of
daily returns and determining the second price for the first
investment units takes place at a particular time once a day.
Registering and authenticating the potential investor may comprise
receiving from the potential investor an indication that the
potential investor is an accredited investor.
[0019] In various embodiments, the method further comprising
maintaining the purchase request as being open for purchasing for a
predetermined period of time, the predetermined period of time
being indicated by the purchase request.
[0020] An example method may comprise issuing first investment
units of a first loan investment and assigning the first investment
units to a first investor and a second investor, the first loan
investment being a first loan to a first property owner and secured
by first property of the first property owner, the first loan being
funded by the first and the second investor, issuing second
investment units of a second loan investment and assigning the
second investment units to a third investor and a fourth investor,
the second loan investment being a second loan to a second property
owner and secured by second property of the second property owner,
the second loan being funded by the third and the fourth investor,
the second property being remote from the first property and the
first investor, second investor, third investor and fourth investor
being remote from each other, listing the first investment units
and the second investment units on a transactional exchange,
registering and authenticating a potential investor on the
transactional exchange, providing information through the
transactional exchange to the potential investor regarding the
first loan investment and the second loan investment, receiving a
purchase request from the potential investor to purchase a first
number of first investment units at a first price, confirming the
first investor's interest to sell the first number of first
investment units at the first price to the potential investor,
conducting a trade between the first investor and the potential
investor for the first number of first investment units,
determining a second price for the first investment units based, at
least in part, on the trade, and updating the listing of the first
investment units on the transactional exchange.
[0021] An example system may comprise at least one processor, a
network interface to communicate over a network, and memory, the
memory including instructions to control the at least one processor
to issue first investment units of a first loan investment and
assigning the first investment units to a first investor and a
second investor, the first loan investment being a first loan to a
first property owner and secured by first property of the first
property owner, the first loan being funded by the first and the
second investor, issue second investment units of a second loan
investment and assigning the second investment units to a third
investor and a fourth investor, the second loan investment being a
second loan to a second property owner and secured by second
property of the second property owner, the second loan being funded
by the third and the fourth investor, the second property being
remote from the first property and the first investor, second
investor, third investor and fourth investor being remote from each
other, list the first investment units and the second investment
units on a transactional exchange, register and authenticating a
potential investor on the transactional exchange, provide
information through the transactional exchange to the potential
investor regarding the first loan investment and the second loan
investment, receive a purchase request from the potential investor
to purchase a first number of first investment units at a first
price, confirm the first investor's interest to sell the first
number of first investment units at the first price to the
potential investor, conduct a trade between the first investor and
the potential investor for the first number of first investment
units, determine a second price for the first investment units
based, at least in part, on the trade, and update the listing of
the first investment units on the transactional exchange.
[0022] An example non-transitory computer readable medium
comprising instructions that are executable by a processor. The
instructions may be executable to perform a method. The method may
comprise providing, by a first property owner system to an
investment system, a first loan request to be secured by first
property owned by a first user of the first property owner system,
the first loan request including first property information
identifying the first property, the first property owner system
being remote from the investment system, receiving first loan terms
and a proposed first agreement by the first property owner system
from the investment system, the loan terms being based on an
assessment of first value of the first property by the investment
system, the assessment being based, at least in part, on the
property information of the first property, providing an indication
of agreement to the first loan terms, receiving an indication that
the investment system is publishing on a network site a first
particular loan opportunity among a plurality of different loan
opportunities, the first particular loan opportunity being based on
the agreed first loan terms and the first property information, the
plurality of different loan opportunities being searchable through
an interface provided by the investment system, receiving, after a
first period of time from the investment system, an indication that
a loan based on the first loan terms has been funded by at least a
first investor and a second investor, the first investor and the
second investor having provided an agreement to fund different
portions of the loan through investment system, the first investor
and the second investor being remote from each other and being
different entities, receiving, as directed by the investment
system, a loan amount as indicated by the first loan terms, the
investment system calculating and distributing daily returns to the
first investor and the second investor based on their investment,
prepaying a portion of the first loan amount, by the first property
owner system, a first advanced payment of the loan, portions of the
advanced payment being distributed by the investment system to the
first and second investors, the investment system recalculating
daily returns to account for the first advanced payment, and
receiving an indication from the investor system that the first
investor sold their investment in the loan to a third investor,
whereby the investor system distributes future daily returns to the
second and third investors.
[0023] The loan terms may require any loan agreement to be between
an entity operating the investment system and the first property
owner system. In some embodiments, the method may further comprise
providing a query from the property owner to the investment system,
receiving, by the property owner system, different loan
opportunities of the plurality of different loan opportunities
based on a first query, providing a selection of the first
particular loan opportunity from the plurality of different loan
opportunities by the property owner system to the investment
system, receiving, by the property owner system from the investment
system, details of the first particular loan opportunity including
at least some of the property information identifying the first
property, providing an agreement from the property owner to
purchase an investment position from the second investor, and
receiving distributions of daily returns, a second amount of the
daily returns of the property owner being based on the investment
position from the second investor.
[0024] In various embodiments, the method further comprises
receiving a first agreement from the investor system, the first
agreement being based on a first agreement template from a
plurality of agreement templates, the investor system having
populated the first agreement template based on an identity of the
property owner, the loan amount, the first loan terms, and the
first property information, and providing a signed copy of the
first agreement from the property owner system. The property owner
may receive the loan amount from a financial institution at the
direction of the investment system. The property owner may receive
daily distributions from a financial institution at the direction
of the investment system.
[0025] The method may further comprise registering the first loan,
the first loan indicating that entity operating the investment
system is a sole debtor. In some embodiments, the method further
comprises providing identification information to the investment
system for authentication of the property owner by the investment
system, utilizing a communication channel among the first property
owner system, the first investor system, and the second investor
system for communication over the network, providing new loan terms
of the communication channel, the investment system creating a
secure record of communication in the communication channel,
providing a second query for the secure record from the property
owner system, and receiving the secure record upon authentication
of the second query. In some embodiments, the method further
comprises providing an encryption key to the investment system to
enable the investment system to determine if the property owner is
authorized to receive the secure record.
[0026] In various embodiments, the method further comprises
navigating, by the property owner system to the investment system
and receiving a dashboard viewable by the property owner system,
the dashboard indicating remaining amounts associated with the
loan, payments, prepayments, and duration of loan daily payments
made and future daily payments for any number of loans funded by
the first investor entity using the investment system.
[0027] An example investment system comprises at least one
processor, a network interface to communicate over a network, and
memory. The memory including instructions to control the at least
one processor to provide, by a first property owner system to an
investment system, a first loan request to be secured by first
property owned by a first user of the first property owner system,
the first loan request including first property information
identifying the first property, the first property owner system
being remote from the investment system, receive first loan terms
and a proposed first agreement by the first property owner system
from the investment system, the loan terms being based on an
assessment of first value of the first property by the investment
system, the assessment being based, at least in part, on the
property information of the first property, provide an indication
of agreement to the first loan terms, receive an indication that
the investment system is publishing on a network site a first
particular loan opportunity among a plurality of different loan
opportunities, the first particular loan opportunity being based on
the agreed first loan terms and the first property information, the
plurality of different loan opportunities being searchable through
an interface provided by the investment system, receive, after a
first period of time from the investment system, an indication that
a loan based on the first loan terms has been funded by at least a
first investor and a second investor, the first investor and the
second investor having provided an agreement to fund different
portions of the loan through investment system, the first investor
and the second investor being remote from each other and being
different entities, receive, as directed by the investment system,
a loan amount as indicated by the first loan terms, the investment
system calculating and distributing daily returns to the first
investor and the second investor based on their investment, prepay
a portion of the first loan amount, by the first property owner
system, a first advanced payment of the loan, portions of the
advanced payment being distributed by the investment system to the
first and second investors, the investment system recalculating
daily returns to account for the first advanced payment, and
receive an indication from the investor system that the first
investor sold their investment in the loan to a third investor,
whereby the investor system distributes future daily returns to the
second and third investors.
[0028] An example method comprises receiving, from a first property
owner system by an investment system, a first loan request to be
secured by first property owned by a first user of the first
property owner system, the first loan request including property
information identifying the first property, the first property
owner system being remote from the investment system, assessing a
first value of the first property based, at least in part, on the
property information of the first property, providing first loan
terms to the first property owner system and requesting agreement,
receiving a first agreement to the first loan terms from the first
property owner system, publishing, by the investment system on a
network, a first particular loan opportunity among a plurality of
different loan opportunities, the first particular loan opportunity
being based on the agreed first loan terms and the first property
information, the plurality of different loan opportunities being
searchable through an interface provided by the investment system,
providing different loan opportunities of the plurality of
different loan opportunities based on a first query received from
remote systems, in response to receiving selections of the first
particular loan opportunity from the plurality of different loan
opportunities by a first investor system and a second investor
system, providing details of the first particular loan opportunity
including at least some of the property information identifying the
first property to the first investor system and the second investor
system, the first investor system and the second investor system
being remote from each other and operated by a first investment
entity and a second investment entity, respectively, receiving a
first commitment from the first investor system to partially fund a
loan amount associated with the first particular loan opportunity
and a second commitment from the second investor system to
partially fund the loan amount associated with the first particular
loan opportunity, enabling a first loan to the first user when the
loan amount associated with the first particular loan opportunity
is completely funded, distributing, every day, daily returns to the
first investing entity and the second investing entity, a first
amount of the daily returns of the first investing entity being
based on an amount of the first partial funding of the loan amount
and a second amount of the daily returns of the second investing
entity being based on an amount of the second partial funding of
the loan amount, and receiving first loan payments from the first
user and distributing the daily returns from the first loan
payments.
[0029] An example non-transitory computer readable medium may
comprise instructions executable by a processor. The instructions
may be executable to perform a method. The method may comprise
navigating, using a first investor system, to a first investment
interface on a network provided by an investment system, the
investment system publishing on the first investment interface a
first particular loan opportunity among a plurality of different
loan opportunities, the first particular loan opportunity being
based on first loan terms and first property information, the
plurality of different loan opportunities being searchable through
an interface provided by the investment system, the first property
information identifying a property to secure a first loan of the
first particular loan opportunity, the first particular loan
opportunity being an opportunity to invest in the first loan and no
other loans, the first terms being agreed upon by a first property
owner seeking the first loan, the investment system having assessed
a first value of the first property based, at least in part, on the
property information of the first property, providing, from the
first investor system, a first query to seek loan opportunities,
receiving different loan opportunities of the plurality of
different loan opportunities based on the first query, providing a
selection of the first particular loan opportunity from the
different loan opportunities, in response to the selections of the
first particular loan opportunity from the plurality of different
loan opportunities by the first investor system, receiving details
of the first particular loan opportunity including at least some of
the property information identifying the first property to the
first investor system and receiving an indication of a second
commitment to invest by a second investor in the first particular
loan opportunity, the first investor system and a second investor
system being remote from each other and operated by a first
investment entity and the second investor, respectively, providing
a first commitment from the first investor system to partially fund
a first partial funding of a loan amount associated with the first
particular loan opportunity, a second commitment from the second
investor system being already provided to the investment system to
partially fund a second partial funding of the loan amount
associated with the first particular loan opportunity, receiving an
indication that a first loan is to be provided to the first
property owner when the loan amount associated with the first
particular loan opportunity is completely funded, and receiving
distributions, every day, of daily returns, a first amount of the
daily returns of the first investor being based on an amount of the
first partial funding of the loan amount of the first loan.
[0030] The method may further comprise receiving distributions of
daily returns of the first investor on the first day that a loan
associated with the first particular loan opportunity is provided.
In some embodiments, the method may further comprise receiving an
agreement to be signed by the first investor, second investor, and
entity operating the investment system to agree to fund the loan
and receive distributions, the agreement being populated based on
an identity of the first property owner, an identity of the first
investing entity, an identity of the second investing entity, the
loan amount, the first loan terms, and the first property
information to create a first agreement, and providing a signed
copy of the agreement to the investment system.
[0031] In some embodiments, the method may further comprise
navigating, by the first investor system, to the first investment
interface on the network provided by the investment system, the
investment system publishing a second particular loan opportunity
of the plurality of loan opportunities, the second particular loan
opportunity being for a second loan secured by second property
owned by a second property owner of the second property owner
system, second property information identifying the second
property, the second property owner system being remote from the
investment system and the first property owner system, the first
property owner being different than the second property owner, the
second particular loan opportunity being an opportunity to invest
in the second loan and no other loans, the second terms being
agreed upon by a second property owner seeking the second loan, the
investment system having assessed a second value of the second
property based, at least in part, on the property information of
the second property, providing, from the first investor system, a
second query to seek loan opportunities, receiving different loan
opportunities of the plurality of different loan opportunities
based on the second query, providing a selection of the second
particular loan opportunity from the different loan opportunities,
in response to the selections of the second particular loan
opportunity from the plurality of different loan opportunities by
the first investor system, receiving details of the second
particular loan opportunity including at least some of the property
information identifying the second property to the first investor
system, providing a second commitment from the first investor
system to partially fund a first partial funding of a loan amount
associated with the second particular loan opportunity, receiving
an indication that a second loan is to be provided to the second
property owner when the loan amount associated with the second
particular loan opportunity is completely funded, and receiving
distributions, every day, of daily returns of the first investor, a
second amount of the daily returns of the first investor being
based on an amount of the first partial funding of the loan amount
of the second loan.
[0032] The investment system may provide instructions over the
network to a financial institution to distribute the daily returns.
Receiving distributions, every day, of daily returns, may comprise
receiving distributions, every day, of daily returns from a
financial institution that received instructions from the
investment system to provide the daily returns. A facilitating
entity that operates the investment system may register the first
loan as a sole debtor.
[0033] In various embodiments, the method further comprising
authenticating the first property owner of the first property owner
system, the first investor of the first investor system, and the
second investor, providing a communication channel among the first
property owner system, the first investor system, and the second
investor system for communication over the network, creating a
secure record of communication in the communication channel among
the first property owner system, the first investor system, and the
second investor system, providing a second query for the secure
record from the first investor system, and receiving the secure
record upon authentication of the second query. The method may
further comprise providing an encryption key to determine if the
first investor is authorized to receive the secure record.
[0034] The method may further comprise navigating to a dashboard
viewable by the first investor system over the network, the
dashboard indicating daily payments made and future daily payments
for any number of loans funded by the first investor entity using
the investment system.
[0035] An example investment system may comprise at least one
processor, a network interface to communicate over a network, and
memory, the memory including instructions to control the at least
one processor to navigate to a first investment interface on a
network provided by an investment system, the investment system
publishing on the first investment interface a first particular
loan opportunity among a plurality of different loan opportunities,
the first particular loan opportunity being based on first loan
terms and first property information, the plurality of different
loan opportunities being searchable through an interface provided
by the investment system, the first property information
identifying a property to secure a first loan of the first
particular loan opportunity, the first particular loan opportunity
being an opportunity to invest in the first loan and no other
loans, the first terms being agreed upon by a first property owner
seeking the first loan, the investment system having assessed a
first value of the first property based, at least in part, on the
property information of the first property, provide a first query
to seek loan opportunities, receive different loan opportunities of
the plurality of different loan opportunities based on the first
query, provide a selection of the first particular loan opportunity
from the different loan opportunities, in response to the
selections of the first particular loan opportunity from the
plurality of different loan opportunities, receive details of the
first particular loan opportunity including at least some of the
property information identifying the first property and receiving
an indication of a second commitment to invest by a second investor
of a second investor system in the first particular loan
opportunity, the first investor system and the second investor
system being remote from each other and operated by a first
investment entity and a second investment entity, respectively,
provide a first commitment from the first investor system to
partially fund a first partial funding of a loan amount associated
with the first particular loan opportunity, a second commitment
from the second investor system being already provided to the
investment system to partially fund a second partial funding of the
loan amount associated with the first particular loan opportunity,
receive an indication that a first loan is to be provided to the
first property owner when the loan amount associated with the first
particular loan opportunity is completely funded, and receive
distributions, every day, of daily returns, a first amount of the
daily returns of the first investor being based on an amount of the
first partial funding of the loan amount of the first loan.
[0036] An example method comprises navigating, by the first
investor system, to the first investment interface on the network
provided by the investment system, the investment system publishing
a second particular loan opportunity of the plurality of loan
opportunities, the second particular loan opportunity being for a
second loan secured by second property owned by a second property
owner of the second property owner system, second property
information identifying the second property, the second property
owner system being remote from the investment system and the first
property owner system, the first property owner being different
than the second property owner, the second particular loan
opportunity being an opportunity to invest in the second loan and
no other loans, the second terms being agreed upon by a second
property owner seeking the second loan, the investment system
having assessed a second value of the second property based, at
least in part, on the property information of the second property,
providing, from the first investor system, a second query to seek
loan opportunities, receiving different loan opportunities of the
plurality of different loan opportunities based on the second
query, providing a selection of the second particular loan
opportunity from the different loan opportunities, in response to
the selections of the second particular loan opportunity from the
plurality of different loan opportunities by the first investor
system, receiving details of the second particular loan opportunity
including at least some of the property information identifying the
second property to the first investor system, providing a second
commitment from the first investor system to partially fund a first
partial funding of a loan amount associated with the second
particular loan opportunity, receiving an indication that a second
loan is to be provided to the second property owner when the loan
amount associated with the second particular loan opportunity is
completely funded, and receiving distributions, every day, of daily
returns of the first investor, a second amount of the daily returns
of the first investor being based on an amount of the first partial
funding of the loan amount of the second loan.
BRIEF DESCRIPTION OF THE DRAWINGS
[0037] FIG. 1 is an environment for a property investment and
liquidity system in some embodiments.
[0038] FIG. 2 depicts a flow chart for fulfilling a property
investment opportunity in some embodiments.
[0039] FIG. 3 depicts a property investment and liquidity system in
some embodiments.
[0040] FIG. 4 depicts an example, property owner module in some
embodiments.
[0041] FIG. 5 is an example loan facilitation module in some
embodiments.
[0042] FIG. 6 is a flowchart for paying returns to investors in
some embodiments.
[0043] FIG. 7 is a method for a property owner to create a loan
opportunity.
[0044] FIG. 8 depicts a method for an investor to find,
investigate, and commit to one or more loan opportunities in some
embodiments.
[0045] FIG. 9 is a flow chart for a method for investing in some
embodiments.
[0046] FIG. 10 is a dynamic graphical user interface (GUI) for an
investor on an investor's digital device.
[0047] FIG. 11 is an investor dynamic graphical user interface
(GUI) for an investor on an investor's digital device.
[0048] FIG. 12 is an investor dynamic graphical user interface
(GUI) for an investor to research a property on an investor's
digital device.
[0049] FIG. 13 is an investor dynamic graphical user interface
(GUI) for an investor to research a potential borrower on an
investor's digital device.
[0050] FIG. 14 is an investor dynamic graphical interface (GUI)
requesting information regarding whether the investor is an
accredited investor.
[0051] FIG. 15 is an investor dynamic graphical interface (GUI)
that may be depicted in the application of the investor that
enables the investor to determine an amount of investment in the
loan opportunity
[0052] FIG. 16 depicts an example final confirmation of a loan
investment agreement in some embodiments.
[0053] FIG. 17 is a flowchart for an investor to sell their
investment to another investor in some embodiments.
[0054] FIG. 18 is a dynamic graphical user interface (GUI) for an
investor that enables the investor to buy the investments of the
particular loan opportunity of other investors or sell all or part
of their investments of the particular loan opportunity.
[0055] FIG. 19 is a dynamic graphical user interface (GUI) for an
investor that enables the investor to sell all or part of their
investments.
[0056] FIG. 20 is a dynamic graphical user interface (GUI) to
confirm the investor's intention to sell their investment.
[0057] FIG. 21 is a method for determining daily payments in some
embodiments.
[0058] FIG. 22 depicts a spreadsheet for a calculation of a loan
setup as an example.
[0059] FIG. 23 depicts a spreadsheet for payments over the life of
the loan in an example.
[0060] FIG. 24 depicts a block diagram of an example digital device
according to some embodiments.
[0061] FIG. 25 is an environment for a property investment and
liquidity system in some embodiments.
[0062] FIG. 26 is an example exchange module in some
embodiments.
[0063] FIG. 27 is a flowchart of an interaction with a
transactional exchange in some embodiments.
DETAILED DESCRIPTION
[0064] An example property investment and liquidity system enables
property owners (e.g., homeowners) to access liquidity based on
their property while enabling diverse investors to earn daily
returns on investment in that property. In one example, a property
owner may interact with the property investment and liquidity
system over a network to investigate loan opportunities, including
term, amount of loan, applicable rates, fees, and the like. If
there is an acceptable loan opportunity, the property owner may
list their property and loan information on the property investment
liquidity system for investment. Any number of potential investors
may access the property investment and liquidity system over the
network to review possible properties and loan information for
possible investment.
[0065] The property investment and liquidity system enables
different, unrelated investors to search one or more properties and
investment opportunities (as well as perform research on the
property and/or the investment opportunity). An investor may select
a property and a select an amount to invest into the desired loan
of the property owner; a single investor may choose to invest only
a portion of the desired loan. Once there is a commitment to fund
the entire loan from the investor group (i.e., each investor of the
group having committed to invest into the desired loan), the
property investment and liquidity system may create the loan
instrument as well as receive and transfer funds from the investors
to the property owner. In some embodiments, the property is
residential real estate, such as a home and related land.
[0066] In various embodiments, the property investment and
liquidity system provides daily returns to each investor. The
property investment and liquidity system may also enable the
property owner to, at any time, pay down a portion of the loan
(e.g., any amount of the loan or at least a minimum amount that is
less than all of the loan) at any time during the life of the loan.
The property investment and liquidity system may provide all or
part of the property owner's pay down payment to the investors.
[0067] Investors may also choose to sell their portion of the
investment or acquire additional portions of the investment from
other investors. For example, a first investor may have originally
committed to investing 15% of a property loan while a second
investor may have originally committed to investing 7% of the
property loan. The second investor may choose to sell half of their
investment to the first investor. Using the property investment and
liquidity system, the first investor may buy the investment from
the second investor. After the transaction, the first investor may,
in this example, have invested (e.g., own) 18.5% of the loan and
the second investor may have invested (e.g., own) 3.5% of the loan.
Subsequently, the property investment and liquidity system may
update what daily returns to provide to the first and second
investor based on the new loan investments.
[0068] In some embodiments, there may be a property investment
exchange that enable different individuals to find and research
investment opportunities based on the loans of the property
investment and liquidity system. For example, the property
investment exchange may enable different investors to indicate the
value (e.g., investment and loan information) of their property
investment. Individuals or any third-party entity may select and
research opportunities and purchase any number of loan
opportunities from any number of investors for any number of
properties at rates published by the property investment exchange.
It may be appreciated that pricing of investment opportunities may
be reflected by the transactions and publications reflected in the
property investment exchange.
[0069] FIG. 1 is an environment 100 for a property investment and
liquidity system in some embodiments. FIG. 1 includes a property of
interest 102, property owner systems 104A through 104N, investor
systems 106A through 106N, a property investment and liquidity
system 108, and a financial institution 110 that communicate over a
communication network 112. The property owner systems 104A through
104N, investor systems 106A through 106N, and property investment
and liquidity system 108 may each include one or more digital
devices. A digital device is any device that includes at least one
processor and memory. Digital devices are further discussed with
regard to FIG. 24.
[0070] FIG. 1 depicts an example architecture of a system for: (1)
researching loan opportunities for property owners, (2) for
publishing loan opportunities across the network to unrelated
investors for review, (3) for enabling investors to research and
search loan opportunities in a centralized system, (4) for
creating, providing, and collecting documents from property owners
for loan creation and from investors for investing in a loan
opportunity, (5) for collecting funds, distributing loan funds, and
providing returns to the investor, and (6) for enabling investors
to find, sell, and/or buy investments in existing loan
opportunities.
[0071] In various embodiments, the property investment and
liquidity system 108 is a centralized system that communicates with
different property owners (e.g., home owner systems 104A-104N) and
may be located anywhere in the world. As such, the property
investment and liquidity system 108 may be a centralized system
that allows different property owners to research, negotiate loans,
enable loan documents to be created, receive loan documents, and/or
facilitate funding. Further, the property investment and liquidity
system 108 may enable property owners to prepay (e.g., pay extra)
any amount of a loan early at any time.
[0072] The property investment and liquidity system 108 may utilize
the same network and be a centralized system and/or server for
publishing information regarding loan opportunities to interested
potential investors. The interested potential investors may
communicate with the property investment and liquidity system 108
using one or more investor systems 106A-106N. The investors may be
unrelated to each other (e.g., from different, independent
third-parties) and removed from each other.
[0073] An investor may utilize an application on their device
and/or navigate to a web site with information from the property
investment and liquidity system 108 (in some embodiments, the
property investment and liquidity system 108 may host a web site
and/or provide information to any number of applications on any
number of investor systems).
[0074] Investors may research loan opportunities based on financial
information (e.g., loan duration, rate, expected yield), borrower
information (e.g., credit rating, financial history), property
information (e.g., type of property, location of property,
desirability of property, financial information of property (e.g.,
price of property, amount of preexisting debt secured by the
property, history of property, features of the property), and/or
any combination of the above. In one example, an investor using the
investor system 106A may search using crafted queries a database of
properties and/or loan opportunities (e.g., desired loans from
property owners) for properties and/or loans of interest.
[0075] The property investment and liquidity system 108 may also,
in some embodiments, control fund flows (e.g., to fund the loan for
the property owner, receive payments form the property owner, and
distribute returns to the investors) and/or may receive funds as
well as control funds. In some embodiments, one or more financial
institutions 110 may store funds and/or hold them in trust or
escrow on behalf of the property investment and liquidity system
108 rather than the property investment and liquidity system 108
receiving money from different systems and/or individuals.
[0076] The property investment and liquidity system 108 may, in
some embodiments, calculate daily returns to provide to investors
once the loan is funded, provide daily returns, and enable
borrowers to prepay any amount of the loan. If a borrower prepays
an amount of the loan, the property investment and liquidity system
108 may split the prepayment among the investors based on their
percentage funding of the loan, and recalculate daily returns to
ensure that the daily returns are correct in view of the
change.
[0077] Due to the centralization of the property investment and
liquidity system 108, the property investment and liquidity system
108 enables investors and property owners to work together. The
property investment and liquidity system 108 is centralized among
the parties (e.g., loan borrower, property collateral, and
investors) and, as a result, the property investment and liquidity
system 108 may track investments, payments, percentage ownership of
the loans, returns, and the like. As such, the life cycle of the
investment has greatly improved security. For example, if there are
multiple systems engaged in the process, a single attack in the
middle of the system may damage the financial vehicle as well as
any number of parties. In this example, the property investment and
liquidity system 108 tracks all or most aspects of the loan thereby
improving trustworthiness and security. Further, speed of the
process of loan creation, publication, investment, payment,
returns, and the like are improved by a centralized property
investment and liquidity system 108 because parties of a
decentralized architecture require individual, secured,
authenticated relationships with consistent software and supported
protocols.
[0078] As such, in a system where there are many unrelated parties
for loan creation, funding, searching, and the like, investment
property is subject to many processes that slow each individual
loan. Further, banks or other financial institutions are not
positioned to establish relationships with individual investors
regarding a single loan opportunity. Rather, a financial
institution will create opportunities through the grouping of loans
into a derivative or ETF. While there is nothing wrong with the
approach, individual borrowers are not allowed to partially prepay
their loans, investors cannot choose to invest in a single,
desirable property, and daily returns are simply not available
without a centralized system such as that depicted in FIG. 1.
[0079] The property of interest 102 may be any real estate
property. In many examples discussed herein, the property may be
referred to as being a home property (e.g., residential). It may be
appreciated that the property may be residential or commercial.
Further, the property 102 may refer to a single real estate
property or any number of real estate properties (e.g., a plurality
of houses, apartments, condominiums, stores, warehouses, storage
facilities, and/or the like). As depicted in FIG. 1, property or
interest 102 may be a house of many houses located at a particular
address.
[0080] In one example, a property owner may seek a loan secured by
their residential property. The property owner may reach out to the
property investment and liquidity system 108 to seek a loan. The
property investment and liquidity system 108 may come to an
agreement of terms regarding the loan and then publish the loan for
individual, and remote investors to select the loan opportunity for
investing. Once there is sufficient investment committed to service
the loan, an operator (i.e., an entity) of the property investment
and liquidity system 108 may enter into an agreement with the
property owner. The property investment and liquidity system 108
and/or the operator may register the loan with the county
registrar. In this example, the entity that operates or works with
the property investment and liquidity system 108 is the registered
entity that holds the property lien. The property investment and
liquidity system 108 may facilitate funds from the investors to
fund the loan and provide the loan to the property owner.
Subsequently, the property investment and liquidity system 108
facilitates daily returns to the investors.
[0081] FIG. 2 depicts a flow chart for fulfilling a property
investment opportunity in some embodiments. FIG. 2 depicts a
property owner 202 (e.g., utilizing home owner system 104A), a
property investment and liquidity system 204, a first investor 206,
a second investor 208, and a third investor 210. The property
investment and liquidity system 204 may be, for example, property
investment and liquidity system 108. The first, second, and third
investors 206, 208, and 210 may interact with the property
investment and liquidity system 204 utilizing investor systems
106A, 106B, and 106C, respectively. Although FIG. 2 depicts a
single property owner 202 and three investors, it may be
appreciated that there may be any number of home owners that own
any number of properties and any number of investors.
[0082] In step 212, the property owner 202 (e.g., via the home
owner system 104a) may navigate over the communication network 112
to communicate with the property investment and liquidity system
204 to request a loan backed by a property owned, in whole or part,
by the property owner 202. The property owner 202 may provide
property information. Property information may include, for
example, address, type of property (e.g., house, commercial, or the
like), and features or property (e.g., number of bedrooms,
bathrooms, square feet, views, updates, pool, heating, air
conditioning, and the like). The property owner 202 may provide
property finance information such as purchase price, value of
similar homes in the area, home improvements, history of property
(e.g., physical changes, destruction, damage, changes to real
estate close to property, and/or the like), and/or financial
history (e.g., past purchase amounts, preexisting loans, liens,
easements, encumbrances, and/or the like).
[0083] In step 214, the property investment and liquidity system
204 may perform diligence of the property and negotiate loan terms
with the property owner 202. For example, the property investment
and liquidity system 204 may perform a title search on the property
to confirm ownership (e.g., to confirm property owner 202 is the
owner of the property) as well as determine past purchase amounts,
preexisting loans, liens, easements, encumbrances, and/or the
like).
[0084] The property investment and liquidity system 204 may also
determine equity in the house, assess debt and evaluate the
investment opportunity. The property investment and liquidity
system 204 may negotiate terms with the property owner 202
regarding duration of loan, amount, rates, fees, opportunities for
prepayments, discuss expectations, and/or the like. in some
embodiments, the property investment and liquidity system 204 may
not negotiate any of the terms of the loan opportunity and may only
provide loan terms that are acceptable to property investment and
liquidity system 204.
[0085] In step 216, an agreement is made between the property owner
202 and the property investment and liquidity system 204.
[0086] In step 218, the property investment and liquidity system
204 presents pictures of the property and information regarding the
property and the loan opportunity to interested potential
investors. All or a part of the property information may be
provided, as well as financial information regarding the purchase
price of the property, existing debts and/or encumbrances, past
prices for the property, and the like. Further the property
investment and liquidity system 204 may provide investment
information including the amount of loan requested, the rate,
expected yield, duration of loan, and/or the like.
[0087] In some embodiments, the property investment and liquidity
system 204 may estimate or prepare hypothetical rates which may be
provided to the property owner with a request of their interest in
the opportunity. The property owner may respond with their interest
in the loan based on an estimated or hypothetical rate. The
property investment and liquidity system 108 may indicate the
property owner's interest as well as the rates of interest. The
property investment and liquidity system 108 may estimate a rate
for the property based on similar properties in the community
proximate to the property, based on the local economy, based on the
state of local real estate, based on new or moving businesses in
the area, based on natural disasters, based on property
improvements, and/or the like.
[0088] In various embodiments, the property investment and
liquidity system 204 may provide an interface depicting any number
of properties and investment opportunities to any number of
potential investors. In one example, investors may utilize the
communication network 112 to communicate with the property
investment and liquidity system 204, review opportunities, and
consider investment. In some embodiments, the property investment
and liquidity system 204 provides a search interface that enables
the investors to search for particular property opportunities
(e.g., houses with 4 bedrooms or more, within a particular region,
built at or after a certain date and/or the like) and/or search for
particular investment opportunities (e.g., an investment
opportunity for over or under a predetermined amount, for a
particular loan duration, for under a particular loan duration, at
or above a particular rate, at or above a particular yield, and/or
the like).
[0089] Different investors may review the investment opportunity
and conduct research (e.g., independently and/or through the
property investment and liquidity system 204) on the investment
opportunity.
[0090] In one example for FIG. 2, the property owner 202 desires a
$100 k loan using his $500 k home as collateral. The home has an
existing mortgage with a current value of $200 k. The property
owner may wish for a one year loan at a rate of 7.9%. Any number of
investors may invest any amount until the desired loan of $100 k is
reached.
[0091] In step 220, a first investor 206 offers an investment of
65% of the loan. In this example, the first investor 206 offers an
investment of $65 k. In step 222, a second investor 208 offers an
investment of 30% of the loan or an investment of $30 k. In step
224, the third investor 210 offers to complete the investment of 5%
or $5 k. Each investor may be aware of any portion committed by
another investor (although they may or may not be aware of the
investor's identity).
[0092] It may be appreciated that an investor may be an individual,
institution, organization, or the like.
[0093] In step 226, once investors have committed investment of the
full amount of the loan, the property investment and liquidity
system 204 facilitates the loan by creating the necessary
documents, filing updates to title, and/or the like. The property
investment and liquidity system 204 may contact the property owner
202 to inform them that the loan has been funded and provide
additional confirming loan information such as date that the loan
will be funded, duration of loan, dates for payment, and/or the
like. Similarly, the property investment and liquidity system 204
may contact each investor to inform them of similar
information.
[0094] In step 228, the first investor 206, second investor 208,
and third investor 210 each transfer funds to the property
investment and liquidity system 204. In some embodiments, the
property investment and liquidity system 204 does not receive the
funds but rather the funds are received and/or held by a
third-party such as a financial institution.
[0095] In step 230, the property investment and liquidity system
204 may retain a retention payment. The retention payment is
further discussed herein. In some embodiments, the property
investment and liquidity system 204 may retain a first month
payment of the loan at the inception of the loan in order to
provide daily returns to the investors in the first month of the
loan. The retention payment may include fees for services, and/or
the like as well.
[0096] In step 232, the property investment and liquidity system
204 provides the loan proceeds (e.g., the funds without the
retention payment) to the property owner 202.
[0097] FIG. 3 depicts a property investment and liquidity system
108 in some embodiments. The property investment and liquidity
system 108 includes a communication module 302, a property owner
module 304, an opportunity assessment module 306, a publication
module 308, an investor module 310, an investment module 312, a
loan facilitation module 314, a periodic returns module 316, a
recalculation module 318, an exchange module 320, a document module
322, and a loan investment datastore 324.
[0098] The communication module 302 may be configured to
communicate with any of the home owner systems 104A through 104N,
and in the investor systems 106A through 10N, and or optional
financial institution 110 via the communication network 112. The
communication module 302 may also enable communication between
modules, the loan investment data store 324, external systems,
external data stores, and/or the like.
[0099] The property owner module 304 may be configured to enable
property owners to communicate with the property investment and
liquidity system 108, provide property information, provide loan
information (e.g., such as the amount of loan that they wish, the
duration of the loan, rate of the loan, and the like), negotiate a
loan opportunity with the property investment and liquidity system
108, research terms for similar loans for similar properties,
provide current financial information regarding the property and/or
the homeowner, sign agreements and representations, receive loan
funds, provide payments, and/or the like.
[0100] The property owner module 304 is further discussed regarding
FIG. 4.
[0101] The opportunity assessment module 306 may be configured to
assess loan opportunities from the property owner, provide required
rates, assess property information, assess loan information,
determine fees (e.g., retention payments), and/or the like. In
various embodiments, the opportunity assessment module 306 is
utilized to construct a loan opportunity for negotiation or for
acceptance by the property owner based on the information provided
by the property owner. Further, the opportunity assessment module
306 may construct a loan opportunity also based on similar
properties, similar loans, historical data regarding the homeowner,
similar homeowners, risk categories, and/or the like.
[0102] The publication module 308 may be configured to provide
graphical user interfaces to receive information from the property
owner, enable searching of similar properties in similar loans to
the property owner and or investors, and provide listings of
available loan opportunities as well as the properties that secure
those loan opportunities. In various embodiments, the publication
module 308 enables the property owner and or investors to search a
database of properties and or loan opportunities for research on
investments and/or to find investments to invest in.
[0103] For example, the publication module 308 may provide a
website or information to website that enables property owners
and/or investors to search loan opportunities or established loans
as well as properties that back loan opportunities were established
loans. The publication module 308 may publish pictures, addresses,
and information regarding the property such as property values,
values over time, locations of the property on a map, graphs
regarding demographics and financial opportunity in the area, and
the like. Example information published by the publication module
308 is depicted in FIGS. 10-16.
[0104] The investor module 310 may be configured to enable
investors to register with the property investment and liquidity
system 108, search property and loan opportunities through
graphical user interfaces published by the publication module 308,
investigate a dollar amount available in one or more loan
opportunities for investment, research yields and rates, review
duration of possible loans, research property, and/or the like. The
investor module 310 may be configured to enable investors to commit
to investing in one or more loan opportunities by enabling them to
review and sign agreements and make a financial transaction that
may ultimately be used to fund the loan.
[0105] The investment module 312 may be configured to perform real
time investment tracking including when investors invest in a loan
opportunity, amount of investment, interest in additional investors
for each loan opportunity, and the like. In various embodiments,
the investment module 312 tracks payments from the borrower in real
time, payments from retention payment and money held in trust to
investors, and overall balances.
[0106] The loan facilitation module 314 may be configured to
facilitate receipt of funds to fund the loan, provide funds to the
property owner, retain retention payments, enable returns to
investors, track investors, and/or the like. In some embodiments,
the loan facilitation module 314 may be configured to communicate
with one or more financial institutions including, for example, a
financial institution associated with the property owner, and
financial institutions associated with one or more investors.
[0107] The loan facilitation module 314 is further described in
FIG. 5.
[0108] The returns module 316 may be configured to calculate daily
returns for each investor based on the loan amount, rates, duration
of loan, number of investors, percentage of loan that each investor
funded, and/or the like. In various about it is the loan
facilitation module 314 may utilize returns information from the
returns module 316 to distribute daily returns to any number of
investors regarding a particular loan.
[0109] The recalculation module 318 may be configured to
recalculate daily returns based on receipt of the prepayment from
the property owner. For example, a property owner may receive a
loan for a particular some. At some point, the property owner may
pay back a larger portion of the fund than what was due at that
particular time. The recalculation module 318 and/or the returns
module 316 may recalculate the daily returns for any number of
investors based on the change in the outstanding loan amount.
[0110] The exchange module 320 may be configured to enable and
investor to sell their position and alone (e.g., all or part of
their investment) to one or more other investors. For example, an
investor may have initially invested 20% of the total loan amount
in a particular loan opportunity. That investor may sell their full
position to another investor in exchange for payment.
[0111] In various embodiments, the exchange module 320 may operate
a centralized exchange that lists existing loans, positions of
investors, price for the position of each investor that lists their
loan with the exchange, and the like. In various embodiments, the
exchange module 320 may offer derivatives or ETFs based on
investor's particular positions. For example, a financial vehicle
may be created based on all or some of a particular investor's
particular investments, particular types of properties, particular
types of loans, or the like. Pricing for listed existing loans,
investor investments, financial vehicles, and the like may be based
on a previous purchase or purchases of similar financial
opportunities.
[0112] It may be appreciated that there may be any number of
modules of the property investment and liquidity system 108. For
example, there may be more modules that perform all or more of the
functions discussed regarding FIG. 3. In another example, there may
be less modules that perform all, less, or more of the functions
discussed regarding FIG. 3.
[0113] FIG. 4 depicts an example, property owner module 304 in some
embodiments. The property owner module 304 comprises a loan
information module 402, a title search module 404, a similar
properties module 406, and a location module 408. The loan
information module 402 is configured to receive property
information and loan proposal information from a property
owner.
[0114] In various embodiments, a property owner may register with
the property investment and liquidity system 108. The property
owner may provide identification information, property information,
a password and the like. The property investment and liquidity
system 108 may confirm ownership of the property (e.g., through a
title search) and/or other confirming information.
[0115] The loan information module 402 may be configured to
interact with a property owner regarding a particular property
and/or loan opportunity. In one example, a property owner may
communicate with the loan information module 402 of the property
investment and liquidity system 108 via communication network. The
property owner may utilize an application or web browser to
communicate with the property investment and liquidity system
108.
[0116] The loan information module 402 may provide an interface
such as a graphical user interface to the property owner requesting
property information such as address of the property, last assessed
value of the property, purchase price for the property, history of
pricing for the property, features of the property, location of the
property, improvements to the property, liabilities associate with
the property, or the like. The loan information module 402 may
further request in the interface information regarding the borrower
including, for example, legal name, birthdate, identification
information (e.g., driver's license number, passport information,
photographs of driver's license, photograph of passport pages), and
the like.
[0117] The loan information module 402 may further request
information regarding the financial health the borrower including,
for example, credit score, amount of debt, any existing
encumbrances or liens on the property, income, income history of
the borrower, income produced by the property, judgments against
the property or the borrower, or other information that may
indicate financial risk or health of the borrower.
[0118] The title search module 404 may be configured to perform a
title search on the property in question to confirm ownership of
the property, past encumbrances of the property, blemishes of
title, liabilities, or the like. In some embodiments, the title
search module 404 may be configured to update titles of properties
when loans are created.
[0119] The title search module 404 may be configured to receive
address information and/or any other information regarding the
property in question. The title search module 404 may engage one or
more title databases to retrieve information regarding the property
including title history, changes in ownership, and the like. In
some embodiments, the title search module 404 may send email or
other contact information to title search companies to engage with
searching and clearing title of these properties.
[0120] The similar properties module 406 may be configured to
assist in the search of other similar properties. For example, the
similar properties module 406 may be configured to search similar
properties in specific locations, similar locations, or the like.
The similar properties module 406 may highlight similarities
between properties including pricing of similar properties changes
in value over time differences between properties that may
influence risk reward or the like.
[0121] The similar properties module 406 may utilize any number of
public databases to search for similar properties. For example,
property information may include the type of property, number of
rooms, square footage, year built, use of the property, size of
lot, and other features may be utilized to formulate queries into
property public databases to retrieve information regarding
properties that may be similar for one or more of the above
characteristics.
[0122] It may be appreciated that there may be any number of
modules of the property owner module 304. For example, there may be
more modules that perform all or more of the functions discussed
regarding FIG. 4. In another example, there may be less modules
that perform all, less, or more of the functions discussed
regarding FIG. 4.
[0123] FIG. 5 is an example loan facilitation module 314 in some
embodiments. The loan facilitation module 314 may include a
payments range module 502, a retention module 504, and an initial
funding module 506. The payments range module 502 may be configured
to create a loan payment and amortization schedule (e.g.,
calculated daily) for each investor. Because each day's payment is
more or less the same as the previous day's, the borrower may pay
every 30 days while the investor gets a smooth stream of daily
payments.
[0124] The retention module 504 determines fees paid to the service
as well as an initial retention payment that may be held in trust
or escrow. The retention payment may be held before the borrower
receives the loan funds. Daily payments to the investors may come
from the retention payment (e.g., from trust or escrow). As daily
payments are made, the money from the retention payment is reduced.
The borrower's first payment may go into the same trust or escrow
used to store the retention payment. Thereafter, the money from the
first payment may then be used pay the investors daily returns
until the borrower's next payment.
[0125] The initial funding module 506 may be configured to break
down an initial loan amount into shares (1 penny per share).
Subsequent cashflow splits may be based on an investors' ownership
amounts. The initial funding module may split principal payments
every day for payment to the nearest penny rounded down. Interest
payments may also be split every day and paid out to the nearest
penny rounded down.
[0126] In some embodiments, the initial funding module 506 may
calculate changes in loan payouts if the borrower makes an
additional unscheduled payment.
[0127] The payment process is further discussed herein.
[0128] It may be appreciated that there may be any number of
modules of the loan facilitation module 314. For example, there may
be more modules that perform all or more of the functions discussed
regarding FIG. 5. In another example, there may be less modules
that perform all, less, or more of the functions discussed
regarding FIG. 5.
[0129] FIG. 6 is a flowchart for paying returns to investors in
some embodiments. In step 602, the loan facilitation module 314 may
provide funding for the property owner's loan to the property owner
202. In this example, the property owner 202 may have interacted
with the property owner module 304 to describe the property,
provide property information, provide borrower information, and
provide financial information for the desired loan. The opportunity
assessment module 306 may have assessed the property and the terms
of the potential loan. The opportunity assessment module 306 may
further assist in negotiation with the property owner 202 and/or
communication the property owner 202 to ensure that the property
owner 202 understands the risks and opportunities involved. In some
embodiments, the opportunity assessment module 306 and/or the title
search module 404 of the property owner module 304 may perform a
title search of the property, confirm debts or encumbrances related
to the property, assess the quality and value of the property,
and/or the like.
[0130] If the property owner 202 accepts the loan terms the
property owner module 304 may generate forms or documents to create
the loan opportunity. In some embodiments, the property owner
module 304 retrieves one or more agreement templates and populates
fields of the agreement templates based on the property
information, borrower information, amount of loan requested,
duration of loan, rates, and/or the like. The property owner module
304 may provide the documents electronically to the property owner
202 to enable the property owner 202 to review the documents, ask
any questions, and the like. The property owner 202 may, in some
embodiments, physically or digitally sign the documents and return
the documents electronically back to the property owner module 304
which may save them in the document module 322 or the loan
investment data store 324.
[0131] Further, in this example, the publication module 308 may
publish details of the property that backs the loan (e.g., address,
location, value, characteristics of the property, and the like),
loan information (e.g., rates, amount requested, duration of loan),
borrower information (e.g., borrower name, credit risk, and/or
signed documents), and the like. The publication module 308 may
enable investors to review multiple different properties and flip
through various cards related to properties and loan opportunities
to search for desirable potential opportunities.
[0132] In this example, the first investor 206 may have invested
40% of the loan, the second investor 208 may have invested 35% of
the loan and the third investor 210 may have invested 25% of the
loan. Once funds have transferred from the investors to the
property investment and liquidity system 204, the loan facilitation
module 314 may take out a retention payment from the funds provided
from the investors. All or some of the retention payment may be
stored in trust or escrow and used to pay daily returns back to the
first, second, and third investors 206 through 210.
[0133] It will be appreciated that, in some embodiments, the
investment module 312 or the loan facilitation module 314 may
calculate the total value of the loan to provide to the borrower as
well as the retention payment necessary to pay the investors during
a first pay period before the property owner 202 has provided the
first payment. The property investment and liquidity system 204 may
then publish an amount of the requested loan which includes the
amount of the loan desired by the property owner 202 as well as the
retention payment.
[0134] In step 602, the loan facilitation module 314 provides the
desired loan amount to the property owner 202. In various
embodiments, the loan facilitation module 314 may provide the
desired loan amount to a financial institution of the property
owner 202 or generate a check to be mailed to the property owner
202.
[0135] In step 604, the returns module 316 may provide the first
day daily returns to the first investor 206. Similarly, in step
606, the returns module 316 may provide the first day daily returns
to the second investor 208. In step 608, the returns module 316 may
provide the first day daily returns to the third investor 210. The
amount of the return for each investor may be based on the
percentage of the loan that the investors invested.
[0136] In step 610, periodic payments are paid from the property
owner 202 to the property investment and liquidity system 204. In
some embodiments, the property owner 202 orders their financial
institution to provide periodic payments to the property investment
and liquidity system 204. The periodic payments may be based on any
period, but may be, more commonly, at 30 day periods. As discussed
herein, the property investment and liquidity system 204 may
provide returns to the investors on a daily basis in spite of the
periodic nature of the payments from the property owner 202.
[0137] FIG. 22 depicts a spreadsheet for a calculation of a loan
setup as an example. In this example, the target net loan amount of
$10,000. The total amount of the loan is calculated to be
$10,530.59 with a retention payment of $530.60 for net loan amount
of $9999.99 (that would go to the borrower). The duration of the
loan is determined to be one year (e.g., 365 days). Amortization of
the loan is calculated for two years with an annual interest rate
of 5% in a daily rate of 0.014% for each day of 365 days. As a
result, the payment per day (e.g., return for one share of the
loan) is calculated to be 15.16 cents. In upfront escrow for the
buffer would be 35 payments.
[0138] The property investment and liquidity system 108 calculates
the full value of the loan (e.g., desired amount by the borrow and
the retention payment) using:
PV = FV 1 ( 1 - ( r 1 - ( 1 + r ) - n ) * t ) ##EQU00001##
Where "PV" is the loan amount, "FV1" is the amount the borrower
needs, "r" is the interest rate, "t" is the number of days (e.g.,
ranging 30-35 days for the retention payment), an "n" may be a term
of amortization measured in days.
[0139] FIG. 23 depicts a spreadsheet for payments over the life of
the loan in an example. The loan in FIG. 22 is the same as the loan
in FIG. 21. FIG. 22 shows 14 escrow periods starting from period
zero and ending in period 13. The initial escrow is $530.60. The
borrower makes payments to the property investment and liquidity
system 108 in periods 1 through 13.
[0140] In the period 0 until period 1, the property investment and
liquidity system 108 pays daily returns to the investors from the
initial escrow funded by the retention payment. The first payment
is received by the borrower on period 1 (e.g., thirty days). In
this example, the borrower makes a payment of $453.08 but also
makes an additional payment of $575.52. The property investment and
liquidity system 108 puts all or some of the payment of $453.08 in
trust/escrow which is then used to fund daily returns to the
investors. The additional payment may be distributed to the
investors as a one-time lump sum. The property investment and
liquidity system 108 may recalculate payments and/or daily return
payments based on the early payment. In some embodiments, early
payment does not shorten the duration of the loan, but rather may
reduce the monthly payment of the borrower, reduce any balloon
payment at the end of the loan, and/or change the daily returns to
the investors (e.g., since they already received their portion of
the lump sum payment).
[0141] Similar to period 1, in period 2 (e.g., day 60), the
borrower pays $428.13 and makes an additional prepayment of
$556.70. The property investment and liquidity system 108 puts all
or some of the payment of $428.13 in trust/escrow which is then
used to fund daily returns to the investors. The additional payment
may be distributed to the investors as a one-time lump sum. The
property investment and liquidity system 108 may recalculate
payments and/or daily return payments based on the early
payment.
[0142] For periods 3-12, the borrower continues to make payments on
time and in the last period (period 13), the borrower makes a final
payment as well as a balloon payment to the property investment and
liquidity system 108. The funds are distributed to the investors
and the loan may be satisfied. In various embodiments, the property
investment and liquidity system 108 may provide a certificate or
other documentation to confirm that the loan is satisfied, may
contact financial institutions and credit rating agencies regarding
the satisfaction of the loan, may confirm the end of the loan with
investors, and may make notices of satisfaction of the loan on
titles or other real estate services.
[0143] Returning to FIG. 6, daily returns continue to be paid from
the periodic payments of the property owner 202.
[0144] In step 612, the borrower may make an advance prepayment
(e.g., in addition to the periodic payment). The recalculation
module 318 may recalculate the amount of periodic payments moving
forward for the borrower as well as the amount of daily returns to
the investors. The returns module 316 may distribute all or parts
of the prepayment to each of the investors based on the percentage
of investment of the loan that that particular investor makes.
[0145] In steps 614-618, the returns module 316 provides updated
daily returns to the first investor 206, the second investor 208,
and the third investor 210, respectively.
[0146] In step 620, the third investor 210 determines to sell their
portion of the investment in the existing loan to second investor
208. It may be appreciated that an investor may sell all or part of
their investment to another investor that is already investing in
the same loan or to a different investor that has not previously
funded a part of the particular loan.
[0147] In some embodiments, the third investor 210 may choose to
list their investment in the particular loan using an exchange or
through publication of the publication module 308. In this example,
the second investor may have been looking for an opportunity to
make additional investments into the loan for this particular
property and, in searching publications from the publication module
308 using a search query, the second investor 208 may discover the
investment opportunity from third investor 210, and make the
purchase.
[0148] The property investment and liquidity system 108 is still
the center of the system and, as a result, can match the two
investors together and further control investments calculations and
returns while preventing unknown or untrusted other parties that
can be a problem with decentralized systems.
[0149] In another example, the second investor 208 may desire to
increase their investment in a particular property. In this
example, the second investor 208 may publish an offer to purchase
all or part of the investment of another investor in the property.
Alternately, the second investor 208 may reach out to the third
investor 210 to discuss acquiring all or part of the third
investor's position in the loan.
[0150] In one example, a property owner may seek a loan secured by
their residential property. The property owner may reach out to the
property investment and liquidity system 108 to seek a loan. The
property investment and liquidity system 108 may come to an
agreement of terms regarding the loan and then publish the loan for
individual, and remote investors to select the loan opportunity for
investing. Once there is sufficient investment committed to service
the loan, an operator (i.e., an entity) of the property investment
and liquidity system 108 may enter into an agreement with the
property owner. The property investment and liquidity system 108
and/or the operator may register the loan with the county
registrar. In this example, the entity that operates or works with
the property investment and liquidity system 108 is the registered
entity that holds the property lien. The property investment and
liquidity system 108 may facilitate funds from the investors to
fund the loan and provide the loan to the property owner.
Subsequently, the property investment and liquidity system 108
facilitates daily returns to the investors.
[0151] In various embodiments, the investor with the largest stake
in the loan may have additional rights under the agreement(s)
through the property investment and liquidity system 108. In one
example, if there is a default on the loan and the property becomes
available in satisfaction of the loan (i.e., a foreclosure), the
investor with the largest stake (e.g., the largest invested amount
in the loan) may receive or have the opportunity to purchase the
property. This may incentivize an investor to increase their
investment in order to be in a position to receive a desirable
property and/or control negotiation. In this example, the second
investor 208 may become the largest investor once the investment
from the third investor 210 is purchased.
[0152] In one example of a foreclosure, an entity associated with
or operating the property investment and liquidity system 108 may
come to an agreement of terms regarding the loan and then publish
the loan for individual, and remote investors to select the loan
opportunity for investing. Once there is sufficient investment
committed to service the loan, an operator (i.e., an entity) of the
property investment and liquidity system 108 may enter into an
agreement with the property owner. The property investment and
liquidity system 108 and/or the operator may register the loan with
the county registrar. In this example, the entity that operates or
works with the property investment and liquidity system 108 is the
registered entity that holds the property lien. If there is a
default, the entity may negotiate to work out an arrangement
between the property owner and the investors.
[0153] Additionally or alternatively, the investors may negotiate
with the property owner. Traditionally, a bank that may foreclose
on a loan may be restricted to communicate with the debtor by
registered mail. In this example, the property investment and
liquidity system 108 may create a secured chat or other digital
communication. The property investment and liquidity system 108 may
require the property owner and each investor to log into the system
and/or provide credentials to confirm their identity. The property
investment and liquidity system 108 may log all information of the
secured chat and/or other digital communication including
communications. The property investment and liquidity system 108
may also encrypt and/or create checksums of the conversation to
confirm that the chat and/or other digital communication cannot be
later altered. The logged and secured communication can then
provide a foundation for security and confirmation of agreement
between the parties.
[0154] The property investment and liquidity system 108 may change
the terms of the loan, payouts, and/or the like based on the
agreement (if any) between the parties. In some embodiments, if the
property enters into foreclosure, the entity operating or
associated with the property investment and liquidity system 108
may foreclose the property and become the owner of the property.
The entity may then work with the investor with the largest
investment position to either transfer ownership of the property or
come to another resolution. The investor with the largest
investment position may be incentivized to purchase the investment
positions of the other investors so that they can own the property
free and clear of other encumbrances.
[0155] In this way, it may be appreciated that the entity can
contractually control the negotiation and ultimate resolution of a
default through agreements with the property owner and
investors.
[0156] Investors who do not have the largest investment within a
property may still, in some cases, receive a return if the property
is forfeit. For example, the investor that receives the property
may provide some satisfaction of past investments with other
investors based on the value of the property, insurance, and/or the
like.
[0157] In step 622, the second investor 208 makes a purchase of the
third investor's investment. Certificates of the investment,
documents documenting the investment, tracking of their investment
may be performed by the property investment and liquidity system
204 which may provide a complete picture of the loans, loan
performance, investor positions, financials, and/or the like. Money
from the second investor 2084 the investment of the third investor
210 may be provided to the property investment and liquidity system
204 which may then relay those funds to the third investor 210. The
investment module 312 may update rules and tracking to ensure that
updated daily returns in steps 624 and 626 are provided to the
first investor 206 and the second investor 208, respectively.
[0158] FIG. 7 is a method for a property owner to create a loan
opportunity. In step 702, the property investment and liquidity
system 108 receives a registration request from the property owner.
The property investment and liquidity system 108 may authenticate
the identity of the property owner by receiving personal
information, financial information (e.g., banking information), and
confirming/authenticating the information against public, private,
or government databases (e.g., with one or more financial
institutions where the property owner banks).
[0159] In step 704, the property owner may provide the property
investment and liquidity system 108 information regarding the
property that will be collateral for the loan (e.g., address,
features, value of the home, proof of ownership), amount the
property owner seeks as a loan, and duration of the loan.
[0160] In step 706, the property owner may provide the property
investment and liquidity system 108 information regarding the loan
(e.g., financial information) that they desire including, for
example, desired amount, desired rate, duration, and the like.
[0161] In step 708, the property investment and liquidity system
108 may evaluate value of the property based on the property
information, purchase price, any debts or encumbrances against the
property, ownership interest (e.g., amount of ownership), other
claims (e.g., judgments, life estates, or the like), purchase
history, the economy, prices of similar homes, the market for
homes, and/or the like. Such information may be collected from any
number of databases (e.g., newspapers, assessor's offices, real
estate websites, title offices, and/or the like).
[0162] In step 710, the property investment and liquidity system
108 may determine risk and opportunity of loan as well as retention
payment. For example, the property investment and liquidity system
108 may determine a loan amount that meets the borrower's needs and
covers a retention payment (e.g., a fee for the service and/or a
first month's interest payments to investors). The retention
payment may include an upfront payment to cover a range of thirty
to thirty five days of daily payments.
[0163] In step 712, the property investment and liquidity system
108 may retrieve one or more loan agreement templates from the
documents module 322 and populate fields with property information,
financial information, borrower information, and/or other terms and
conditions. The property investment and liquidity system 108 may
provide the agreements to the property owner for their review,
negotiation, and/or signing.
[0164] In step 714, after the signed documents are received (e.g.,
the signed documents may be digitally signed), the property
investment and liquidity system 108 may publish the loan
opportunity with other loan opportunities to potential
investors.
[0165] FIG. 8 depicts a method for an investor to find,
investigate, and commit to one or more loan opportunities in some
embodiments. In step 802, the investor may log into an account on
the property investment and liquidity system 108 and search for
loan opportunities. It may be appreciated that the investor may
search for loan opportunities based on address, amount of
investment available for the opportunity, rate, and/or the like. In
one example, the investor may utilize a dynamic graphical user
interface such as that depicted in FIG. 10 to research
opportunities.
[0166] FIG. 10 is a dynamic graphical user interface (GUI) 1000 for
an investor on an investor's digital device. The GUI 1000 may be
depicted in an application on an investor's digital device (e.g.,
such as a smartphone). All or some of the information depicted in
the GUI 1000 may be provided by the property investment and
liquidity system 108.
[0167] Based on a query, an investor may view one or more
properties and/or loan opportunities in a single interface when
multiple interfaces. The information that populates interface may
be provided by the publication module 308 of the property
investment and liquidity system 108
[0168] In the example of FIG. 10, the investor may view multiple
properties including, for example, opportunity 1002 and opportunity
1004. In opportunity 1002, the graphical user interface indicates
the address of the property that is collateral for the loan, and
amount of loan requested as well as an amount of loan still
available for investment, the yield, duration, LTV, and style of
house. Similarly, in opportunity 1004, the graphical user interface
provides similar information for different property and different
loan opportunity.
[0169] It may be appreciated that an investor may review any number
of opportunities and properties using any combination of criteria.
In some embodiments, the investor may identify preferred properties
by indicating or flagging them as favorites or preferred
opportunities so that they can be reviewed later.
[0170] In step 804, the investor may select a property from the
interface to do further research on the investment opportunity.
Further research on the investment opportunity may include, but is
not limited to, an investment calculator, capital stack, historical
value, and equity cushion.
[0171] In one example, the investor may utilize a dynamic graphical
user interface such as that depicted in FIG. 11 to research
properties and particular loan opportunities.
[0172] FIG. 11 is an investor dynamic graphical user interface
(GUI) 1100 for an investor on an investor's digital device. All or
some of the information depicted in the GUI 1100 may be provided by
the property investment and liquidity system 108. The investor
dynamic GUI 1100 may include three tabs including, for example, an
investment tab, a property (e.g., home) tab, and a borrower
tab.
[0173] The investment calculator depicted in GUI 1100 may enable an
investor to select different investment amounts and calculated
total return, a monthly return, annual interest rate. The
investment calculator may further include a duration of the loan,
an optional loan purpose (e.g., to fix or flip the property), and
the like.
[0174] In various embodiments, an investor may slide and indicator
along a predefined graphical object such as a line to input
different amounts of potential investment. In GUI 1100, an investor
may utilize the slide to indicate a potential investment of $1200.
As the slide position along the graphical object changes, the
potential amount investment may change, and calculations may change
in the GUI 1100. For investment of $1200, the investment calculator
may show a $257.28 total return and $21.44 monthly return.
[0175] The capital stack portion of the GUI 1100 indicates an
amount of equity in the property and an amount of debt in the
property. In some embodiments, the GUI 1100 indicates an amount of
debt in the property assuming the current loan is fully invested
(e.g., one or more investors fund the full amount of the proposed
loan). The capital stack may indicate the amount of equity in the
property, the proposed loan in the property assuming it is fully
invested, and or any other loans on the property.
[0176] The historical value portion of the GUI 1100 indicates a
current property value as well as a historical value of the
property. In some embodiments, the loan facilitation module 314
calculates an estimated value of the property in the future based
on property trends, similar properties in the area, and/or the
like.
[0177] The equity cushion portion of the GUI 1100 indicates an
amount of equity in the property and may, optionally, provide a
simulation or simulation results of a potential recession. In the
example, GUI 1100 displays results of the 2008 recession to
indicate what the equity cushion may look like over time. The graph
is provided in GUI 1100 to indicate an amount of equity cushion
over time or lack thereof. There also may be an indication of the
last recession, in this example the recession of 2008, and indicate
values of similar properties in similar areas during that time.
[0178] In step 806, the investor may opt do further research on the
property related to the investment opportunity. Further research on
the property related to the investment opportunity may include, but
is not limited to, property statistics, links to documents related
to the property, a map, graphs of appreciation in value of similar
properties, and/or job prospects in the area.
[0179] In one example, the investor may utilize a dynamic graphical
user interface such as that depicted in FIG. 12 to research
properties.
[0180] FIG. 12 is an investor dynamic graphical user interface
(GUI) 1200 for an investor to research a property on an investor's
digital device. All or some of the information depicted in the GUI
1200 may be provided by the property investment and liquidity
system 108. The investor dynamic GUI 1200 may be a property
tab.
[0181] The property statistics portion of the GUI 1200 depicts a
value of the property, a price per square foot of the property, lot
size, school total square foot of the property, and attributes of
the property (e.g., number of beds and number of bathrooms). It may
be appreciated that any amount of information regarding attributes
of the property, its value, aspects of the property that contribute
to the value, and/or the like may be depicted.
[0182] The documents portion of the GUI 1200 may include links to
various documents including appraisals, project overview, the
statement of work for past work, property profiles, representations
of the property owner, details of title search, documents related
to other debts related to the property, and/or the like. In some
embodiments, investor may tap or interact with the document link to
retrieve the document from the property investment and liquidity
system 108. The investor's digital device may depict the document
to enable the investor to review and read the document. Once the
document has been reviewed to the investor satisfaction, the
investor may close the document, and, in some embodiments, return
to the GUI 1200.
[0183] The map may show a location of the property and the
surrounding areas. In the example of GUI 1200, a map of San
Francisco and ZIP Code is included. In some embodiments, the mat
may be linked to other maps in applications or on websites. An
investor may interact with the map in GUI 1200 to navigate to a map
and an application or website for further view.
[0184] The portion of graphs of appreciation in value of similar
properties of the GUI 1200 may indicate an average value index for
the US, average value index for region, and/or the like. In GUI
1200, an example of average housing appreciation is shown in the US
generally and in the region of the location of the property in
question. This portion further may show, for similar properties in
the US and or the region, a median age of the property, and median
price of the property, appreciation over predefined durations
(e.g., 12 months, five years, 10 years), property tax rate, homes
owned, vacancy rate, homes rented, and/or the like.
[0185] The jobs portion of the GUI 1200 may indicate jobs and
income levels for the region where the property is located, a city
where the property is located, county where the property is
located, the state where the property is located, and/or the United
States. A graph may be depicted indicating a change in jobs and
salaries over time for different geographical areas. In some
embodiments, the jobs portion includes income per capita, a
household income, unemployment, and job growth to enable the
investor to consider other aspects that may influence the value of
the property.
[0186] In step 808, the investor may opt to do further research
regarding the borrower of the investment opportunity. The borrower
may provide all or part of their information. In one example, the
investor may review the borrower's income, income type, assets,
credit score, education, existing debt, related documents of the
financial health of the borrower and or the like.
[0187] FIG. 13 is an investor dynamic graphical user interface
(GUI) 1300 for an investor to research a potential borrower on an
investor's digital device. All or some of the information depicted
in the GUI 1300 may be provided by the property investment and
liquidity system 108. The investor dynamic GUI 1300 may be a
borrower tab. The GUI 1300 may include a borrower portion and a
documents portion.
[0188] The borrower portion of the GUI 1300 may depict various
information about the borrower and the borrower's financial health.
An example of GUI 1300, information presented includes age, income,
income type, assets, credit scores, and debt. In some embodiments
education and marital status may also be shown. It will be
appreciated that similar, more, or less information may be provided
to the potential investor. In various embodiments, the borrower may
choose how much information of themselves they wish to share with
potential investors.
[0189] The documents portion of the GUI 1300 may include links to
credit reports, pay stubs, bank statements, and/or the like. There
may be any number of links to any number of documents that may
assist the potential investor in reviewing the risks and rewards of
the opportunities.
[0190] In step 810, the investor may choose to invest in a loan
opportunity. In one example, at the bottom of the GUI 1100, GUI
1200, and GUI 1300, there may be an interactive button or link to
enable an investor to pursue a loan opportunity (e.g., a graphical
object with the word invest displayed).
[0191] In some embodiments, once the investor chooses to
potentially invest in a loan opportunity, the graphical user
interface may depict investor information requesting whether the
investor is an accredited investor. In some embodiments, the
question to the investor as to whether they are an accredited
investor is a requirement. In one example, an interface may be
presented asking whether the investor falls under different
categories of being an accredited investor according to the
Security and Exchange Commission (SEC). In one example, the
investor may select a category indicating that the investor earns
"more than $200,000 per year" or "earns more than $300,000 per year
with a spouse." The investor may also be required to select a
category indicating that their income has "been consistent for the
past two years and I can reasonably expect the same level of income
going forward." Alternately, the investor may select a different
category indicating that they have "a net worth exceeding $1
million either individually or jointly, excluding the value of [the
investor's] primary residence."
[0192] FIG. 14 is an investor dynamic graphical interface (GUI)
1400 requesting information regarding whether the investor is an
accredited investor.
[0193] The investor's representations as to whether they are an
accredited investor may be saved and stored by the property
investment and liquidity system 108 as the property investment and
liquidity system 108 creates records for the potential investment.
These records may be audited or reviewed by the SEC or other
parties with legal rights to access that information.
[0194] If the investor is not an accredited investor and/or
indicates that they are not an accredited investor, the property
investment and liquidity system 108 may indicate that the investor
is not allowed to make investments using the system.
[0195] If the investor represents that they are an accredited
investor, the process may continue to step 812. In step 812,
investor may choose their stake size to invest in the loan
opportunity.
[0196] FIG. 15 is an investor dynamic graphical interface (GUI)
1500 that may be depicted in the application of the investor that
enables the investor to determine an amount of investment in the
loan opportunity. There may be a slider that may be moved along a
graphical object to enables the investor to change an amount to
invest. Alternatively, there may be a field to enter an investment
amount.
[0197] In some embodiments, the GUI 1500 may include an interactive
graphic that indicates how much of the loan opportunity is invested
or uninvested. For example, a property graphic may be depicted that
fills with color or has another indication. Any unfilled portion of
the property graphic may indicate a relative amount of the loan
opportunity that remains uninvested.
[0198] The GUI 1500 may also include similar calculations based on
a selected amount of investment including, for example, an
approximate total return, approximate monthly return, and
approximate daily return. The GUI 1500 may have other information
regarding the loan opportunity including, for example, annual
interest rate (e.g., APR), and duration.
[0199] FIG. 9 is a flow chart for a method for investing in some
embodiments. After an investor determines to make an investment,
the property investment and liquidity system 108 may create one or
more legal documents to create or support the financial instrument.
In various embodiments, the property investment and liquidity
system 108 may have a variety of document templates that may be
modified based on the loan information, property information,
amount of investment, and the like. The property investment and
liquidity system 108 may create the documents and populate the
necessary information for review and signature by the investor.
[0200] Optionally, the property investment and liquidity system 108
may present to the investor in opportunity to add principal
protection insurance. In one example, principal protection
insurance may enable an investor to ensure against the possibility
of the loan defaults (e.g., that they will receive their full
principal back as well as an opportunity to sell their investment
back to the property investment and liquidity system 108 at any
time). The investor may provide a principal protection fee in
exchange for the service. In one example, the principal protection
fee may be 1% of the total loan amount or the investor's portion of
their particular investment.
[0201] In some embodiments, a GUI is presented through the
investor's smartphone to request whether they would like principal
protection insurance. The GUI may depict a total investment
selected by the investor, an annual interest rate, a daily return,
an approximate total return, an approximate monthly return,
duration of the investment, as well as other information regarding
the value of principal protection insurance.
[0202] Once an investor chooses to invest in a loan opportunity,
the property investment and liquidity system 108 may calculate
interest at a particular time daily (e.g., midnight Pacific
Standard Time daily). A daily interest may be provided to the
investor (assuming the full loan has been invested) following a 24
hour period. For example, if the investor made an investment at 3
PM on Tuesday, they may start receiving interest at 12 AM on
Thursday. Interest may be calculated based on the investment amount
of the investor at midnight medically amount still in the
processing period.
[0203] In step 902, the investor may make a selection to receive a
loan investment agreement. The loan investment agreement may be
created by the property investment and liquidity system 108 from a
template and populating relevant information regarding the loan
opportunity and investment information related to the investor's
chosen investment.
[0204] The loan investment agreement may indicate the address,
borrower, investor, amount to be invested, rate, duration of loan,
address of property, agreement regarding retention payment
(discussed herein), and/or the like. In some embodiments, the loan
investment agreement may include a representation of the investor
that they are an accredited investor.
[0205] In step 904, the investor may choose to sign the loan
investment agreement. In various embodiments, the application on
the investor's digital device requires the investor to review the
entire document and/or may wait a period of time to encourage the
investor to carefully review the document. In some embodiments, the
application on the investor's digital device may not allow the
investor to sign the document until the entire document has been
viewed and/or a period of time has passed for the investor to
review.
[0206] The application on the investor's digital device may enable
the investor to sign the document directly through the interface
(e.g., using their finger). In some embodiments, the application on
the investor's digital device utilizes digital signatures such as
Docusign and/or credentials (e.g., encryption keys and the like)
that may be authorized by the property investment and liquidity
system 108 and/or a trusted third-party.
[0207] FIG. 16 depicts an example final confirmation of a loan
investment agreement in some embodiments. After the investor has
reviewed the loan investment agreement, the GUI 1600 may depict a
final confirmation, including a total amount of investment, a
confirmation that they investor wishes to invest the amount of the
investment, the APR, and the duration of the investment.
[0208] In some embodiments, the investor can sell the investment
before the full duration of the investment (e.g., at any time or at
one or more specific times).
[0209] It will be appreciated that the investment may be active
once the loan is funded. After the loan is funded, the investor may
start to receive a return (e.g., interest) at midnight after a full
24 hour ownership period.
[0210] In step 906, the investor may be requested to complete an
investor profile. It may be appreciated that the investor may be
requested to complete the investor profile at any time including,
for example, before looking for investment opportunities, before
committing to an investment, after committing to an investment,
and/or the like.
[0211] In some embodiments, the investor profile may require the
investor to indicate a country they are investing from, income over
one or more years (e.g., 2017 income, 2018 income, expected 2019
income, and the like), and net worth. The investor profile may
require the investor to provide their residence address as well as
state of residence, and contact information.
[0212] In step 908, the property investment and liquidity system
108 or application on the investor's digital device may require the
investor to provide a photograph of their passport, driver's
license, or other identification information. In some embodiments,
the property investment and liquidity system 108 may utilize
government and/or financial databases to confirm identification
information. For example, if an investor provides passport
information including for example, a picture of their passport
information, the property investment and liquidity system 108 may
confirm or authenticate the name in the passport, date of birth,
place of birth, date of issue, date of expiration, picture, and/or
the like.
[0213] In step 910, the property investment and liquidity system
108 may authenticate the identification information by confirming
the information provided by the investor against information from
government, private, and public databases (e.g., terrorist and
criminal databases). If one or more elements of the investor's
identification information fail to be confirmed as authentic, the
property investment and liquidity system 108 may require additional
information or deny the investor the investment opportunity.
[0214] In step 912, the property investment and liquidity system
108 may optionally provide the investor a graphic of a certificate
and/or a digitally signed certificate regarding their
investment.
[0215] In various embodiments, the property investment and
liquidity system 108 may store information from the investor
including photographs of identification information, personal
information provided by the investor, and signed documents in order
to create a record of the loan opportunity and the investor's
investment. This information may be required in audits and in
tracking the investors' investments.
[0216] FIG. 17 is a flowchart for an investor to sell their
investment to another investor in some embodiments. In step 1702,
the investor may utilize their application on their digital device
to view their currently invested investment opportunities. The
application on their digital device may include a graphical user
interface indicating their investments, total return, monthly
return, and/or the like.
[0217] FIG. 18 is a dynamic graphical user interface (GUI) 1800 for
an investor that enables the investor to buy the investments of the
particular loan opportunity of other investors or sell all or part
of their investments of the particular loan opportunity. The GUI
1800 provides an opportunity for the investor to seek to invest
more in the particular loan opportunity (e.g., by seeking to buy
all or part of loan investments for the particular loan opportunity
from other investors) or to seek sell all or part of their
investment to other investors.
[0218] In step 1704, the investor may indicate how much of their
investment they would like to sell to another investor.
[0219] FIG. 19 is a dynamic graphical user interface (GUI) 1900 for
an investor that enables the investor to sell all or part of their
investments. The GUI 1900 may indicate the investor's total
investment in the loan opportunity, and enable selection of an
amount of the investment opportunity they wish to sell. In one
example, there may be a slider that can be moved along a graphical
object that enables the investor to choose the amount of their
investment they wish to sell. Alternately or additionally, there
may be an opportunity for the investor to manually input a number
indicating the amount of the investment they wish to sell. The GUI
1900 may dynamically calculate how much of the investment remains
(if any), total return, and monthly return.
[0220] In step 1606, the investor may have the opportunity to
review the results of their selling decisions. The property
investment and liquidity system 108 may create a final confirmation
document for the investor's review to enable the investor to be
informed of their decision. The final confirmation document may be
a template populated by information from the investor (e.g., from
information provided to the GUI 1800).
[0221] FIG. 20 is a dynamic graphical user interface (GUI) 2000 to
confirm the investor's intention to sell their investment. In GUI
2000, an amount of the investment to be sold is depicted as well as
the address of the property and the rate. During 2000 further
allows the investor to sign the document using a finger or other
digital means.
[0222] Although various figures depict digital signing of
documents, will be appreciated that it one or more documents may be
printed, physically signed, and provided back to the property
investment and liquidity system 108.
[0223] In step 1608, the investor may sign the confirmation
document. After a predetermined processing period, the amount of
investment that the investor wishes to sale may be put up for sale
to other investors.
[0224] The property investment and liquidity system 108 may provide
an interface that enables investors to search for investments in
existing, funded loan opportunities for additional investment and
greater returns. The property investment and liquidity system 108
may provide query fields to enable different investors to search
for existing, funded loan opportunities using loan information,
addresses, names of investors, names of borrowers, and/or the
like.
[0225] FIG. 21 is a method for determining daily payments in some
embodiments. In various embodiments, the property investment and
liquidity system 108 will calculate the daily payments once: (1) a
loan opportunity is fully funded by any number of investors, (2)
when an investor sells all or part of the investment, and (3) when
the borrower (e.g., property owner) prepays a portion of their loan
early.
[0226] In step 2102, the property investment and liquidity system
108 determines daily payments. In various embodiments, the property
investment and liquidity system 108 creates a loan payment and
amortization schedule (calculated daily) for the investors. The
borrower may pay their loan every thirty days and because each
day's payments are generally the same as the previous days, the
borrower sees smooth payments every thirty days while the investors
receive a smooth stream of daily payments. The daily payment
calculation may be made at the time the loan opportunity is funded
and/or at any time.
[0227] In step 2104, the property investment and liquidity system
108 receives a retention payment from the funds transferred from
the investors. In step 2106, all or part of the retention payment
may be placed in trust or escrow. The retention payment that is
placed in trust or escrow may be used to pay the daily returns to
the investors, at least until the first loan payment is received
from the borrower.
[0228] In step 2106, the property investment and liquidity system
108 provides the remaining funds from the investors to the borrower
(e.g., property owner).
[0229] In step 2108, the property investment and liquidity system
108 may pay daily return payments to the investors from the
retention payment that was placed in trust or escrow. As a result,
the investors receive daily interest payments a month (or so)
before the borrower provides their first payment. As the amount in
trust or escrow is drawn down, then a new payment is received from
the borrower.
[0230] In step 2110, the property investment and liquidity system
108 receives a monthly payment from the borrower. In step 2112, the
property investment and liquidity system 108 places the monthly
payment in trust or escrow.
[0231] In step 2114, the property investment and liquidity system
108 makes daily return payments to the investors and the amount in
trust or escrow is drawn down until the next payment.
[0232] In some embodiments, principal payments may be split and
paid out to the nearest penny rounded down to the investors based
on the amount of their investment. In various embodiments, payments
are split amongst the investors based on the percent of their
investment and paid to the nearest penny rounded down. In various
embodiments, any fractional amounts left are then allocated to the
respective share owners. Once an investor builds up fractional
amounts to a whole penny, then the penny may be paid out.
[0233] In various embodiments, interest payments may be split and
paid out to the nearest penny rounded down to the investors based
on the amount of their investment. In various embodiments, any
fractional amounts left are then allocated to the respective share
owners. Once an investor builds up fractional amounts to a whole
penny, then the penny may be paid out. In some embodiments,
fractional amounts of interest left are collected by the owner or
operator of the property investment and liquidity system 108 as a
part of the payment for the services.
[0234] In step 2112, the property investment and liquidity system
108 tracks the daily obligation for the borrower and tracks
payments to investors.
[0235] In step 2114, the property investment and liquidity system
108 receives a prepayment from the borrower. The prepayment is more
than what is immediately due for the loan obligations. The property
investment and liquidity system 108 may divide all or part of the
prepayment to the investors, based on the percentage of
investment.
[0236] In step 2116, the property investment and liquidity system
108 may recalculate daily returns for the investors after the
prepayment is received from the borrower. Once the prepayment is
divided amongst the inventors, the daily returns and/or monthly
amounts due from the borrower may change. The loan duration and
rate may be maintained and, as a result, the amount of the monthly
payment from the borrower and daily return may decrease.
[0237] In one example, if the current loan balance is $1000 and has
$10 of principal accrued with $8 of interest accrued, and the
borrower pays an unscheduled payment of $20, the $20 will be used
to settle the $10 and $8 accrued with the remaining two dollars
used to pay down the loan balance. The resulting loan balance at
the end of the day will be, in this example, $998.
[0238] In step 2118, the property investment and liquidity system
108 pays out the new daily returns to the investors.
[0239] In step 2120, the property investment and liquidity system
108 pays the final payment to the investors. In some embodiments, a
final payment on the loan may be split like regular principal.
Further, the owner or operator of the property investment and
liquidity system 108 may ensure that all pennies are paid out/made
whole so that the original principal lent equals the total
principal paid back.
[0240] While FIGS. 10 through 18 depict various example graphical
user interfaces, it may be appreciated that any graphical user
interface may provide information to the investor and enable the
investor to make research investment choices. Another graphical
user interface may be utilized which may include similar,
different, or rearranged information. Similarly, the layout of the
information may be different in different GUIs, and functionality
(e.g., tabs, buttons, sliders, input fields and/or the like) may be
different in different GUIs.
[0241] Further, information provided to investors, as depicted in
FIGS. 10 through 18, may be calculated and provided by the property
investment and liquidity system 108, on an investor smartphone
(e.g., through an application on the investor's digital device), or
a combination of both.
[0242] FIG. 24 depicts a block diagram of an example digital device
2400 according to some embodiments. Digital device 2400 is shown in
the form of a general-purpose computing device. Digital device 2400
includes processor 2402, RAM 2404, communication interface 2406,
input/output device 2408, storage 2410, and a system bus 2412 that
couples various system components including storage 2410 to
processor 2402.
[0243] System bus 2412 represents one or more of any of several
types of bus structures, including a memory bus or memory
controller, a peripheral bus, an accelerated graphics port, and a
processor or local bus using any of a variety of bus architectures.
By way of example, and not limitation, such architectures include
Industry Standard Architecture (ISA) bus, Micro Channel
Architecture (MCA) bus, Enhanced ISA (EISA) bus, Video Electronics
Standards Association (VESA) local bus, and Peripheral Component
Interconnect (PCI) bus.
[0244] Digital device 2400 typically includes a variety of computer
system readable media. Such media may be any available media that
is accessible by the digital device 2400 and it includes both
volatile and nonvolatile media, removable and non-removable
media.
[0245] In some embodiments, processor 2402 is configured to execute
executable instructions (e.g., programs). In some embodiments, the
processor 2402 comprises circuitry or any processor capable of
processing the executable instructions.
[0246] In some embodiments, RAM 2404 stores data. In various
embodiments, working data is stored within RAM 2404. The data
within RAM 2404 may be cleared or ultimately transferred to storage
2410.
[0247] In some embodiments, communication interface 2406 is coupled
to a network via communication interface 2406. Such communication
can occur via Input/Output (I/O) device 2408. Still yet, the
digital device 2400 may communicate with one or more networks such
as a local area network (LAN), a general wide area network (WAN),
and/or a public network (e.g., the Internet).
[0248] In some embodiments, input/output device 2408 is any device
that inputs data (e.g., mouse, keyboard, stylus) or outputs data
(e.g., speaker, display, virtual reality headset).
[0249] In some embodiments, storage 2410 can include computer
system readable media in the form of volatile memory, such as
read-only memory (ROM) and/or cache memory. Storage 2410 may
further include other removable/non-removable,
volatile/non-volatile computer system storage media. By way of
example only, storage 2410 can be provided for reading from and
writing to a non-removable, non-volatile magnetic media (not shown
and typically called a "hard drive"). Although not shown, the
digital device 2400 may include a magnetic disk drive for reading
from and writing to a removable, non-volatile magnetic disk (e.g.,
a "floppy disk"), and/or an optical disk drive for reading from or
writing to a removable, non-volatile optical disk such as a CDROM,
DVD-ROM or other optical media. In such instances, each can be
connected to system bus 2412 by one or more data media interfaces.
As will be further depicted and described below, storage 2410 may
include at least one program product having a set (e.g., at least
one) of program modules that are configured to carry out the
functions of embodiments. In some embodiments, RAM 2404 is found
within storage 2410.
[0250] Program/utility, having a set (at least one) of program
modules may be stored in storage 2410 by way of example, and not
limitation, as well as an operating system, one or more application
programs, other program modules, and program data. Each of the
operating system, one or more application programs, other program
modules, and program data or some combination thereof, may include
an implementation of a networking environment. Program modules
generally carry out the functions and/or methodologies of
embodiments as described herein. A module may be hardware (e.g.,
ASIC, circuitry, and/or the like), software, or a combination of
both.
[0251] It should be understood that although not shown, other
hardware and/or software components could be used in conjunction
with the digital device 2400. Examples include, but are not limited
to: microcode, device drivers, redundant processing units, and
external disk drive arrays, RAID systems, tape drives, and data
archival storage systems, etc.
[0252] Exemplary embodiments are described herein in detail with
reference to the accompanying drawings. However, the present
disclosure can be implemented in various manners, and thus should
not be construed to be limited to the embodiments disclosed herein.
On the contrary, those embodiments are provided for the thorough
and complete understanding of the present disclosure, and
completely conveying the scope of the present disclosure to those
skilled in the art.
[0253] As will be appreciated by one skilled in the art, aspects of
one or more embodiments may be embodied as a system, method or
computer program product. Accordingly, aspects may take the form of
an entirely hardware embodiment, an entirely software embodiment
(including firmware, resident software, micro-code, etc.), or an
embodiment combining software and hardware aspects that may all
generally be referred to herein as a "circuit," "module" or
"system." Furthermore, aspects may take the form of a computer
program product embodied in one or more computer readable medium(s)
having computer readable program code embodied thereon.
[0254] Any combination of one or more computer readable medium(s)
may be utilized. The computer readable medium may be a computer
readable signal medium or a computer readable storage medium. A
computer readable storage medium may be, for example, but not
limited to, an electronic, magnetic, optical, electromagnetic,
infrared, or semiconductor system, apparatus, or device, or any
suitable combination of the foregoing. More specific examples (a
non-exhaustive list) of the computer readable storage medium would
include the following: an electrical connection having one or more
wires, a portable computer diskette, a hard disk, a random access
memory (RAM), a read-only memory (ROM), an erasable programmable
read-only memory (EPROM or Flash memory), an optical fiber, a
portable compact disc read-only memory (CD-ROM), an optical storage
device, a magnetic storage device, or any suitable combination of
the foregoing. In the context of this document, a computer readable
storage medium may be any tangible medium that can contain, or
store a program for use by or in connection with an instruction
execution system, apparatus, or device.
[0255] A computer readable signal medium may include a propagated
data signal with computer readable program code embodied therein,
for example, in baseband/or as part of a carrier wave. Such a
propagated signal may take any of a variety of forms, including,
but not limited to, electro-magnetic, optical, or any suitable
combination thereof. A computer readable signal medium may be any
computer readable medium that is not a computer readable storage
medium and that can communicate, propagate, or transport a program
for use by or in connection with an instruction execution system,
apparatus, or device.
[0256] Program code embodied on a computer readable medium may be
transmitted using any appropriate medium, including but not limited
to wireless, wireline, optical fiber cable, RF, etc., or any
suitable combination of the foregoing.
[0257] Computer program code for carrying out operations for
aspects discussed herein may be written in any combination of one
or more programming languages, including an object oriented
programming language such as Java, Smalltalk, C++ or the like and
conventional procedural programming languages, such as the "C"
programming language or similar programming languages. The program
code may execute entirely on the user's computer, partly on the
user's computer, as a stand-alone software package, partly on the
user's computer and partly on a remote computer or entirely on the
remote computer or server. In the latter scenario, the remote
computer may be connected to the user's computer through any type
of network, including a local area network (LAN) or a wide area
network (WAN), or the connection may be made to an external
computer (for example, through the Internet using an Internet
Service Provider).
[0258] Aspects of some of the embodiments are described herein with
reference to flowchart illustrations and/or block diagrams of
methods, apparatus (systems) and computer program products
according to embodiments. It will be understood that each block of
the flowchart illustrations and/or block diagrams, and combinations
of blocks in the flowchart illustrations and/or block diagrams, can
be implemented by computer program instructions. These computer
program instructions may be provided to a processor of a general
purpose computer, special purpose computer, or other programmable
data processing apparatus to produce a machine, such that the
instructions, which execute via the processor of the computer or
other programmable data processing apparatus, creating means for
implementing the functions/acts specified in the flowchart and/or
block diagram block or blocks.
[0259] These computer program instructions may also be stored in a
non-transitory computer readable medium that can direct a computer,
other programmable data processing apparatus, or other devices to
function in a particular manner, such that the instructions stored
in the computer readable medium produce an article of manufacture
including instructions which implement the function/act specified
in the flowchart and/or block diagram block or blocks.
[0260] The computer program instructions may also be loaded onto a
computer, other programmable data processing apparatus, or other
devices to cause a series of operational steps to be performed on
the computer, other programmable apparatus or other devices to
produce a computer implemented process such that the instructions
which execute on the computer or other programmable apparatus
provide processes for implementing the functions/acts specified in
the flowchart and/or block diagram block or blocks.
[0261] As discussed herein, investors may sell all or a portion of
their investment in any number of loans (i.e., a loan investment).
A loan investment is an investment in a loan such as the property
loan discussed with regard to FIG. 2. Similarly, another investor
(or another entity) may purchase all or a portion of an investment
in any number of loans. In some embodiments, an investor of a
particular loan (an owner of a part of a loan investment) may
identify other investors of the same loan through the property
investment and liquidity system 108. For example, the property
investment and liquidity system 108 may provide a dashboard or card
shared on an interface (e.g., a web interface published on a
network) for each loan. The dashboard or card may contain
information contact information of the different investors such
that investors may communicate with each other.
[0262] In some embodiments, the property investment and liquidity
system 108 provides a transactional exchange. The transactional
exchange may be an electronic marketplace that allows individuals
to interact directly with each other to buy, sell, and valuate
(e.g., take a position on) a property loan as discussed herein. The
property loan may be, for example, based on property owned by
property owners 202. The property owner may come to an agreement
facilitated by the property investment and liquidity system 108.
The property investment and liquidity system 108 may publish the
loan opportunity to any number of investors (e.g., investors
206-210). The investors may use the property investment and
liquidity system 108 to make offers to pay all or a portion of the
loan opportunity. When there are sufficient funds to satisfy 100%
of the loan opportunity, the property investment and liquidity
system 108 may generate an agreement to enable the property owner
202 to agree with an entity operating the property investment and
liquidity system 108 for the loan. Funds from the investors may be
received by the property investment and liquidity system 108 (or a
financial institution) and the property investment and liquidity
system 108 may provide or direct funds (originally received from
the investors) to the property owner for the loan. The property
investment and liquidity system 108 may take a retention payment
from the funds provided by the investors and begin to make daily
returns to the investors. Each investor now owns a part of the loan
(i.e., they own a loan investment).
[0263] As discussed herein, the property investment and liquidity
system 108 may control or provide a transactional exchange to
enable investors to purchase all or part of an investor's position
in a loan (i.e., all or part of their investment). Further, the
property investment and liquidity system 108 may control or provide
a transactional exchange to enable investors to sell all or part of
their position in a loan (i.e., all or part of their
investment).
[0264] In some embodiments, the transaction exchange may treat the
buying and selling of investment units of a loan as being similar
to that of the buying and selling of shares of an investment (e.g.,
an asset) or buying and selling of investment units of a loan as
being similar to that of buying and selling bonds.
[0265] FIG. 25 is an environment 2500 for a property investment and
liquidity system in some embodiments. FIG. 25 includes a
transactional exchange 2502, investor systems 106A through 106N, a
property investment and liquidity system 108, and a financial
institution 110 that communicate over a communication network
112.
[0266] As discussed herein, in various embodiments, the property
investment and liquidity system 108 is a centralized system that
communicates with different property owners (e.g., home owner
systems 104A-104N) that may be located anywhere in the world. As
such, the property investment and liquidity system 108 may be a
centralized system that allows different property owners to
research, negotiate loans, enable loan documents to be created,
receive loan documents, and facilitate funding. Further, the
property investment and liquidity system 108 may operate or be a
transactional exchange 2502.
[0267] The property investment and liquidity system 108 may utilize
the same network and be a centralized system and/or server for
publishing information and enabling trades regarding loans to
interested potential investors. The interested potential investors
may communicate with the property investment and liquidity system
108 using one or more investor systems 106A-106N. The investors may
be unrelated to each other (e.g., from different, independent
third-parties) and removed from each other.
[0268] An investor may utilize an application on their device
and/or navigate to a web site (e.g., transactional exchange) with
information from the property investment and liquidity system 108.
In some embodiments, the property investment and liquidity system
108 may host a web site and/or provide information to any number of
applications on any number of investor systems.
[0269] Investors may research loan opportunities based on financial
information (e.g., loan duration, rate, expected yield), borrower
information (e.g., credit rating, financial history), property
information (e.g., type of property, location of property,
desirability of property, financial information of property (e.g.,
price of property, amount of preexisting debt secured by the
property, history of property, features of the property), and/or
any combination of the above. In one example, an investor using the
investor system 106A may search using crafted queries to search the
transactional exchange 2502.
[0270] Due to the centralization of the property investment and
liquidity system 108, the property investment and liquidity system
108 enables different investors and potential investors to research
investment opportunities, as well as buy and sell portions of
existing loans through the transactional exchange 2502.
[0271] The property investment and liquidity system 108 is
centralized among the parties of the transactional exchange 2502
including buyers and sellers of financial vehicles (e.g., positions
of a loan). Further, the entity that operates the property
investment and liquidity system 108 may also be the owner of the
loan and/or issuer of the investment units (e.g., units that are
used to buy and sell portions of a loan investment). As a result,
the property investment and liquidity system 108 may track
investments, payments, percentage ownership of the loans, returns,
and the like.
[0272] The transactional exchange 2502 may be similar to a
traditional exchange but may also have characteristics of over the
counter trading (e.g., OTC or pink slip trading). The property
investment and liquidity system 108 may operate the transactional
exchange 2502 to publish loan investment identifiers, prices for
units, loan information, and/or loan investment information.
[0273] In one example, the property investment and liquidity system
108 may enter into a loan agreement with a property owner that is
funded by investors. The entity operating the property investment
and liquidity system 108 may enter into the loan agreement and
ultimately may own the loan. Investors that fund the loan also may
enter into an agreement with the entity operating the property
investment and liquidity system 108 to obtain certain contractual
rights to the underlying loan (and possibly the property in the
case of default) in exchange for their funding. The entity that
operates the property investment and liquidity system 108 may also
be obligated per the agreement with the investors and/or the
property owner to distribute daily returns. After the agreements
are signed, the entity that operates the property investment and
liquidity system 108 may issue investment units (e.g., shares,
bonds, or the like) and publish them on the transactional exchange
2502.
[0274] A potential investor using the investor system 106A may
register with the transactional exchange 2502 to search for
investment opportunities to buy or sell. The potential investor may
search the transactional exchange 2502 for properties, loan
investment information, pricing, background, and the like to select
a loan investment for trading. The potential investor may provide a
purchase request or a sell request to the transactional exchange
2502. The transactional exchange 2502 may subsequently match the
purchase or sell request with an offer to purchase or sell as well
as manage the transaction.
[0275] If the transactional exchange 2502 successfully conducts the
trade, the transactional exchange 2502 may update the property
investment and liquidity system 108 with the change in ownership
such that the property investment and liquidity system 108 may
update investor information and ownership of the loan for records,
change in rights to the underlying property and loan, as well as
changes in providing daily returns. The transactional exchange 2502
may also update a price of investment units for the investment
opportunity based, in part, on the transaction. The update in price
of investment units may be listed or published as a part of the
information provided by the transactional exchange 2502.
[0276] FIG. 26 is an example exchange module 320 in some
embodiments. The exchange module 320 comprises an initial valuation
module 2602, an issuer module 2604, a publication module 2606, a
valuation module 2608, a transaction module 2610, a dashboard
module 2612, an interface module 2614, and a registration module
2616.
[0277] In various embodiments, the property investment and
liquidity system 108 may list investment in the loan in a manner
similar to a stock in an ETF or in a manner similar to bonds. It
may be appreciated that the transactional exchange 2502 may list
all loan investments as shares in different financial vehicles
(like and ETF) or all loan investments as bonds for different
loans.
[0278] In one example, an entity associated (e.g., operator and/or
owner) of the property investment and liquidity system 108 may
enter into an agreement with a property owner to fund the loan. The
property investment and liquidity system 108 may issue shares of
the asset (i.e., the loan investment like an exchange traded fund
(ETF)) to the inventors that have agreed to fund the loan. The
initial share price for each share (i.e., each "investment unit")
may be equal to a value of the loan funding. In one example, the
entity associated with the property investment and liquidity system
108 may enter into an agreement to fund a loan of $10,000. The
initial price for each share may be $1. A first investor may fund
$5,000 of the loan and receive 5000 shares issued by the entity
associated with the property investment and liquidity system 108. A
second investor may fund $2,000 of the loan and receive 2000
shares. In another example, the initial share price for each share
may be equal to a present day value of a dollar value of the
funding.
[0279] The property investment and liquidity system 108 may enable
or operate a transactional exchange 2502 that is a platform that
allows investors and other parties to buy and sell shares. Each
share price may be based on the initial value of the share, present
value of the share, and/or based on supply and demand (e.g., most
recent sale prices of shares for that particular loan and/or
similar loans).
[0280] In various embodiments, the property investment and
liquidity system 108 may update a share price periodically. In one
example, the property investment and liquidity system 108 may
update the share price every evening or at a particular time every
day. The value of the share may be based on previous buys or sales
of shares for that loan. The value of the share may also be
impacted by any pre-payments of the underlying loan, missed
payments, or events that affect the value of the underlying
property of the loan (e.g., damage to the property, value additions
to the property, and/or the like).
[0281] In some embodiments, the transactional exchange 2502 may
treat the buying and selling of investment units of a loan as being
similar to that of buying and selling bonds. In one example, an
entity associated (e.g., operator and/or owner) of the property
investment and liquidity system 108 may enter into an agreement
with a property owner to fund the loan. The property investment and
liquidity system 108 may issue bonds associated with the loan
(i.e., the loan investment) to the inventors that have agreed to
fund the loan. The initial price for each bond (e.g., issue price)
may be equal to a value of the loan funding. In one example, the
entity associated with the property investment and liquidity system
108 may enter into an agreement to fund a loan of $10,000. The
initial price for each bond may be $1. A first investor may fund
$5,000 of the loan and receive 5000 bonds issued by the entity
associated with the property investment and liquidity system 108. A
second investor may fund $2,000 of the loan and receive 2000 bonds.
In another example, the initial share price for each bond may be
equal to a present day value of a dollar value of the funding.
[0282] In some embodiments, the face value of each bond may be the
value of daily returns until the end of the loan. The coupon rate
may be the daily rate and the coupon date may be daily (e.g., for
daily returns), or any periodic date. The maturity date may be the
last day of the loan (when the property owner completes their pay
back of the loan).
[0283] The coupon rate may be determined based on the time to loan
maturity and credit quality of the property owner that entered into
the loan. If the property owner has a poor credit rating, the risk
of default is greater, and these bonds pay more interest. Bonds
that have a very long maturity date also may pay a higher interest
rate because the bondholder is more exposed to interest rate and
inflation risks for an extended period.
[0284] In various embodiments, the property investment and
liquidity system 108 may update an issued bond price periodically.
In one example, the property investment and liquidity system 108
may update a bond's price every evening or at a particular time
every day. The value of the bond may be based on previous buys or
sales of shares for that loan. The market prices in the
transactional exchange for bonds may be based on the bond's
particular characteristics. A bond's price changes on a daily
basis, just like that of any other publicly-traded security, where
supply and demand in any given moment determine that observed
price.
[0285] It may be appreciated that the price of a bond in the
transactional exchange may change in response to changes in
interest rates in the economy. The value of the share may also be
impacted by any pre-payments of the underlying loan, missed
payments, or events that affect the value of the underlying
property of the loan (e.g., damage to the property, value additions
to the property, and/or the like).
[0286] The yield-to-maturity (YTM) of a bond in the transactional
exchange is another way of considering a bond's price. YTM is the
total return anticipated on a bond if the bond is held until the
end of its lifetime (e.g., including all returns until the end of
the loan). Yield to maturity may be expressed as an annual
rate.
[0287] The initial valuation module 2602 may be configured to
identify an initial value of the share or bond for that particular
loan. In various embodiments, the share or bond for a particular
loan may be a dollar as discussed herein, but it may be agreed to
be any value. In some embodiments, the initial value of an
investment unit for the loan investment (i.e., the unit to buy a
share or bond associated with the loan) is set based on contractual
agreements between the entity operating the property investment and
liquidity system 108 and the property owner and/or the investors
for that particular loan.
[0288] The issuer module 2604 may be configured to issue the
investment units (e.g., shares or bonds) to the investors. Each of
the investment units may have a value on the transactional exchange
2502 which is different than the expected return of the investment
unit (e.g., daily returns until the loan expires). It will be
appreciated that some investment units for the same loan may be
different and have different rights. For example, there may be
preferred investment units or common investment units wherein the
preferred investment units may be paid first in the case of default
of the underlying loan and/or may given certain rights (or omit
certain rights) regarding ownership of the underlying property in
the case of foreclosure. Types of investment units may be issued
based on contractual agreements between the entity operating the
property investment and liquidity system 108 and the property owner
and/or the investors for that particular loan.
[0289] The publication module 2606 may be configured to publish
issued investment units, their initial value, and any other
investment information on the transactional exchange 2502. In one
example, the publication module 2606 provides information to the
transactional exchange 2502 which may list all or some of the
investment units for that particular loan. The listing may include
identifying information regarding the investment units, the current
price of the investment units, and the like. Investment information
may include links to information regarding the loan from the
property investment and liquidity system 108. Examples of
investment information may include, but are not limited to, address
of underlying property that supports the loan, identification of
the property owner, address of the property owner, identification
of current investors of the loan, contact information regarding
current investors of the loan, history of payments of the loan,
amount of the loan, the date the loan is expected to end, expected
daily returns, information regarding the underlying property
including, for example, additions which improve value or events
that reduce value of the property, and the like. The publication
module 2606 may also provide historical information regarding the
investment including, for example, price changes of investment
units over time.
[0290] In various embodiments, the publication module 2606 may
enable an investor or potential investor to provide queries to
search for properties, property types, loan information, investors,
property owners, available positions of investors wishing to buy or
sell, or the like. The investor or potential investor may also
provide a query indicating a point in the time of the loan (e.g.,
early in the loan's life or later), past payment defaults to
identify properties that are likely to go into default (e.g., to
put a new investor in a position of potentially owning the
property), or the like. The publication module 2606 may search all
listed information to provide the requested information (e.g.,
qualifying listings) to the user that provided the query.
[0291] The user/investor may select one or more listings or
received information to retrieve more information and to make
purchase requests for investment units or sell requests for
investment units.
[0292] The valuation module 2608 may be configured to update the
value of any number of investment units of any number of loan
investments. The value of the investment unit may be based on
supply and demand for the investment units on the transactional
exchange 2502. For example, after a purchase and sale of investment
units, the valuation module 2608 may update the price of the
investment units to be the sale price (or based on the sale price).
The valuation module 2608 may base valuation on past sale prices
over time, current sale prices, volume of transaction, percentage
of the outstanding investment units for a particular loan
investment that was involved or was not involved in the sale
(and/or similar sales over time), volatility of the investment
units for the loan investment, changes in value of the underlying
investment (e.g., defaults in payment, foreclosures, prepayments,
changes in value of the property, and/or the like), and/or the
like.
[0293] The valuation module 2608 may change the value of all or
some investment units for any number of loan investments at any
time. In various embodiments, the valuation module 2608 changes the
value of all or some investment units for any number of loan
investments at a particular daily time (e.g., midnight), weekly, or
at any time. In some embodiments, the valuation module 2608 updates
or changes the value of all or some investment units when an event
occurs (e.g., a purchase/sale of an investment unit, default on a
payment, foreclosure, prepayment, or the like).
[0294] The transaction module 2610 may be configured to receive buy
or sell requests for investment units from a user (e.g., potential
investor or investor). The transaction module 2610 may match buy
and sell requests and then assist in the transaction thereby acting
as a broker as well as an exchange. For example, when an investor
wishes to sell a predetermined number of investment units in a
particular loan investment, the investor may provide a sell request
to the transaction module 2610. The transaction module 2610 may
keep track of the sell request if there are no immediate buy
requests for that particular loan investment. In some embodiments,
the investor may include a transaction duration which indicates for
how long a sell request for a by request is to stay "open" (e.g.,
for the buyer sell request to be accepted by another individual to
make the transaction occur).
[0295] If the transaction module 2610 receives a buy request for a
particular number of investment units of a particular loan
investment, the transaction module 2610 may check to see if there
are any open sell requests for that particular loan investment. If
there are not any sell request for that particular loan investment
or if there is insufficient investment units that are to be sold by
the sell requests, the transaction module 2610 may save the by
request until the transaction duration expires. In some
embodiments, the transaction module 2610 may identify any number of
current investors that own all or a portion of the loan investment
and then contact any number of the current investors to indicate
that there is an opportunity to sell all or some of their
investment units (e.g., the transaction module 2610 may identify
the sale price of the buy request, number of units that the user
seeks to buy, contact information to assist in the transaction,
identification of the user, and/or the like). In response, one or
more investors may provide a sell request to the transaction module
2610. If one or more sell requests match the parameters of the by
request (e.g., number of shares, purchase price, and the like),
then the transaction module 2610 may execute the trade. In
executing the trade, the transaction module 2610 may transfer
payments between the parties (or control payment through a
financial institution) and change ownership of the investment
units. The transaction module 2610 may also inform the property
investment and liquidity system 108 of the change so that the
property investment and liquidity system 108 may make changes in
daily returns as necessary. Subsequently, the valuation module 2608
may change the value of all or some investment units related to the
particular loan investment.
[0296] If one or more sell requests do not match the parameters of
the by request (e.g., number of shares, purchase price, and the
like), then the transaction module 2610 may indicate the
differences between the parties to enable them to work out an
acceptable deal. In some embodiments, exchange module 320 through
the communication module 302 may provide a secured and logged
communication channel (e.g., online voice communication or text
communication) between the parties to enable them to discuss and
negotiate a deal. Their discussions may be tracked and logged as
evidence of their agreement. The property investment and liquidity
system 108 may further provide an agreement including the
agreed-upon terms between the parties to enable the transaction to
move forward. Once signed, the transaction module 2610 may conduct
the trade based on their agreed-upon terms.
[0297] In executing the trade, the transaction module 2610 may
transfer payments between the parties (or control payment through a
financial institution) and change ownership of the investment
units. The transaction module 2610 may also inform the property
investment and liquidity system 108 of the change so that the
property investment and liquidity system 108 may make changes in
daily returns as necessary. Subsequently, the valuation module 2608
may change the value of all or some investment units related to the
particular loan investment.
[0298] The dashboard module 2612 may be configured to provide a
dashboard for each investor and potential investor. A dashboard may
be a personalized interface that indicates for that particular
potential investor investment units they own, any open sell
requests, any open buy requests, status of negotiations, saved
information regarding a loan investments, and the like. In some
embodiments, the dashboard may be able to execute ongoing queries
(e.g., in SQL or python) to search periodically or continuously for
loan investments that meet certain criteria (e.g., volatility,
purchase prices, defaults, foreclosures, number of investors,
investments of particular investors, or the like). The dashboard
module 2612 may further be configured to provide alarms through the
interface or to the investor's smartphone or email account when
loan investments meet certain criteria.
[0299] The interface module 2614 may be configured to provide an
interface for the transactional exchange 2502. The interface module
2614 may be configured to provide listing information regarding any
number of loan investments, prices of investment units, history or
pricing, default information, prepayments, loan particulars (e.g.,
amount of loan, expected duration of loan, property value that
supports the loan, and/or the like).
[0300] In one example, the interface module 2614 may generate
and/or provide an interface to enable a user to navigate to a page
or card that identifies loans and/or properties with loans for
potential investment or sale. The page or card may provide property
information including, for example, the property address,
characteristics of the property (e.g., number of floors, zoning,
when built, number of bedrooms, number of bathrooms, square feet,
square feet of lot, garages, additions, fixtures, and/or the like),
estimated value of the property, tax of property, any encumbrances
on the property, any easements associated with the property, use of
the loan, and/or loan information (e.g., value of the loan,
duration of the loan, past payments, prepayments, defaults, missed
payments). The page or card may further include information
identifying current investors and their investments (e.g., the
number of shares or amount of ownership of the loan).
[0301] The page or card may further include contact information for
the investors. In some embodiments, a user navigating the
transaction exchange may search for a particular card (e.g., a GUI)
regarding a particular loan. The card may identify investors of the
loan, including the amount of the loan that they funded. In some
embodiments, the card may include a link to enable secured
communication between the user and one or more selected investors.
If the link or object is activated, the property investment and
liquidity system 108 may attempt to establish a VPN or other
secured connection between the user and one or more of the selected
investors. The secured connection may be a voice connection, text
connection, email, or the like. In some embodiments, communications
over the connection (e.g., secured or otherwise unsecured) may be
tracked and logged to store communication over the connection. In
addition or instead of a secured connection, the card may include
contact information for those investors (e.g., email, phone number,
or the like).
[0302] The registration module 2616 may be configured to allow a
user (e.g., potential investor or investor) to register with the
transactional exchange 2502. The registration module 2616 may be
configured to request information from a user before registration.
The registration module 2612 may require a user to state that they
are accredited, provide information regarding accreditation,
request information regarding accreditation, perform due diligence
to confirm accreditation, and the like. The user may also be
required to provide identification information, contact
information, banking information, and the like. They may also be
required to accept an agreement to be bound by trades performed by
the transactional exchange 2502 on their behalf.
[0303] FIG. 27 is a flowchart of an interaction with a
transactional exchange 2502 in some embodiments. FIG. 27 depicts
property owner 202 (e.g., similar to property owner 202 of FIG. 2),
property investment and liquidity system 108 (similar to property
investment and liquidity system 108 of FIGS. 1 and 2), the
transactional exchange 2502, a first investor 2702, and a second
investor 2704. In this example, the first investor 2702 may not be
a current investor in any loan opportunity or loan investment. They
may be, for this example, an accredited investor or any other
entity interested in buying or selling using the transactional
exchange 2502. The second investor 2704 may be, for this example, a
current investor in a loan (e.g., owning or funding a portion of a
loan).
[0304] The first investor 2702 and the second investor 2704 may
each be digital devices that are operated by different entities
that are remote from each other and the property investment and
liquidity system 108.
[0305] In step 2706, the property investment and liquidity system
108 provides a loan to the property owner 202.
[0306] In step 2708, the initial valuation module 2602 determines
an initial valuation of investment units. The initial valuation may
be $1 per investment unit (e.g., $1 per share or bond).
[0307] In step 2710, the issuer module 2604 may issue the
investment units to the initial funding investors and list all or
some of the investment units with the transaction exchange
2502.
[0308] In step 2712, the registration module 2616 may register the
first investor 2702. In one example, the first investor 2702 may
utilize a digital device to navigate to the transactional exchange
2502 or the property investment and liquidity system 108 to
register with the transactional exchange 2502. The registration
module 2616 may request that the first investor 2702 provide a user
name and password as well as set up an account with the property
investment and liquidity system 108 or a financial institution.
They may also be required to agree to terms of service and to be
bound by any agreements that they sign related to their trades
using the transactional exchange 2502. In various embodiments, the
registration module 2616 may require additional information such as
a social security number, bank account, credit score, salary,
number of years of employment, past tax records, and/or the like to
confirm their identity and confirm their ability to undertake
transactions on the transactional exchange 2502. In this way, the
transactional exchange 2502 may provide safeguards to those wishing
to trade on the system.
[0309] In various embodiments, the registration module 2616 may
require the first investor 2702 to indicate that they are an
accredited investor and provide information that may be confirmed
regarding their status. For example, the registration module 2616
may require credit information to conduct a credit check, salary
information to check income, bank account information to confirm a
minimum amount of liquidity, tax forms, and/or the like. The
registration module 2616 may conduct due diligence to confirm that
the first investor 2702 qualifies as an accredited investor.
[0310] In step 2714, the valuation module 2608 may calculate a
change to the valuation of any or all investment units. The
valuation of investment units may change based on past
sales/purchases, received requests to sell or purchase investment
units, volume of past sales of a particular investment unit,
default of payment related to a property associated with the loan
and the investment units, foreclosure, credit risk of property
owner, prepayments, changes in value of the underlying property,
and/or the like. The valuation module 2608 may update valuation at
any time. In some embodiments, the valuation module 2608 updates
valuation periodically (e.g., midnight, Eastern Time, daily).
[0311] In step 2716, the first investor 2702 provides a query to
the transactional exchange 2502. The first investor 2702 may query
the transactional exchange 2502 for a specific loan investment,
specific property, investor investments, time left in loan, price,
volatility, default of payments, and/or the like.
[0312] In step 2718, the transaction module 2610 may search the
system based on the query (e.g., utilize the query in a SQL search
or the like) to find listings that match the criteria of the query
and provide the resulting investment information to the first
investor 2702. The investment information may include a list of one
or more loan investments including price of investment units,
status of loan (e.g., in default, foreclosure pending, good
standing), names of current investors, amounts of investment units
owned by different investors, and/or the like. The first investor
2702 may conduct additional searching of any number of the listings
to perform further research.
[0313] In step 2720, the transaction module 2610 may receive a buy
request from the first investor 2702. The buy request may include
an identifier for the loan investment, a number of desired
investment units, and a desired price.
[0314] In step 2722, the transaction module 2610 may check of any
open sell requests related to the loan investment related to the
buy request. If there is an open sell request that matches the buy
request for the desired number of loan investments at the desired
price, the transaction module 2610 may conduct the trade. In some
embodiments, a sell request may include a range of acceptable
prices (e.g., at $X and above) as well as a range of investment
units that the selling investor is willing to sell (e.g.,
3,000-10,000 investment units). Similarly, the buy request may
include a range of acceptable prices (e.g., at $Y or below) as well
as a range of investment units that the buyer is willing to
buy.
[0315] If there are no open sell requests related to the loan
investment related to the buy request, the transactional exchange
2502 may check if there is an interest to sell. In this example,
the transaction module 2610 may reach out to the second investor
2704 and/or any other current investors of the loan investment to
request if they are interested in selling investment units at the
buyer's desired price. In some embodiments, each investor of a loan
investment may indicate if the property investment and liquidity
system 108 is allowed to contact them if there is an opportunity to
sell or buy investment units.
[0316] In step 2726, the second investor 2704 provides a sell
request to the transaction module 2610. The sell request may match
one or more terms of the buy request (e.g., number of investment
units to sell, price, or the like) or, alternately, the sell
request may not match any of the terms of the buy request.
[0317] In step 2728, if one or more terms of the buy and sell
requests are different, the transaction module 2610 may provide the
information to the first investor 2702 and the second investor 2704
to enable them to work through the communication to come to an
agreement. In some embodiments, the transaction module 2610 creates
a channel that allows the first investor 2702 to communicate with
the second investor 2704 for negotiation.
[0318] In one example, the transactional exchange 2502 may enable
secured communication between the user and one or more selected
investors. If the link or object is activated, the property
investment and liquidity system 108 may attempt to establish a VPN
or other secured connection between the user and one or more of the
selected investors. The secured connection may be a voice
connection, text connection, email, or the like. In some
embodiments, communications over the connection (e.g., secured or
otherwise unsecured) may be tracked and logged to store
communication over the connection.
[0319] In step 2730, the transaction module 2610 conducts the
exchange and transfers investment units from the second investor
2704 to the first investor 2702 (by reassigning or reissuing the
investment shares) and provides funds from the first investor 2702
to the second investor 2704 (e.g., through a wire transfer, credit,
cryptocurrency, or the like)
[0320] In step 2732, the transaction module 2610 provides the
transaction information to the property investment and liquidity
system 108. The transaction information may be the number of
investment units transferred, the identity of the seller, the
identity of the buyer, and the like. The property investment and
liquidity system 108 may update information regarding
ownership.
[0321] In step 2734, the property investment and liquidity system
108 may update daily returns and start to provide daily returns the
same day as the transaction or at an amount of time after the
transaction (e.g., 24 hours). The property investment and liquidity
system 108 may update records for transferring daily returns at any
time.
[0322] In step 2736, the valuation module 2608 may update the
valuation of the investment units of the loan investment based in
part on the transaction. As discussed herein, the valuation module
2608 may calculate a change to valuation of any or all investment
units. The valuation of investment units may change based on past
sales/purchases, received requests to sell or purchase investment
units, volume of past sales of a particular investment unit,
default of payment related to a property associated with the loan
and the investment units, foreclosure, credit risk of property
owner, prepayments, changes in value of the underlying property,
and/or the like. The valuation module 2608 may update valuation at
any time. In some embodiments, the valuation module 2608 updates
valuation periodically (e.g., midnight, Eastern Time, daily).
[0323] Although FIG. 27 discusses the first investor 2702 seeking
to buy investment units, it will be appreciated that the exchange
module 320 may support those looking to sell investment units
without an initial buy request or any number of transactions.
[0324] Further, in some embodiments, the exchange module 320 may
enable investors to create open futures contracts, puts, options,
or the like.
[0325] Throughout this specification, plural instances may
implement components, operations, or structures described as a
single instance. Although individual operations of one or more
methods are illustrated and described as separate operations, one
or more of the individual operations may be performed concurrently,
and nothing requires that the operations be performed in the order
illustrated. Structures and functionality presented as separate
components in example configurations may be implemented as a
combined structure or component. Similarly, structures and
functionality presented as a single component may be implemented as
separate components. These and other variations, modifications,
additions, and improvements fall within the scope of the subject
matter herein.
[0326] It may be apparent to those skilled in the art that various
modifications may be made and other embodiments may be used without
departing from the broader scope of the discussion herein.
Therefore, these and other variations upon the example embodiments
are intended to be covered by the disclosure herein.
* * * * *