Michael Patrick Doty

US Patent:

20060271458, Nov 30, 2006

Filed:

May 27, 2005

Appl. No.:

11/139393

Inventors:

Charles Arnold - Denver CO, US
Michael Doty - Thornton CO, US

International Classification:

G06Q 40/00

US Classification:

705035000, 705040000

Abstract:

A method for financing real estate purchases using a shared equity model is disclosed. In the disclosed method, the land portion of the real estate is financed using a land lease agreement, while the improvements to the land (e.g., a house) are purchased under a typical mortgage scenario. The land lease agreement provides for a required minimum annual return on investment to the land equity investor over a predetermined term. The borrower must pay an additional required minimum monthly payment, which may be made to the lender to pay down the mortgage, in addition to the payment required under the mortgage such that the additional required minimum monthly payment is sufficient to meet the required minimum annual return specified in the land lease agreement. Finally, the borrower may defer lease payments to the equity investor, and pay them at some date in the future.