My idea is some non profit gets setup to manage a system where someone announces their mortgage and then they can have friends, family and second and third degree friends and families finance your loan.
Let’s say someone buys a $250k house. Each person puts in $100 and then they get a receipt showing they are owed $200 against their 1/2500th share of the mortgage. Repayments are paid the $200 in return in a random time frame of between the first month to the last month 30 years later. Repayment is completely randomized, meaning you could get your money back really soon… Or a really long time from then.
There are a lot of other ways you could build on this idea.
Isn’t this what jeff Bezos is doing with fractional real estate investment, except evil?
Not pooping on the idea, I would totally toss money towards a fractional mortgage to help someone else get a home, just noting how the upside down universe version of this idea is already out there.
sauc: https://arrived.com/
I had a similar idea. If you’re saving money for a down payment in a traditional bank account, the money is growing slower than real estate, so you’re falling behind. Investing in real estate backed securities solves that. And the beauty of it is that if the market turns down, so do house prices so you’re not getting farther from your goal of home ownership. Whereas if you invest in stocks you could have the stock market drop while housing stays high.
as long as the investment mortgages aren’t sub prime 🙃
There are a lot of corporations doing this with investments too.
I did a quick skim of that website and it seems to be marketed towards the opposite side of the equation, the investors.
My idea is more about the mortgage and using crowd sourcing in social circles. The way I have structured the “investment” in my scheme is purposefully done to reduce lender animosity by making the payout more of a gamble, than a traditional investment.
I have been toying with ideas to even further tweak the model to increase investment. For example giving slightly better odds on repayment to investors that have used the platform/process to procure their own mortgage.