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.
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 🙃