WO2023244508A1 - Procédés et systèmes de transmission d'informations - Google Patents

Procédés et systèmes de transmission d'informations Download PDF

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Publication number
WO2023244508A1
WO2023244508A1 PCT/US2023/024936 US2023024936W WO2023244508A1 WO 2023244508 A1 WO2023244508 A1 WO 2023244508A1 US 2023024936 W US2023024936 W US 2023024936W WO 2023244508 A1 WO2023244508 A1 WO 2023244508A1
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WO
WIPO (PCT)
Prior art keywords
tokens
hpi
asset
spe
home
Prior art date
Application number
PCT/US2023/024936
Other languages
English (en)
Inventor
Christopher Griffin DIESCH
Michael Wayne DIESCH
Original Assignee
Quarter, Inc.
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Priority claimed from US17/806,677 external-priority patent/US20220358576A1/en
Application filed by Quarter, Inc. filed Critical Quarter, Inc.
Publication of WO2023244508A1 publication Critical patent/WO2023244508A1/fr

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Classifications

    • H—ELECTRICITY
    • H04—ELECTRIC COMMUNICATION TECHNIQUE
    • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
    • H04L9/00—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols
    • H04L9/50—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols using hash chains, e.g. blockchains or hash trees
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/02—Banking, e.g. interest calculation or account maintenance
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/03—Credit; Loans; Processing thereof
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/04—Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/06—Asset management; Financial planning or analysis
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q50/00—Information and communication technology [ICT] specially adapted for implementation of business processes of specific business sectors, e.g. utilities or tourism
    • G06Q50/10—Services
    • G06Q50/16—Real estate
    • H—ELECTRICITY
    • H04—ELECTRIC COMMUNICATION TECHNIQUE
    • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
    • H04L9/00—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols
    • H04L9/32—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols including means for verifying the identity or authority of a user of the system or for message authentication, e.g. authorization, entity authentication, data integrity or data verification, non-repudiation, key authentication or verification of credentials
    • H04L9/3297—Cryptographic mechanisms or cryptographic arrangements for secret or secure communications; Network security protocols including means for verifying the identity or authority of a user of the system or for message authentication, e.g. authorization, entity authentication, data integrity or data verification, non-repudiation, key authentication or verification of credentials involving time stamps, e.g. generation of time stamps
    • H—ELECTRICITY
    • H04—ELECTRIC COMMUNICATION TECHNIQUE
    • H04L—TRANSMISSION OF DIGITAL INFORMATION, e.g. TELEGRAPHIC COMMUNICATION
    • H04L2209/00—Additional information or applications relating to cryptographic mechanisms or cryptographic arrangements for secret or secure communication H04L9/00
    • H04L2209/56—Financial cryptography, e.g. electronic payment or e-cash

Definitions

  • FIGS. 1-4 illustrate various structures that may be used in investing, according to aspects of the disclosure.
  • FIG. 5 illustrates an example computer system, according to aspects of the disclosure.
  • FIG. 6 illustrates an example method for using blockchain, according to aspects of the disclosure.
  • FIG. 7 illustrates an example of an MRE calculation flow, according to aspects of the disclosure.
  • FIG. 8 illustrates an example of using blockchain for investing, according to aspects of the disclosure.
  • FIG. 9 illustrates various equations that can be used for investing, according to aspects of the disclosure.
  • FIGS. 10-12 illustrate various parties, transactions and elements that can be used to board a home onto the platform.
  • FIG. 13 is an example screen shot, according to aspects of the disclosure.
  • impact investors can participate alongside return oriented investors by homogenizing home funding across all strata of homeowners and risk profiles.
  • investment capital can be segmented from the capital supplied by or on behalf of the homeowner in the amounts dictated by quarters MRE calculation.
  • a MRE of 14.25% can be calculated based on this borrower’s risk profile, meaning that the borrower can have a down payment of $28,500 or 14.25% of the $200,000 purchase price to purchase the home.
  • Investors can purchase the other 85.75% of the home for $171,500, with assurances that the investment is secure due to the MRE calculations and risk pool.
  • a 10% equity purchase and resale by an impact investor to a homeowner calculated using market rent payments and a 5 year repurchase window can generate an annualized return of more than 20% for the impact investor.
  • the impact investors along with the homeowner can take first losses in the event of a homeowner default.
  • a framework can be provided to enable impact investors to plug and play with the platform design.
  • An experience can be provided for impact investors that can allow them to easily design a program to their specific needs (e.g., within predetermined guidelines) and leverage the infrastructure with as little effort as possible.
  • this framework can be similar to an Amazon experience, except with impact investors instead of retailers leveraging the infrastructure.
  • a blockchain based smart contract can be used, although those of ordinary skill in the art will see that a non-blockchain based contract (and software to implement the same) can also be used.
  • FIG. 6 illustrates an example process for using blockchain, according to aspects of the disclosure.
  • the asset tokens can be generated using a cryptographic hash of information that uniquely identifies the asset.
  • the tokens can have an owner that uses an additional public/private key pair.
  • the owner public key can be set as the token owner identity, and ownership proof can be established by providing a signature generated by the owner private key and validated against the public key listed as the owner of the token.
  • Asset tokens can digitize ownership interests in certain assets (e.g. real property) to enhance access to the assets, enable tracking of assets based on their characteristics, and create efficiencies in supply chain management and trade finance. These tokens may be used as a medium of exchange and as an alternative to fiat currencies in, for example, settlement, payments, international remittances, investments, financing, and other activities.
  • assets e.g. real property
  • These tokens may be used as a medium of exchange and as an alternative to fiat currencies in, for example, settlement, payments, international remittances, investments, financing, and other activities.
  • asset tokens may be issued and/or exchanged based on availability of inventory of the asset in accordance with established procedures and exchanges for the asset.
  • Transaction of asset tokens can include purchasing of asset tokens, redeeming of asset tokens, transferring of ownership of asset tokens, providing of assets that back the asset tokens, etc.
  • the asset tokens and associated transactions may be recorded in a blockchain based smart contract.
  • Each asset token may be associated with a standardized smart contract that specifies transactions that can be performed on the asset.
  • the blockchain may also include data as a form of transaction placed in a distributed database that maintains a continuously growing list of data records hardened against tampering that maintains a continuously growing list of data records hardened against tampering and revision, and may be confirmed and validated by the blockchain network through proof of work and/or any suitable verification techniques associated therewith.
  • data regarding a given transaction may further include additional data that is not directly part of the transaction appended to transaction data.
  • the inclusion of such data in a blockchain may constitute a transaction.
  • the inclusion of such data in a blockchain may constitute a transaction.
  • the smart contract itself may be recorded as a transaction in the distributed ledger using an identity token that is a hash (i.e., identity token) of the computer code so that the computer code that is executed can be authenticated.
  • identity token that is a hash (i.e., identity token) of the computer code so that the computer code that is executed can be authenticated.
  • a constructor of the smart contract executes, initializing the smart contract and its state.
  • the computer code can ensure that all the pre-defined conditions are met before the transaction is recorded in the distributed ledger.
  • a smart contract may support the sale of an asset.
  • the inputs to a smart contract to sell a portion of an asset may be the identity tokens of the seller, the buyer, and the asset and the sale price.
  • the computer code ensures that the seller is the current owner of the asset and that the buyer has enough funds in their account.
  • the computer code then records a transaction that transfers the ownership of the asset to the buyer and a transaction that transfers the sale price from the buyer's account to the seller's account.
  • the asset token transactions can be related to the purchase and sale of a portion or an entirety of a real property between one or more property occupants (e.g. homeowners) who reside at the property and/or one or more investors in the property who have a financial interest in the property.
  • the proportion of ownership between the various occupants and investors can be based on a proportion of the tokens and TIC interest that are owned by the entity.
  • Such transactions can provide capital to homeowners who are not accredited investors to purchase their houses and have an undivided fractional ownership of the house with the investors. For example, if the homeowner funds 5% of the purchase price and investors fund interests held by the investors per month. The recurring rent payments can be made to the investors via smart contracts. Thus, the investors can receive the cash flow from their investments and the homeowner will have the right to live in the house, subject to the rent payments.
  • each home can have 95,000 non-divisible asset tokens minted for transactions.
  • a homeowner-to-be can purchase a 5% interest in the residential property and receive a 5% TIC interest in the home.
  • Investors can purchase a 95% interest in the residential property and receive 95,000 asset tokens
  • An entity that facilitates this sale e g. a real estate website) can receive a commission the net sales proceeds from the consideration paid by the homeowner and the investors.
  • a homeowner who owns a fraction of the home has a positive money event, the homeowner may buy more fractions of the home owned by the community of investors. For example, if the homeowner wants to pay an additional $25,000, the asset token ownership positions of all owners can be adjusted, and $25,000 worth of asset tokens can be redeemed and $25,000 worth of TIC ownership transferred to the homeowner. The homeowner’s new monthly rent payments can also be reduced accordingly. Alternately, if the homeowner needed more money, the homeowner can trade fractions of the home. In such a case, the homeowner’s monthly rent payments can be increased accordingly.
  • the homeowner can have the right to live in the house.
  • occupancy right can be evidenced by an occupant token that would be specific to each residential property. Holding an occupant token can require payment of rent to investors via smart contracts.
  • the occupant token may be involuntary redeemed by the investors if there were an event of default by the homeowner as set forth in the agreement between the homeowner and the investors.
  • the homeow ner can sell his or her asset tokens and the corresponding occupant token, which would then be transferred to a new homeowner.
  • the asset-backed token transactions can be structured in the following ways: (i) Tenant-in-Common (TIC) structure (e.g., see FIG. 1), (ii) Delaware Statutory Trust (DST) structure (e.g., see FIG. 2), and (iii) Limited Liability Company (LLC) structure (e.g., see FIG. 3).
  • FIG. 4 illustrates a hybrid structure.
  • the tokens Under the TIC structure, the tokens can be represented by direct Tenant-in-Common interests in the asset.
  • the tokens Under the DST structure, the tokens can be represented by beneficial interests in a DST to be governed by a trust agreement. This structure can eliminate the need to record a deed to evidence the change of ownership every time a transfer of a TIC Interest is made.
  • the tokens can be represented by membership interests in an LLC and/or DST, which would be the co-tenant with the homeowner.
  • Homeowner may own an undivided fractional (e.g. 5%) TIC ownership interest in the house alongside the remaining (e.g. 95%) TIC ownership interest of the investors’ LLC and/or DST. Together, the homeowner’s TIC Interest and Investor LLC’s and/or DST TIC Interest can collectively constitute a “Co-Tenant TIC Interests” under such a structure.
  • both the homeowner and Investor LLC and/or DST can have voting and management rights, which can be documented via the TIC Agreement. Investors can be the holders of the LLC or DST Interests in Investor LLC and/or DST. If the homeowner wishes to purchase or sell its Co-Tenant TIC Interest from or to Investor LLC, then Investor LLC can facilitate such purchase or sale and adjust the rental payments accordingly relative. If the homeowner wishes to purchase its Co-Tenant TIC Interest from or to Investor DST, then Investor DST can facilitate such purchase and adjust the rental payments accordingly relative.
  • MRE Minimum Retained Equity
  • LTV can be the ratio loan amount against a property to the actual value of the property.
  • MRE Minimum Retained Equity
  • DTE Debt to Income
  • FIG. 7 illustrates an example MRE calculation flow, according to aspects of the disclosure.
  • LTVs don’t exist (e.g., as there may not be loans, and instead home ownership may be ’’fractionalized”). Instead, the LTV value can be roughly equivalent to the MRE and can be treated as such for the purposes of producing initial values to use for the model.
  • the data can be fit to a non-linear model to make determinations about how the scores between the ’’blocks” of credit scores/LTVs/DTIs behave.
  • a non-linear model can be chosen as the relationship being modeled may be inherently non-linear as there is a threshold above and/or below which changes in either credit score or LTV no longer have an appreciable effect on default rates.
  • the function resulting from the fitting of available data blocks can be a multivariate equation we can represent as
  • C s can be the credit score of a consumer
  • Emm can be the minimum retained equity
  • I r can be the Debt to Income ratio (DTI)
  • DTI Debt to Income ratio
  • I r can be the expected default rate based on the real world data available.
  • D m can be the maximum tolerable chance of default
  • C s can be the consumer’s credit score
  • Lean be the debt to income ratio
  • E(Z> m , G) can evaluate to the minimum retained equity the consumer may need to have to keep below the maximum tolerable default change.
  • the E(£> m , C s , Ik) function can be refit and tuned to provide more accurate data.
  • the platform can be designed to have a risk pool which can share the risks of every property of the network, the risk pool can holds 1% of the value of each home on the network, which can entitle it to 1% of the rent and/or HPI accrual for each property'. Additionally this risk pool can be evaluated with the MRE for each property assumed to be recoverable at some rate R.
  • the total assets can be held by the risk pool and can be computed as shown in EQUATION 1, where Hh can be the total number of HPI tokens held by the risk pool, H v can be the current value of HPI tokens, Vh can be the value of the home, Rh can be the rent rate of the home, and/or Ph can be the number of rent payments made by the occupant of the home
  • U can be calculated for each property as:
  • R can be the normalized recovery rate
  • Eh can be the MRE for the property
  • Evaluating these values for each home in the network and normalizing them by their likelihood of default can provide the total loss that is the risk pool that can be responsible for covering using EQUATION 2.
  • D can be the function described in the analysis of credit scores
  • Ch can be the credit score for the homeowner
  • Eh can be the MRE for the homeowner
  • Uh can be calculated as shown above.
  • Rheaith ⁇ 1 The pool will not have enough assets to cover the expected losses.
  • Rheaith 1: The pool has exactly enough assets to cover the expected losses.
  • Rheaith can be a current risk pool health
  • Utot can be the total expected losses for the risk pool
  • D(C Eh,Ih) can be the expected default chance for the property
  • Uh can be the unrecoverable losses for the house if it were to default
  • a tot can be the current value of assets held by the risk pool
  • Vh can be the value of the home.
  • FIGURE 9 illustrates an example of how smart contracts and blockchain can be used for investing, according to aspects of the disclosure.
  • ownership of the home can be granted to both the occupant and the SPE as tenants in common via a warranty deed.
  • a smart contract can be created by the SPE which can issue asset tokens which can represent ownership in the SPE and can be sold to the investors to fund the purchase of the TIC interest pursuant to step 1.
  • the Asset tokens can be distributed to the investors and also to the risk pool.
  • a smart contract can be created between the occupant and the SPE which can contains a tenants in common agreement and a lease.
  • a smart contract can be created by the SPE which can issue the occupancy token to the occupant.
  • a smart contract can be created which can contain an agreement to assign home appreciation to the HPI asset pool and in exchange can issue HPI tokens which can be included in the sale of asset tokens.
  • the HPI tokens can represent ownership in the appreciation rights and can be distributed to the investors with the asset tokens and also to the platform owner/manager.
  • all of the transactions can be recorded onto the blockchain.
  • Applicant A person who may make an application to become a homeowner and occupant of a home on the platform.
  • Back End DTI A ratio that can be expressed as a percentage which indicates what portion of a person’s monthly income goes towards paying debts.
  • Base Rent The amount which may need to be paid each month by the occupant excluding other items (e.g., taxes, insurance, HO A fees, other escrow impounds or pass through payments for third party obligations).
  • other items e.g., taxes, insurance, HO A fees, other escrow impounds or pass through payments for third party obligations.
  • Burning may refer to the permanent removal of existing tokens from circulation.
  • Capital Improvement Value The calculated value of capital Improvements that may be made to a home by the occupant.
  • Current Adjusted Asset Token Nominal Value The nominal value of an asset token, which may be expressed in fiat currency (USD), whose nominal value may have been adjusted since issuance as a result of a decline in the value of the home owned by the SPE.
  • Current Enhanced Valuation The valuation of record which may be based using an enhanced valuation methodology such as a BPO, full appraisal and/or other valuation methodology adopted by the platform.
  • AVM Automated Valuation Model
  • Enhanced Rent The additional amount which may be paid by the occupant to an impact investor, which may be calculated as the market rent less the platform (e.g., owned and/or operated by Quarter) rent for a given home.
  • Excess Equity The amount of unencumbered equity which may be held by the occupant which is in excess of their Minimum Retained Equity (MRE).
  • Fiat Currency A national currency which can usually be issued by a country's government or central bank, for example US dollars.
  • HP I Equity Pool A pool of home equity which can include the aggregate appreciation of all of the homes on the platform.
  • HP I Realization Percentage The amount, stated as a percentage between 0 and 100, which can be applied to the HPA for the current period in order to calculate the number of HPT Tokens to be unlocked.
  • HPI Token A token issued by the platform which can be backed by the home price appreciation of all of the homes on the platform.
  • MRE Minimum Retained Equity
  • Initial Holder A person or entity who acquired tokens in an initial issuance directly from the platform owner/operator.
  • Minimum Retained Equity The minimum equity an occupant may need to retain based on current underwriting criteria. This can be a dynamic number which can change based on property and/or occupant profiles at a given moment in time and can be used to manage default risks.
  • Occupant The tenants in common owner who may be designated as the homeowner and may be in possession of the occupancy token.
  • Qualified Institutional Buyer A company that can manage a certain amount (e.g., at least $100 million) of securities on a discretionary basis and/or is a registered brokerdealer investing a certain amount (e.g., at least $10 million) in non-affiliate securities.
  • Quarter Platform Preferred Provider A real estate agent and/or brokerage with whom the platform network may have negotiated a contract to provide home listing and/or sales services.
  • Quarter Transaction Fee A fixed fee which may be assessed by the platform on all transactions which can take place on the platform, except the initial boarding onto and/or the exit of a home from the platform, and/or the initial purchase of asset tokens by the initial holder when a home is boarded into the platform.
  • Quarter Real Estate Commission Fund A fund that can be established to pay future real estate sales commissions on behalf of the property owners. This can be funded monthly from the platform fees collected by the platform as the rent payments are made.
  • Rent The total payment which may need to be paid each month by the holder of the occupant token which can include base rent, platform fees and when applicable, taxes, insurance and/or HOA escrows.
  • Retained Risk Pool A pool of asset tokens which may be held by the network to form a riskpool for the purpose of mitigating occupant default risk.
  • SPE Specicd Purpose Entity
  • Tenants in Common Agreement A legal agreement which can govern how a tenants-in- common partnership will be managed.
  • Triple Net Lease A lease agreement that can be held for a property, whereby the tenant or lessee promises to pay all the expenses of the property, including real estate taxes, building insurance, and/or maintenance.
  • the occupancy token can be a non-fungible token which can be issued to a homeowner by an SPE upon execution by the occupant and the SPE of the TIC agreement and/or triple net lease and closing of the purchase of a TIC equity interest in the subject home.
  • the occupancy token can confer certain rights and/or obligations upon the holder as described herein.
  • the occupant can have the right to occupy the home pursuant to a jurisdictionally specific tenants in common agreement and/or a triple net lease which can contain, for example, the following provisions: i) The term can be perpetual unless terminated pursuant to pre-defined terms. ii) Rent can be paid by the occupant via the platform to the SPE in an amount that can be calculated as the sum of the base rent, platform fee, accrued late fees, and/or repayments of advances.
  • the rent payment can also include an impound for taxes, insurance and/or HO A fees.
  • the determination of whether there will be an escrow account impound may be based on an algorithm using various consumer and/or property data points and/or local jurisdictional requirements.
  • any impounded escrow payments can be paid to a third party escrow services provider.
  • the occupant may pay, separately from rent, property taxes, hazard insurance premiums and/or HOA fees (including fines) as they become due directly to the appropriate taxing, insurance, and/or HOA authorities/agent(s).
  • the occupant may need to timely pay any obligation which may become a lien on the property , including but not limited to: water and/or other utility bills, code enforcement fines, special assessments, and/or contractors hired by occupant to perform work or services on the home.
  • the occupant may have an obligation to perform and/or pay for all routine maintenance of the property not covered under a home warranty, which may be provided under the terms of the TIC Agreement and/or the triple net lease agreement.
  • the occupant If the occupant is not in compliance with the maintenance requirements (e.g., section l(a)(v)) and/or does not cure non-compliance within a pre-defined number of days of notification of the non-compliance, then the occupant can be considered in breach and/or a third party contractor may be hired at the occupants sole expense to perform the necessary maintenance work to bring the home back into compliance, which costs can be due and payable by occupant and added to the amount of the next rent payment.
  • the maintenance requirements e.g., section l(a)(v)
  • a third party contractor may be hired at the occupants sole expense to perform the necessary maintenance work to bring the home back into compliance, which costs can be due and payable by occupant and added to the amount of the next rent payment.
  • Any payment for third party contractors hired e.g., under section l(a)(vi) which fall due prior to the next scheduled rent payment can be advanced from the retained risk pool and can be reimbursed by the occupant.
  • Deductibles incurred under the terms of any home warranty program can be paid by the occupant.
  • Rent payments can be paid in fiat currency.
  • Late payment terms (fees and/or timing) can be determined.
  • the occupant can be required on each annual anniversary of their acquisition of the occupancy token to take and submit interior and exterior photos of the property using any computer.
  • any element of the system can be managed by an administrator and/or accessed by a user using any computer or combination of computers (e.g., desktop computer, laptop computer, mobile computer).. xi) If the occupant does not comply with pre-set rules (e.g., section l(a)(x)) within a pre-determined amount of time, the occupant can be notified of their non- compliance. If the occupant is still in non-compliance within a pre-determined amount of time after notification of non-compliance, a third party can be contracted to inspect the property and/or photographs and upload the photos. (Any extra costs associated with photos or any other issues related to the home or the system can be added to the amount of the next rent payment.)
  • pre-set rules e.g., section l(a)(x)
  • Any payment for a third party contractor hired under pre-defined criteria which may fall due prior to the next scheduled rent payment can be advanced from the retained risk pool and can be reimbursed to the retained risk pool when paid by occupant.
  • Any obligations under pre-defined criteria e.g., sections l(a)(iii), l(a)(iv), l(a)(iv), l(a)(vi), l(a)(vii) and/or l(aO(xi)
  • pre-defined criteria e.g., sections l(a)(iii), l(a)(iv), l(a)(iv), l(a)(vi), l(a)(vii) and/or l(aO(xi)
  • a hen may be placed on part or the entirety of the occupant's minimum retained equity for the amount of the shortfall.
  • Any payment obligations pursuant pre-defined rules e.g., section l(a)(ii) which are not paid within a pre-defined amount of days by occupant shall be paid on behalf of the occupant with funds advanced from the retained risk pool and may trigger an automated sale of an amount of excess equity sufficient to reimburse the network for advancing the defaulted payment(s).
  • a lien can be placed on the entirety of the Occupant’s Minimum Retained Equity for the amount of the shortfall xvi)
  • Placement of a hen e.g., pursuant to l(a)(xm) or l(a)(xv)
  • Placement of a hen can trigger an eviction proceeding, revocation of the occupancy token, sale of the home, or dissolution of the TIC agreement, or any combination thereof.
  • Local law can be used to determine the eviction proceedings, etc.
  • relevant valuation e.g., current or enhanced
  • fiat currency e.g., USD
  • the amount of equity to be transferred can be calculated by dividing the relevant valuation (e.g., current or enhanced) by the amount of fiat currency (e.g., USD) the homeowner can wish to receive, plus any transfer taxes or fees, and the network transfer fee Equity can be divisible to 001 and can be transferred by amending the TIC deed and can be recorded subject to an escrow agreement with a third party title company or other provider of settlement services.
  • the amount of funds received by the occupant can be net of any transfer taxes or fees, and the network transfer fee and can be settled to occupant in fiat currency (e.g., USD).
  • the occupancy token can confer upon the occupant the right to sell the home in its entirety as follows: i) The occupant can give notice to the investor(s) of their intent to sell the home and the price at which the home shall be listed. ii) Upon receipt of the intent to sell and the initial listing price, the investor(s) can have a right of refusal to purchase the property at the initial listing price for a predetermined amount of time. iii) Upon expiration of the right of first refusal, the occupant may list the property with the realtor who is a network preferred provider. iv) Notwithstanding section 1 (c)(iii) herein, if the occupant is a licensed realtor, they may act as the listing agent provided they are in compliance with all pre-defined terms and conditions.
  • Occupant may use listing and purchase contract addendums provided by the platform, which may state that any liability incurred as a result of occupants breach of the listing and/or sales agreement (e.g., such as a specific performance claim, etc.) cannot attach to the home, and may release and/or otherwise indemnify the investor(s) from any claims related to the listing and/or sale.
  • the investor(s) can have a right of first refusal for a predetermined amount of time to match the offer.
  • the investor(s) may have a pre-determined amount of time to decide if they wish to retain their interest and/or include it in the sale.
  • a decision by investor(s) to retain their interest in the property may not guarantee that they will retain the same percentage interest as they held previously, as the precise amount of their holdings may be based on the amount that the new occupant purchases relative to what the original Occupant was holding at the time of sale.
  • Equity reallocation may be done pro-rata among all previous investors wishing to retain their interest.
  • the rent and base rent can be recalculated based upon the sale price of the home. This can be true even if the existing investor(s) choose to retain their ownership interest.
  • the occupancy token can confer rights upon the holder to make capital improvements to the home and to benefit from those improvements.
  • Occupants can notify the platform as manager of the SPE not less than a pre-determined amount of time in advance of any plans to make capital improvements to the home.
  • a current enhanced valuation can be ordered by the platform to determine the pre and post improvement valuation of the home in order to calculate the capital improvement value.
  • the post improvement valuation can require an onsite inspection to confirm the work has been completed.
  • Occupant can bear the costs for the valuations.
  • the capital improvement value can be calculated by subtracting the post improvement value from the pre improvement value.
  • the TIC agreement can be amended to allocate the capital improvement value to the net proceeds that the occupant can receive upon sale of the home.
  • the asset tokens can be a fungible token issued by the SPE which can confer certain rights and obligations on the holder described herein.
  • the asset tokens can represent ownership in the home for any combination of the following: i) A SPE can be the named entity on the TIC deed on behalf on the investor(s) and can hold the real estate interest. ii) The special purpose entity can initially be a Limited Liability Company (LLC), but could also be a Delaware Statutory Trust (DST), Series LLC, Land Trust or other entity legally entitled to hold real property in the jurisdiction in which the home is located. iii) There may be >1 SPE named on the TIC deed for a home, for example both an LLC and a DST. iv) Asset tokens can be allocated to investors on a pro-rata basis in the same proportion as their ownership in the SPE and can be issued in exchange for a fiat currency investment (USD) in the SPE.
  • USD fiat currency investment
  • the platform may decide to accept other payments, such as stable coins or other fiat currencies in the future.
  • the token holder may have pre-determined governance rights in the SPE.
  • the holders of asset tokens may have any combination of the following rights: i) Right to receive rent payments pursuant to their proportional ownership in the SPE as calculated using a formula which can multiply the sum of the base rent and, subject to section 3(b)(1), any late fees, by the proportional number of asset tokens owned.
  • Late fees paid to occupant can be distributed to the holders of asset tokens proportionally to their holdings unless the underlying payment which generated the late fees was advanced by the retained risk pool in which case the late fees can be distributed to the retained risk pool.
  • the commission credit shall be capped at a maximum of 4% of the sale price.
  • Asset token holders can receive uninterrupted rent payments in the event of an occupant default to the limit of the assets held in the retained risk pool.
  • Asset token holders can not be required to fund any out of pocket expenses related to occupant default to the limit of the assets held in the retained risk pool.
  • asset tokens there can be a right to encumber asset tokens for leverage purposes.
  • the occupant can have the right, subject underwriting guidelines, to sell a portion of their TIC holdings (e.g., known as excess equity).
  • the asset token holders can be notified of the sale and can have the right but not obligation to purchase additional asset tokens being sold by the SPE to raise the capital to purchase the TIC interest from the occupant. Should more than one asset token holder request to purchase additional asset tokens, then the amount of asset Tokens can be divided and/or sold proportionally between them based on the amount of asset tokens owned immediately prior to the proposed transaction.
  • the holders of asset tokens can have the following obligations: i) So long as they are in compliance with all obligations as the holder of the occupancy token, the occupant may request at any time to purchase any fractional TIC amounts of their home from the SPE which may need to be honored. h) Any transaction conducted pursuant to Section 3(c)(1) can be transacted at the current valuation of the home if the pre-determined amount (e.g., $ or % (fractional amount) of the transaction is below a pre-determined amount, and/or at the current enhanced valuation if higher (also see section 1 (b)(ii) herein)).
  • the pre-determined amount e.g., $ or % (fractional amount) of the transaction is below a pre-determined amount, and/or at the current enhanced valuation if higher (also see section 1 (b)(ii) herein)
  • Net proceeds from any sale conducted by the SPE pursuant to Section 3(c)(i) hereunder may be distributed to asset token holders on a pro-rata basis. Net proceeds can be calculated under pre-determined rules. For example, as the total amount paid by the occupant minus the transaction fee and less any other costs of sale or transfer (recording fees, title costs, transfer taxes, etc.).
  • Transfers of TIC interests from the SPE to the occupant can be recorded on an amended deed and recorded subject to an escrow agreement with a third party title company or other provider of settlement services.
  • HPI tokens can be a fungible token issued by (a bankruptcy (BK) remote SPE which can exist for the purpose of holding the HPI equity pool assets and issuing the HPI tokens OR by the SPE which has contracts with the BK remote SPE such that each SPE can issue the HPI tokens independently).
  • HPI tokens can be backed by a pool of equity generated by appreciation of every home (or a subset of homes) on the platform. The ownership of this equity can be transferred to the HPI equity pool by the asset token holders in exchange for HPI tokens.
  • HPI tokens can be issued contemporaneously with asset tokens when a home can be initially boarded onto the platform.
  • HPI tokens issued with asset tokens can be locked when issued and/or can remain so unless they are unlocked pursuant to 4(d)(i)of this section.
  • Locked HPI tokens may not be separable from asset tokens and may transfer as part of any secondary transfers which occur subsequent to issuance.
  • a contract can be created with the SPE at the time a property is boarded which can assign the value of the home appreciation to the HPI asset pool, which can be collected upon sale and exit of the home from the platform.
  • the platform can establish predetermined time periods, known as HPI Intervals, when it can update the valuation of each home on the platform for the purpose of calculating the change in the value of each home during that period.
  • the home price appreciation (HP A) or home price depreciation (HPD) can be calculated.
  • the calculation can be the difference between the valuation conducted at the end of the previous HPI Interval and the valuation conducted at the end of the current HPI Interval.
  • the valuation of the home at the time of boarding or transfer shall be substituted for the previous HPI interval valuation.
  • Pro-rata adjustments can be made if the first period is within a pre-determined amount of time. d) In the event that the valuation at the end of the current HPI Interval exceeds either the valuation at the end of any previous HPI Intervals, which have occurred during the tenure of ownership of the current asset token holder, and/or the value at boarding and/or transfer as described in section 4(c)(i), then this valuation can also be designated as the HPI high-water mark. e) In the event that the valuation for the current HPI interval does not exceed the HPI high- water mark, then no HPI tokens may be unlocked.
  • HPI can be unlocked based on the following formula: i) The number of HPI tokens unlocked for each asset token can be computed by dividing the lesser of either the total HPA (e.g., in USD) minus the HPI high-water mark (e.g., in USD) or the total HPA (e.g., in USD), by the market price of the HPI tokens (e.g., also in USD) then multiplying the quotient by the HPI realization percentage (e.g., initially set at 90%) and then dividing the product by the total number of asset tokens held by investors.
  • the HPI realization percentage e.g., initially set at 90%
  • the current market value can be determined using a variety of possible methodologies. As defined in this document, there may be at least two tiers of valuations which may be utilized within the network: current valuation and/or current enhanced valuation i) Current valuations can be the default valuation of record within the system and/or can be performed using a best in class pre-determined third party AVM. ii) Enhanced valuations can be used in place of current valuations when certain trigger events occur.
  • An enhanced valuation may include any combination of AVMs, physical appraisals, brokers price opinions, sales contracts, asset token sales, or other pre-determined relevant inputs.
  • All valuations can be independent and provided to the network by non-affiliated third parties.
  • the physical condition of the property can be evaluated and documented. There can be a standard set of pre-determined inspections (e.g., wood destroying insects, radon testing, septic tank inspections, water quality, mold, private well inspection) supplemented by local practice which can be determined on a jurisdictional level. Any combination of inspections can be incorporated into a single home warranty inspection certificate and/or policy.
  • i) Physical condition can be determined using best in class products and services utilizing independent third party providers.
  • Title to the property can be examined and a title insurance policy can be issued in order to ensure that both the occupant and/or SPE have an unencumbered interest after the closing occurs and can be protected by insurance in the event of a defect in the title. This can be true in both a new purchase and when an existing homeowner boards the home they currently own onto the platform.
  • an ALTA owner's title insurance policy may need to be purchased.
  • an existing homeowner boarding the home they currently own an ALTA owner's title insurance policy may also needs to be purchased (e.g., only to the extent that the SPE needs to be covered given that the occupant is already on title).
  • the following diligence can be performed for each future occupant (and/or cunent applicant(s)) as part of the application process before they are approved to board onto the network and are issued an occupant token: a) An applicant credit review can be conducted by running a third party, tri-bureau credit report which can be used to determine: i) The FICO (any version of FICO can be used). The minimum can be a predetermined amount (e.g., 620) to qualify. Credit scores can be retained and accessible to pre-determined parties. A vendor can be requireed to store this information on the platform’s behalf for a pre-determined amount of time.
  • b) Income for the applicant(s) can be determined by: i) In the case of a TrueConnect applicant, the payroll census file to the extent that that is the only source of income needed for qualification. ii) By utilizing an independent, third party income verification service. c) A back end debt to income ratio can be determined for each applicant/ application by any combination of: i) Gathering data from the application(s). ii) Gathering data from the credit reports. iii) Discrepancies in liabilities between the application and/or credit reports can be reconciled by using an independent third party verification service. d) The amount of minimum retained equity can be determined by an algorithm which can use the applicants credit score, back end DTI, risk pool composition, or property specific data as inputs, or any combination thereof.
  • the minimum retained equity can be used to calculate the minimum down payment required by the applicant to close the transaction.
  • the applicant can have the ability to transfer the amount of fiat currency (e.g., USD) equal to the value of the minimum retained equity to (e.g., the settlement agent or another party) in order to proceed with the approval.
  • the applicant may need to actually transfer the money, show the funds in an account, or verify with a third party (e g., Finlocker, or a third party asset verification service).
  • a third party e g., Finlocker, or a third party asset verification service.
  • the platform can have an infrastructure which can allow impact investors to leverage the platform to assist those applicants.
  • Any requirement that the occupant must fund the minimum retained equity as described in section 6(e)(1) can be modified to allow the impact investor to assist with funding the minimum retained equity.
  • the minimum credit score requirement described in section 6(a)(i) can be waived in order to allow the impact investor to set their own minimum qualification criteria.
  • the impact investor may purchase asset tokens in an amount computed as the minimum retained equity less the amount of equity purchased by the occupant, provided that occupant must purchase not less than a pre-determined amount (e.g., % of the equity at closing) from their own funds.
  • Asset tokens purchased by an impact investor can be locked and may only be unlocked when any combination of the following occurs:
  • asset tokens can be (a) unlocked, redeemed and/or burned after distribution of the proceeds of the sale of the property in the event that the home leaves the network (e.g., the new purchaser chooses not to use the platform) or, (b) unlocked, redeemed and/or transferred to treasury after distribution of net proceeds from the sale; or
  • asset tokens can be (a) unlocked, redeemed and/or burned after distribution of the proceeds of the sale of the property in the event that the home leaves the network (e.g., the new purchaser chooses not to use the platform), and/or (b) unlocked, redeemed and/or transferred to treasury after distribution of net proceeds from the sale.
  • Impact investors asset tokens can be entitled to pro-rata distribution of net proceeds in the event of sale of the home pursuant to sections 6(b)(i)(2) and 6(b)(i)(3) subj ect to the following formula:
  • FIG. 11 is an illustration of the parties and transactions that can be required to board a home onto the platform.
  • Seller can be the individual or entity who is selling a home which may be purchased by the occupant and the SPE and boarded onto the platform.
  • the seller can receive fiat currency (e.g., USD) from the occupant pursuant to a real estate closing and can issue a warranty deed to the occupant as one of two Tenants in Common.
  • fiat currency e.g., USD
  • the seller can receive fiat currency (e.g., USD) from the SPE pursuant to a real estate closing and/or can issue a warranty deed to the SPE as one of two tenants in common.
  • Occupant can be the consumer who initiates the acquisition of the property and/or becomes the holder of the occupant token.
  • the occupant can pay fiat currency (e g. USD) to the seller pursuant to the real estate purchase transaction and/or in return can receive a warranty deed granting occupant a tenants in common interest in the home.
  • fiat currency e g. USD
  • the company that owns the platform that connects and/or manages the relationships and transactions between all of the parties can set up the SPE and/or manage the ongoing administrative functions on behalf of the other SPE owners and in return, can be allocated HPI tokens by the SPE.
  • SPE can be the providers of capital to the SPE, which can enable the SPE to purchase an interest in the home alongside the occupant.
  • the investors can purchase asset and FIPI Tokens from the SPE, which can be paid for in fiat currency (USD).
  • USD fiat currency
  • SPE can be the entity which can own the real estate interest on behalf of the investors.
  • USD fiat currency
  • SPE can sell asset tokens to investors who can purchase them in fiat currency (USD)
  • USD fiat currency
  • SPE can purchase an interest in the home from the seller in fiat currency, and in return can receive a warranty deed granting the SPE a tenants in common interest in the home.
  • the SPE can execute a tenants in common agreement and/or a triple net lease with the occupant, and in consideration, can issue the occupancy token.
  • the SPE can enter into a contract granting the rights to a proportional share of all future appreciation to the HPI pool and in consideration can be issued HPI Tokens by the HPI pool.
  • the HPI pool can be a BK remote SPE which can receive all of the future HPI gains from the SPE in exchange for issuing HPI tokens to the SPE.
  • the Risk Pool can be a BK remote SPE which can enter into a contract to advance rent and default costs to the SPE, and in consideration can be issued asset tokens by the SPE.
  • FIG. 12 is an illustration of example parties and/ or transactions that can be required to board a home onto the platform in the impact investor program.
  • Seller can be the individual or entity who is selling a home which may be purchased by the Occupant and the SPE and boarded onto the Quarter Platform.
  • the seller can receive fiat currency (e.g., USD) from the occupant pursuant to a real estate closing and/or can issue a warranty deed to the occupant as one of two tenants in common.
  • fiat currency e.g., USD
  • the seller can receive fiat currency (e.g., USD) from the SPE pursuant to a real estate closing and/or can issue a warranty deed to the SPE as one of two tenants in common.
  • Occupant can be the consumer who can initiate the acquisition of the property and/or can become the holder of the occupant token.
  • the occupant can pay fiat currency (e.g., USD) to the seller pursuant to the real estate purchase transaction and in return can receive a warranty deed granting occupant a tenant in common interest in the home.
  • fiat currency e.g., USD
  • the occupant can enter into an agreement with the impact investors and/or the SPE to:
  • Impact investor can be a capital provider to the SPE and/or benefactor of the occupant who can purchases asset tokens from the SPE in, for example, not less than the amount which is equal to the occupant’s MRE less the amount of TIC interests the occupant purchases.
  • the impact investor can enter into an agreement with the SPE and/or the Occupant with the following terms:
  • the impact investor can guarantee the performance of the occupant and/or pledge the asset tokens it owns to the SPE.
  • the impact investor can sell to the SPE a portion of their asset tokens equal to the amount of TIC interest purchased each month by the Occupant.
  • I SPE can be the entity which owns the real estate interest on behalf of the Investors.
  • the SPE can sell asset tokens to investors who can purchase them in fiat currency (e.g., USD).
  • the SPE can also sell asset tokens to impact investors who can purchase them in fiat currency (e.g., USD).
  • fiat currency e.g., USD
  • the SPE can purchase an interest in the home from the seller in fiat currency and/or in return receives a warranty deed granting a tenants in common interest in the home.
  • the SPE can execute a tenants in common agreement and/or a triple net lease with the occupant and in consideration, issues the occupancy token.
  • the SPE can enter into a contract granting the rights to a proportional share of all future appreciation to the HPI Pool and in exchange ca be issued HPI tokens by the HPI pool.
  • the SPE can enter into an agreement with the impact investors and the occupant which can have any combination of the following provisions:
  • the SPE can receive an additional payment amount each month from the occupant, paid in fiat currency (e.g., USD), a portion of which can be designated as the purchase additional TIC interests and/or the remainder can be paid to the impact investor as additional rent which can be supplemental to the proportional amount they are entitled to based on ownership of asset tokens.
  • fiat currency e.g., USD
  • Fiat currency received from occupant pursuant to section 9(f)(vi)(l) can be used to redeem asset tokens owned by the impact Investor proportionally to the TIC interests purchased by the occupant.
  • HPI pool can be a BK remote SPE which can receive all of the future HPI gains from the SPE in exchange for issuing HPI tokens to the SPE.
  • Risk Pool can be a BK remote SPE which can enter into a contract to advance rent and/or default costs to the SPE and in consideration is issued asset tokens by the SPE.
  • the following services can be provided in order to board a property and occupant onto the network: a) Consumer diligence (e.g., third party underwriter such as Evolve) i) Credit analysis (e.g., credit report and scores) ii) Capacity to repay analysis (e.g., income verification/assets if asset depletion) iii) Asset verification (e.g., down payment) iv) Know your customer (KYC)/ anti-money laundering (AML)/etc.
  • Consumer diligence e.g., third party underwriter such as Evolve
  • Credit analysis e.g., credit report and scores
  • Capacity to repay analysis e.g., income verification/assets if asset depletion
  • Asset verification e.g., down payment
  • Know your customer Know your customer (KYC)/ anti-money laundering (AML)/etc.
  • Settlement agent can provide one or more of the following services: i) Doc prep and review (e.g., TIC deed, closing statements, etc.) ii) Lien payoff calculations iii) Tax and other proration calculations iv) Notary services v) Funds escrow accounts and make disbursements vi) Document recording vii) Trailing docs d) Title Insurance Company i) Title exam and commitment issuance ii) Policy issuance e) Home warranty i) Policy or contract issuance f) Hazard Insurance i) Policy issuance g) Escrow impound account i) Setup and funding ii) Ongoing management and reporting h) Servicing i) Via Quarter Platform if not in default ii) Special servicing company if in default i) SPE Setup and governance i) Quarter can perform the necessary tasks to setup and
  • Methods and systems can be provided for performing a transaction via asset tokens and a blockchain based smart contract.
  • the methods and systems can comprise: creating a fractionalized risk pool for a single family home, the fractionalized risk pool comprising at least two token types issued using blockchain, each token type purchasable by investors; selling the at least two tokens to the investors using blockchain; and distributing payments to the investors using blockchain.
  • Multiple single family homes can be combined together for investment purposes.
  • the single family home(s) can be an occupied single family home(s).
  • the tokens can be blockchain based smart contracts.
  • the tokens can entitle token holders to certain financial nghts in a home.
  • the token types can comprise: an asset token, an HPI token or an occupancy token, or any combination thereof.
  • the asset token(s) can be issued to an investor(s).
  • the HPI token(s) can be issued to an investor(s) and sit in an HPI pool, and HPI tokens can be unlocked and transferred to the asset token holder (e.g., inventor(s) when certain conditions are met.
  • the occupany token can be provided to the occupant of the single family home. Some or all of the tokens can be resold or retraded.
  • the methods and systems provided herein can have many benefits, depending on the embodiment used. For example, home buyers who do not have the required down payment can now purchase a home and use investors to fund the down payment. Homeowners who don’t have the equity and/or MRE to refinance can use investors to help facilitate refinancing. Investors who purchase the tokens can invest in the single family home market in a way that may not have been previously available. New asset classes can be made available to investors that were not previously available. Rent control issues may be avoided and/or mitigated. Many types of risk mitigation can be made available (e.g., because of the fractionalization, risk assessment can also be fractionalized). Homeowners can also use the system to access equity in their home (e.g., in incremental amounts).
  • the methods and systems can also comprise: receiving a transaction request for an asset token; checking inventory of an asset associated with the asset token; performing a transaction associated with the transaction request when enough inventory is available, wherein the transaction includes transfer of asset tokens between entities; and recording the transaction in a blockchain based smart contract.
  • This can allow automation of matching requests for those who wish are or obligated to sell with those who wish or are obligated to acquire the asset token.
  • This can also allow automated and/or enforceable compliance with contractual obligations.
  • This can create a secure and/or immutable record of each of the transactions, thus creating a chain of title which is difficult to contest.
  • This can enable use of an algorithm to determine which tokens are included in the transaction requisition and which ones to exclude. For example, FIFO (first in first out), pro-rata, etc.
  • Transfer of asset tokens can be done by an entity to change a proportion of the asset owned by the entity. This can allow for automation of legacy transfer processes by removing many of the manual, labor-intensive, and offline steps, and therefore can do at least one of: lower costs as a result of simplifying the transfer processes, speed up the time to consummate a transfer; simplify any post-transfer accounting and audit requirements for a transfer, and enable rapid reallocation of benefits derived from ownership.
  • the asset tokens can be based on real property. This can enable creation of a dynamic marketplace for real estate which can do at least one of: create liquidity in previously illiquid assets; reduce transaction costs associated with real estate transfers; provide the opportunity to democratize investment in real estate assets by lowering the minimum investment threshold, thus allowing many more investors to participate; and opens the opportunity to a global audience. This can also help create opportunities for financial engineering constructs which may be unavailable with standard real estate transactions, thereby lowering to or reallocating the costs of capital to the participants.
  • the transaction can be performed between an occupant of the real property and an investor of real property. This can occur indirectly by using fiat currency paid by the occupant to the issuing entity (SPE) in exchange for TIC interests.
  • SPE issuing entity
  • the SPE can then uses the fiat currency to purchase (e.g., redeem) asset tokens from the investors, deactivates them and then transfer them to treasury. This can allow for transfer of TIC interests between an unaccredited Occupant and holders of the Asset Token who will initially be accredited investors (if US based).
  • the transaction can include rent payment by the occupant to the investor by transferring the asset tokens such that the rent payment is based on a proportion of asset tokens owned by the investor.
  • Each investor can be entitled to a pro-rata amount of the rent paid by the occupant based on the proportion of the asset tokens they own.
  • This can enable periodic payments or the proportional rent to the owner of asset tokens which could occur in fiat currency or other cryptocurrencies such as a stablecoin, Bitcion, etc.
  • This can also facilitate payments by tracking ownership of asset tokens and recording such payments on an immutable blockchain ledger.
  • This can also enables creation of multiple cash flow waterfalls based on ownership of asset token ownership.
  • This can also enable creation of risk mitigation strategies by allocating asset tokens to funds and/or pools specifically designed for risk mitigation purposes.
  • the rent payment can change based on a change in the proportion of TIC owned by the occupant. This can help enable a dynamic rent calculations to occur. Unlike traditional real estate financing methods where payments tend to be fixed regardless of prepayments or current balance of the obligation, basing the rent payment on the proportional amount of the TIC interests owned by the occupant can help enable real time payment changes to occur. For example, a homeowner paying rent at a 4.39% annualized rate to the investors could purchase $1,000 of additional equity in their home, immediately changing the proportion of their TIC interest, and see their monthly payment instantly fall by $3.66 per month. From the Occupants perspective, this can provide an immediate return on their investment as their rent payments are reduced in real time as they increase the proportion of the TIC they own. On the flip side, an investor can also realize an immediate return should they increase their proportional holdings in the TIC via Asset Token purchases. In both examples, the reverse is also true.
  • the transaction can include a change in TIC between the occupant and the investor.
  • This can help enable investors to hold positions in owner occupied single family residential real estate for the first time ever.
  • This asset class may not currently exist as a current method for an investor to gain access to the single family residential real estate market is to hold positions directly or indirectly in rental properties which can require property management and other operational overhead to manage the non-owner occupied tenancies.
  • This can enables the occupant to access equity in their home above the minimum required equity threshold in real time and at an exceptionally low cost. This can eliminate the need for refinancing a home by converting home ownership into cash.
  • the owner/manager can use a server and/or a mobile application.
  • a server and/or a mobile application For example, for the mobile application in FIG. 13, an Occupant can use this or a similar system on a desktop computer, etc. to check their ownership position, sell equity on demand and transer the fiat current (USD) into their account within seconds.
  • USD fiat current
  • the transaction can also include transfer of asset tokens between multiple investors.
  • This can enable the development of a secondary market for fractional real estate ownership. This can create the opportunity for both price discovery in ways which has not been available before.
  • Current legacy fractional ownership constructs such as commercial real estate syndicates or REITs, may have typically traded at a substantial discount to the value of the assets they own due to their illiquidity' and lack of a robust secondary market.
  • This can allow for the democratization of real estate investing by enabling transactions between accredited investors who initially purchased the Asset Tokens from the issuer and nonaccredited investors, who can later purchase the Asset Tokens after SEC mandated holding periods toll.
  • the Asset Token can have a static nominal (e.g., face) value and may not change in value to the upside (downside can be a different story as prices can fall).
  • the appreciation component can be stripped from the Asset Token such that any value derived from appreciation of the home can be contractually transferred to the HPI Asset Pool (e.g., some form of BK remote entity) which can be the issuer of the HPI Tokens. For example, a $10 investment in an Asset Token can return $10 to the holder from the proceeds of sale at the time the underlying home is sold.
  • the HPI asset pool can represent the appreciation of all the homes in the group of homes.
  • the HPI Asset Pool can aggregate the appreciation of all of the appreciation for all homes on the network into one location which can enable issuance of HPI Tokens which can be used in various financial engineering constructs.
  • HPI asset token can be issued that can be guaranteed by the appreciation of all the homes in the group of homes.
  • the act of issuing HPI Tokens can unlock unrealized gains which may otherwise only be accessible upon either sale of the home or by obtaining a cash out refinance mortgage. This can provide a floor to the value of the HPI tokens based on the value of the underlying home appreciation rights transferred to the pool.
  • HPA or HPD There can also be a compounding effect whereas there may be future HPA or HPD which can occur on the value of the assets already within the pool. Given that there has never been a true HPI index backed by actual homes, this can create a unique opportunity to use HPI tokens to speculate on the future movement of the housing market and to further create additional financial instruments and/or derivatives based on the HPI token.
  • a minimum retained equity can be determined comprising a minimum amount of equity a home occupant must retain based on pre-defined underwriting criteria.
  • Computing the minimum retained equity can provide the basis to manage risk through the use of asset token holdings (by the occupant, the risk pool, and/or the impact investor) and can be a departure to the way a traditional mortgage has operated which can be more inclined to increase cashflow through the use of higher interest rates.
  • Having “skin in the game:; can be a predictor of future consumer performance and the platform has designed the MRE model to reflect that. It further servers as one of the core components from which the occupant’s ability to transfer ownership is built upon.
  • the minimum retained equity can be a dynamic number which changes based on a current property profile and a current occupant profile and is used to manage default risks.
  • MRE as a risk mitigation tool can be helpful in that when combined with a fractional ownership structure, the need to subsidize defaulting consumers by creating extra cash flow via higher interest rates from the entire cohort of similarly situated consumer can be eliminated and can be replaced with by use of a combination of a risk pool of asset tokens contributed by every home on the platform and requiring each homeowner to retain a minimum amount of TIC equity in the property, both of which can be drawn from in the even to occupant non-performance.
  • each homeowner can bear the risk of their own default as they will lose their equity (just like a mortgage) but aren’t required to pay monies in the form of higher payments which they will not get back if they do not default.
  • This can enable a much more dynamic risk mitigation strategy on both an individual consumer basis but also within the entire risk pool.
  • This can also enable dynamic adjustments in underwriting criteria base on the overall health of the risk pool such that new applications can be reviewed and MRE calculated on the basis of the risk pool as well as individual consumer stats.
  • the ability to buy or sell equity in real time can be managed, as the risk profile of the consumer can change the amount of excess equity available to transfer and/or convey to cash (defined as occupant owned equity in excess of MRE) can also change.
  • Ownership of an HPI asset for a property can be transferred to an HPI asset pool by the asset holder in exchange for an HPI asset token.
  • the ability to separate the HPI from the underlying asset can allow for unrealized gains to be carried forward and made liquid in real time.
  • HPI tokens can be issued contemporaneously with asset tokens when a home is initially boarded onto a platform for a group of homes. This can enable the holding periods required by US (and potentially other jurisdictions) securities laws to run in parallel with the periods during which home price appreciation can be measured (e.g., HPI Intervals) such that when the tokens are unlocked at the end of the period the restrictions on transfer can be removed and the tokens can be freely transferred on a token exchange to both accredited and non-accredited investors.
  • the tolling of the holding period can democratize the investments as it enables nonaccredited investors to acquire and hold the HPI Tokens. This can also reduce risk for asset token holders in that they are able to immediately transfer (e.g., sell) HPI tokens in order to reduce their exposure to home price fluctuations. Without the tolling of the holding period, they could be exposed to a 12 month holding period.
  • HPI tokens issued with asset tokens can be locked when issued and remain locked unless they are unlocked under pre-defined conditions. This can reduce or eliminate the need to conduct subsequent token offerings to the extent that HPI Tokens can be issued in sufficient quantities to fulfill the obligations to pay the asset token holder for future HPA gains.
  • Locked HPI Tokens may not be separable from asset tokens that transfer after issuance. This can enable transfer of asset tokens along with HPI Tokens which may be the rights to future HPA gains in a single transaction. This can also help toll the holding period by eliminating the need to issue new HPI tokens each time the asset token is transferred.
  • An updated valuation can be done for each home in a group of homes on the platform in order to calculate the change in value of each home during a current period. This can enable the calculation of the value of the underlying appreciation assets transferred to the HPI pool. This can also enable the immediate pricing and transfer of TIC interests between the occupant and the investors. This can also enable creation of a secondary market for asset tokens where frequent valuations may assist with price discovery.
  • the home price appreciation (HP A) or home price depreciation (HPD) can be calculated for the current period, wherein the HPA or HPD can be the difference between the valuation determined at the end of a previous period and the valuation determined at the end of the cunent period.
  • HPA or HPD can be the difference between the valuation determined at the end of a previous period and the valuation determined at the end of the cunent period.
  • HPA or HPD can be the difference between the valuation determined at the end of a previous period and the valuation determined at the end of the cunent period.
  • HPA or HPD can be the difference between the valuation determined at the end of a previous period and the valuation determined at the end of the cunent period.
  • a boarding value and/or transfer value can be substituted for a previous period difference: when a home was boarded onto the platform during the current period or within a pre-defined amount of time preceding the current period; or when an occupancy token was transferred to a new occupant during the current period or within the pre-defined amount of time preceding the current period.
  • This can enables methods to avoid double counting appreciation when issuing HPI tokens or when asset tokens are transferred.
  • This can also enables automated tracking of investor basis and nominal value of the asset tokens and adjustments in nominal values of asset tokens in times of falling home prices This can allow for investors who hold asset rokens to have their HPI token allocation tracked and/or calculated differently based on when they were purchased and how home prices have moved since doing the above.
  • Pro-rata adjustments can be made, for example, if the first period is short (e.g., a predetermined time).
  • a reset can be done when secondary transfers occur after a value decline.
  • the nominal value of the asset token may be reset so that the holder of the asset token does not receive a double payout for HPA.
  • An example would be a home in which investor holdings are valued at 100K when the asset tokens are issued and subsequently rises to 15 OK.
  • HPI tokens can be unlocked periodically based on the 5 OK rise in value.
  • the asset token owner who did not sell his or her asset tokens during this period may not be entitled to unlock additional HPI tokens based on the rise in value from 120K to 140K.
  • a high-water mark can be established such that no HPI tokens can be unlocked until the valuation surpasses the high-water mark of 150K.
  • an asset token holder decides to sell their tokens prior to the high-water mark being reached after a decline (e.g., let’s assume they sell at 100K), they may have the nominal value of the asset token reset such that they only receive net proceeds equal to the lower valuation of in this case 100K.
  • the new ow ner of the Asset Tokens may begin at 100K and therefore may be entitled to unlock HPI tokens for any increase above 100K.
  • the HPI can be unlocked when the HPA for the current period is >0 and satisfies the following conditions: the number of HPI tokens unlocked for each asset token is computed by dividing the total HPA by the market price of the HPI tokens; and/or a computed number of HPI tokens unlocked for each asset token is multiplied by a predetermined amount (e.g., .9) and divided by the total number of asset tokens held by investors.
  • a predetermined amount e.g., .9
  • Minimum retained equity can be determined using: an applicant’s credit score, back end DTI, risk pool composition, or property specific data as inputs, or any combination thereof.
  • the minimum retained equity can be used to calculate a minimum down payment required by an applicant who wishes to be an occupant in order to close on the home.
  • Today’s financial markets e.g., the real estate financing market
  • interest rates can be used as a first line tool for risk management.
  • the net result can be that those who can least afford it typically pay the most.
  • MRE minimum retained equity
  • Asset tokens purchased by an impact investor can be locked until: the occupant purchases equity from the Impact Investor, in which case a corresponding number of asset tokens shall be unlocked, redeemed and transferred to treasury; and/or the occupant chooses to exercises their right to sell the property, in which case the asset tokens shall be: unlocked, redeemed and burned after distribution of the proceeds of the sale of the property in the event that the home leaves the network; or unlocked, redeemed and transferred to treasury after distribution of net proceeds from the sale; and/or the occupant is in default and the home is sold in which case the asset tokens shall be: unlocked, redeemed and burned after distribution of the proceeds of the sale of the property in the event that the home leaves the network; or unlocked, redeemed and transferred to treasury after distribution of net proceeds from the sale.
  • the entire impact investor program can be plug and play, meaning that it fits within the overall design of the platform and comports with the management of asset tokens.
  • the impact investor can provide the required capital to supplement the capital the occupant can provide to meet the MRE requirements to become a homeowner.
  • asset investment opportunities with and without an impact investor can be homogenized sufficiently that from the perspective of the nonimpact investors perspective so they can be treated exactly the same from a risk perspective. They can be governed by smart contracts which can enable everything described above to be automated. Further, smart contracts can be customized to meet the specific needs of impact investors allowing them to better focus on serving their clients.
  • the owner/manager can provide the turn key infrastructure for socially conscious capital to plug into.
  • Impact investor’s asset tokens can be entitled to pro-rata distribution of net proceeds in the event of sale of the home under at least one of the following circumstances: a) asset tokens held by impact investors are entitled to their pro-rata share of the rent plus 100% of the enhanced rent paid by the occupant; b) a portion of the enhanced rent payment shall be used to purchase additional TIC interests in the home from the impact investor’s holdings in the SPE; c) upon purchase of TIC interests equal to the entirety of the impact investors holdings in the SPE, enhanced rent payment obligations of the occupant shall terminate; d) impact investors asset tokens are entitled to pro-rata distribution of net proceeds in the event of sale of the home; e) asset tokens held by impact investors are entitled to their pro-rata share of the rent plus 100% of the enhanced rent paid by the occupant; f) a portion of the enhanced rent payment shall be used to purchase additional TIC interests in the home from the impact investor’s holdings in the SPE; and g) upon purchase of TIC interests equal to the entirety of the impact investors holding
  • the ability to manage asset tokens can provide the ability to merge occupant and impact investor holdings which can be the cornerstone to homogenizing the overall investment opportunity sufficient to keep additional risk based pricing at bay.
  • the ability to reduce costs through smart contract automation can help provide a benefit to the occupant.
  • an income interruption buffer can help take advantage of the concept of minimum retained equity in order to safeguard residents in turbulent times. Having a savings buffer (e.g., several months’ worth of housing costs in a period of significant interruptions to one’s income) can cut homeowner default rates in half.
  • the income interruption buffer of rental payments can be built into occupants’ minimum retained equity requirement and can allow them to apply and draw down those funds to make rental payments in the case of a qualifying life event (e g., job loss, divorce, illness). This income intermption buffer can help empower homeowners.
  • homeowners assistance programs can be used to help existing homeowners who do not meet MRE requirements to board their existing home on the Quarter Platform.
  • a homeowner assistance program can operate in a similar manner to a down payment assistance program, with an investor(s) purchasing equity in an amount necessary to bring the sum of their holdings and the homeowners equity up to the MRE.
  • the arbitrage between the market rent and lower Quarter rent can be used to enable the homeowner to purchase portions of their home with each monthly payment until they have purchases the entirety of the equity from the Impact Investor.
  • the consumer can change the inputs for the homeowner assistance program by modifying their credit score ranges, home profile, or other variables, or any combination thereof, to create and view various scenarios with different homeowner assistance amounts required.
  • methods and systems can comprise: creating, using a platform, a fractionalized risk pool and a fractionalized Home Pricing Index (HPI) pool for a real estate property, the fractionalized risk pool and the fractionalized HPI pool can comprise asset tokens, HPI tokens, and an occupancy token, the asset tokens, the HPI tokens, and the occupancy token issued using blockchain; transmitting, by a first computing device of a first computing system, a first network function request comprising a sale of an asset token to an asset token holder, wherein the asset token can comprise a blockchain based smart contract to a decentralized network; and transmitting, by a second computing device of a second computing system, a second network function request to the decentralized network, the second network function request can comprise a sale of an HPI token to an HPI token holder, wherein the HPI token can comprise a blockchain based smart contract distributing payments to the asset token holder and the HPI token holder using blockchain; wherein the occupancy token can entitle an occupant of the real
  • Occupant to occupant transfer can be supported using the occupancy token.
  • An HPI asset pool can be held in an account held by a fund controlled by the platform.
  • a display can be used to display information comprising: payment information, MRE information, cash out information, or any combination thereof.
  • a display can be used to display properties for sale which occupants can afford. Displayed information can be based on information comprising: self-reported data, data looked up with third party data sources using property address information, or both.
  • An occupant applicant can view properties which they are qualified to purchase.
  • the properties can comprise MLS properties.
  • the properties can comprise non- MLS properties.
  • the non-MLS properties can comprise partners of the platform.
  • the non- MLS properties comprise properties entered by the occupant applicant.
  • HPI tokens can be managed.
  • HPI token management can comprise tracking property price appreciation, or managing HPI token distributions, or both.
  • HPI token management can comprise updating valuations for all boarded properties.
  • Suspect data can be deleted.
  • Suspect data can comprise data that is outside of a predetermined amount of expected ranges.
  • HPI gains and/or HPI Token allocations can be determined at HPI Intervals.
  • Applicant An individual who can submit an application to utilize the Platform (e.g., referred to as the Quarter Platform herein, although any other term or name may be used instead to describe or name the Platform ) to fund their purchase or refinance of real estate interests in the House, but who has not received the Occupancy Token.
  • the Platform e.g., referred to as the Quarter Platform herein, although any other term or name may be used instead to describe or name the Platform
  • Appreciation Value' Can be the appreciation value for a particular House (whether realized upon the sale of a particular House or unrealized appreciation during the Homeowner’s holding of the Occupancy Token).
  • the Appreciation Value can be calculated by subtracting the House’s Current Valuation when the House can be boarded to Quarter Platform from the House’s Current Valuation at a given time following the initial boarding. If the Appreciation Value is a negative number, the Appreciation Value can be deemed to be zero.
  • Base Rent Can be the amount paid by the Homeowner per month to the SPE for a given House in consideration of Homeowner’s right to occupy the House, which amount can be determined by Quarter.
  • Burn'. Bum or Burning a token can mean that the token can be transferred to an address that can be a “blackhole” - one that may not be owned by any entity and for which determining or guessing the applicable private key may be effectively impossible using current computers based on known mathematical principles. This can effectively destroy the token by making it unavailable for future use and can decrease the total number of tokens available from that point forward.
  • Current Enhanced Valuation'. Can be the valuation of record based on using an enhanced valuation methodology (other than AVM) such as a broker price opinion (BPO), and/or a full appraisal and/or other valuation methodology adopted by Quarter.
  • an enhanced valuation methodology other than AVM
  • BPO broker price opinion
  • Quarter a full appraisal and/or other valuation methodology adopted by Quarter.
  • AVM Automated Valuation Model
  • Cash Funding Pooh Can be a cash escrow bank account held by the Fund to hold the purchase money paid by the Investors for the Asset Tokens sold. Each Investor can have a separate ledger.
  • Digital Wallets'. Can be the form in which a public key can be presented and recorded on a blockchain. Wallet addresses can therefore be used to assign the ownership of Tokens on the Quarter Platform.
  • Enhanced Rent'. Can be the additional amount that can be paid by the Homeowner to the SPE, for the benefit of an Impact Investor only, which amount can be calculated as the fair market rent in the submarket of the jurisdiction where the House is located, as determined by Quarter, minus elements (e.g., as described in the Real Estate Agreement) such as, but not limited to, the Base Rent for a given House.
  • Excess Equity Can be the amount of unencumbered equity held by the Homeowner which can be in excess of the Homeowner’s Minimum Retained Equity.
  • the Home Appreciation Right Can be the exposure and/or entitlement to the pro-rata share of the aggregate Appreciation Value of Houses boarded to Quarter Platform at a given time.
  • the Home Appreciation Right may not be linked to any specific SPE (thus, specific House).
  • Homeowner Can be an individual who is admitted to use the Quarter Platform, initiates the acquisition or refinance of the House, purchases the Real Estate Interests in the House, or becomes the holder of the Occupancy Token, who has the sole right to live in the House, or any combination thereof.
  • HPI Home Price Index
  • House'. Can be residential real property permitted to be boarded to the Quarter Platform.
  • HPI Asset Pooh Can be a pool of home equity which can comprise the aggregate Appreciation Value of all of the Houses on the Quarter Platform, which can be sitting in an escrow account held by the Fund.
  • HPI Realization Percentage' The amount, which can be stated as a percentage between 0 and 100, which can be applied to the home appreciation for the current period in order to calculate the number of HPI Tokens to be Unlocked.
  • HPI Token Escrow Pool Can be a Digital Wallet controlled by Quarter to hold the issued HPI Tokens that are not Unlocked. Impact Investor. A person or entity who can assist the Applicant in meeting the Minimum Retained Equity requirements to qualify to become a Homeowner and/or in paying a portion of the closing costs in connection with the sale of the entire House. Impact Investor can be a capital provider who can purchase Asset Tokens from the Fund in not less than the amount which is equal to (i) the Homeowner’s MRE minus (ii) the purchase money of the Real Estate Interests paid by the Homeowner.
  • Minimum Retained Equity Can be the minimum equity a Homeowner must retain based on current underwriting criteria imposed by Quarter, as may be amended from time to time. This can be a dynamic number which can change based on the value of the House occupied by the Homeowner and/or Homeowner profiles at a given moment in time and can be used to manage default risks.
  • the amount of Minimum Retained Equity can be determined by a proprietary algorithm, which can use the Homeowner’s credit score, back-end debt to income ratio, Quarter Risk Pool composition, or property specific data, or any combination thereof, as inputs at a given moment in time.
  • the Minimum Retained Equity can also be used to calculate the minimum purchase price required to be paid by the Homeowner for their Real Estate Interests in the House.
  • Occupancy Token' Can be the token issued to a Homeowner by an SPE upon full execution of the Real Estate Agreement, which can evidence Homeowner’s sole right to occupy the House. Each House may only have one Occupancy Token. Occupancy Tokens may or may not be offered for sale by either the Fund or the SPE.
  • Original Asset Token Nominal Value' Can be the nominal value, expressed in Fiat Currency (USD), of an Asset Token upon issuance.
  • the Original Asset Token Nominal Value can initially be US$1 or any other designated value.
  • Payments'. Can be amounts paid by the Homeowner to the SPE, which amounts can comprise: (i) Base Rent, (ii) Base Rent Servicing Fee, which amount can equal a certain percentage (e.g., 1%) of the Base Rent, as the Platform Transaction Fees payable to Quarter, (hi) Enhanced Rent (e.g., with respect to the Impact Investor only), (iv) Home Warranty premium and/or other insurance premiums as required to be paid by the Homeowner under the Real Estate Agreement, (v) some or all repayment of fees or charges advanced by Quarter Risk Pool pursuant to the Real Estate Agreement, (vi) monthly amounts for the future real estate sales commissions, which amounts can be held in the Quarter Real Estate Commission Fund, or (vii) Property Escrowed Amounts (as defined below), if any, together with all accrued late fees for the foregoing (i)-(vii), or any combination of (i)-(vii).
  • Quarter Platform' Can be the virtual two-sided network and infrastructure developed by Quarter, which can manage the interactions between all parties involved in the purchase, refinance, management, or sale, or any combination thereof, of residential real estate.
  • Quarter Platform Homeowner Dashboard Can be the user interface that can be accessible by Homeowners, Investors, or Quarter, or any combination thereof, and that can be linked to the Quarter Platform.
  • Quarter Preferred Agent Provider' Can be a Real Estate Agent and/or Brokerage with whom the Quarter Platform can negotiate a contract to provide home listing and/or sales service.
  • Quarter Real Estate Commission Fund' Can be a reserve fund established by the Quarter Platform to pay future real estate sales commissions on behalf of Homeowners. This can be funded monthly from the fees collected by Quarter as payments made by the Homeowners.
  • Real Estate Agreement Can be an Agreement signed by the Homeowner and/or SPE to memorialize their agreement as to the ownership and/or management of the House.
  • a Form Real Estate Agreement can be provided to Applicants for review and can be signed upon the closing of the purchase of the House.
  • Real Estate Interests' Can be real estate interests in the House, expressed in a percentage form.
  • Unlocked or Unlock' Can be applied to the HPI Tokens (and only to these, in some embodiments), and can occur when both “time lock” and/or the “transfer lock” of a particular HPI Token are removed and such HPI Tokens are released from the HPI Token Escrow Pool by the Fund to Investors’ Digital Wallets.
  • Chart 1 in FIGURE 23 illustrates an example structure of the platform. Parties to the structure can include the following: 1. The Fund or the Holding Company: Can be the entity to issue both Asset Tokens and HPI Tokens to raise capital from Investors in accordance with the offering.
  • Quarter Can be an entity that owns the Quarter Platform and can be the manager (and in some embodiments the sole manager) of the Fund, which can connect and/or manages the relationships and/or transactions among all of the parties to the Quarter Platform.
  • Quarter can set up the SPE and can manage the ongoing administrative functions of the SPE on behalf of the Fund and, in return, can issue HPI Tokens by the Fund.
  • Quarter Risk Pool Can be an entity that can be partially or wholly owned by the Fund, which can enter into a Real Estate Agreement with the SPE to advance funds to cure a Homeowner’s default pursuant to the Real Estate Agreement and in consideration can be issued Asset Tokens by the Fund.
  • the Asset Tokens to be issued to Quarter Risk Pool consist of a predefined percentage (e.g., 1%) of the total Asset Tokens linked to each SPE (thus each House) on the Quarter Platform.
  • SPE Can be a special purpose entity wholly owned by the Fund, which can be set up to purchase the Real Estate Interests in a particular House. Both Homeowner and/or SPE can own divided and/or undivided Real Estate Interests in a particular House. The rights and/or obligations of the SPE and/or Homeowner can be documented via the Real Estate Agreement.
  • Home Seller Can be an individual or entity who can be selling a House which can be purchased by the Homeowner and/or SPE and/or boarded onto the Quarter Platform. Home Seller may have no affiliation or ongoing relationship with Quarter and/or any of the other parties to the Quarter Platform after the closing of the sale of the House.
  • Homeowner and/or Homebuyer Can be an individual who can be admitted to use the Quarter Platform, can initiate the acquisition or refinance of the House, can purchase the Real Estate Interests in the House, or can become the holder of the Occupancy Token, or any combination thereof.
  • HPI Tokens can be issued to the Asset Token holders at the time the Asset Tokens are issued to the Asset Token holders in connection with the offering when the holders pay the purchase price in full for the Asset Tokens in accordance with the Token purchase agreement, except that a certain amount of HPI Tokens (e.g., 5% of the total HPI Tokens issued by the Fund to the Investors) can be issued to Quarter in consideration of Quarter's management services. Asset Tokens and/or HPI Tokens can represent Investors’ economic interests in the Fund.
  • the Fund can issue HPI Tokens which can be included in the sale of Asset Tokens.
  • HPI Tokens can be fungible tokens issued by the Fund.
  • HPI Tokens can be backed by a pool of equity generated by appreciation of every House boarded to the Quarter Platform.
  • HPI Tokens can provide their holders the right to receive an interest in the home appreciation from all Houses on the Quarter Platform, which value may not be linked to any specific SPE or House.
  • Asset Tokens can provide their holders the right to receive certain distributions from the Fund, which distributions may be linked to the SPEs (thus, specific Houses) designated by the Manager and/or include pro-rata payment from the Homeowners and/or the sales proceeds up to an amount of the original valuation of the House when the House is boarded to Quarter Platform (but may not include the Appreciation Value, which is assigned to the Fund by the SPE and may be linked to the HPI Tokens).
  • the Fund issues the HPI tokens to the Asset Token holders, and when the Asset Token holders transfer the HPI Tokens, they can be simply transferring the Home Appreciation Right. The amount of the HPI Tokens a particular Investor can receive and transfer upon the Unlock of HPI Tokens.
  • FIGURE 24 shows an example overview of Quarter’s use of smart contracts (with the Homeowner being the Occupant reflected in the Figure).
  • a SPE can be set up by the Fund to purchase a House with the Occupant.
  • the Fund can be the sole member of the SPE.
  • a smart contract can be created by the Fund which can issue Asset Tokens and/or rights to distributions from the specific House owned by the SPE.
  • the Asset Tokens can be distributed to the Investors and also to the Quarter Risk Pool.
  • a smart contract can be created between the Homeowner and the SPE, which can automate certain provisions under the Real Estate Agreement, including, but not limited to the Payments.
  • a smart contract can be created by the SPE which can issue the Occupancy Token to the Homeowner.
  • the Occupancy Token can evidence the Homeowner’s right to occupy the House.
  • a smart contract can be created by the Fund, which can contain an agreement to assign the Home Appreciation Right to the Fund and in exchange, the Fund can issue HPI Tokens which can be included in the sale of Asset Tokens.
  • the HPI Tokens can represent the Home Appreciation Right and can be distributed to the Investors and/or also to Quarter and/or Quarter Risk Pool.
  • Digital Wallets for Investors can be maintained and/or adjusted in accordance with applicable regulations and/or taxable income and/or loss can be apportioned appropriately. As each SPE could potentially have different Investors, Investors can be paid different returns and/or cash flows through the Fund. Accordingly, proceeds can be tracked on an SPE by SPE basis per the Investor’s proportionate share in a particular SPE, while flowing through one entity - the Fund.
  • the Fund can allocate the Asset Tokens based on the total number of Asset Tokens to be issued and/or the Investor’s total investment in proportion to the total investment to be made by all Investors.
  • the Fund can issue a predetermined amount of HPI Tokens per Asset Token.
  • the number of Asset Tokens to be received by Investor #1 can be 100,000, which is calculated as follows:
  • FIGURE 25 shows an example structure of the issuance of HPI Tokens and Asset Tokens.
  • Asset Tokens can be issued to an Investor and/or can be delivered to the Investor’s Digital Wallet when the Investor pays the purchase price in full for the Asset Tokens. Investors’ purchase money for the Asset Tokens can be sitting in the Cash Funding Pool. This can be because at the time of the purchase, the Asset Tokens may not be linked to any specific SPEs (e.g., thus specific homes) (and accordingly the Asset Tokens and/or HPI Tokens may need to be locked initially).
  • the Asset Tokens can be initially subject to a “transfer lock” and/or a “time lock.”
  • the Asset Tokens can be subject to a “transfer lock.”
  • a “transfer lock” can be a temporary restriction that prevents the Asset Tokens from being transferred by Investors for one (1) year after the date when the Asset Tokens are delivered to Investors’ Digital Wallets.
  • a “time lock” can be a temporary general restriction that prevents an Asset Token from being used for any purpose on the Quarter Platform, including but not limited to the right to receive the distributions from the Fund. This time lock can delay the full release of the Asset Tokens that are issued and until released from this time lock, the Asset Tokens may not be able to be Burned and/or transferred and/or otherwise used on the Quarter Platform.
  • the Asset Tokens can be released from the “time lock” upon the closing of the purchase of the House, at which time certain amounts of the Asset Tokens can be linked to the SPE and/or specific House contained therein and can be released from the “time lock” once all or a portion of Investors’ Asset Tokens are linked to that specific SPE and that specific House.
  • the Asset Tokens that are released from the “time lock” may be still subject to the “transfer lock.”
  • an SPE When a House is boarded to the Quarter Platform, an SPE can be set up with the Homeowner to purchase the House.
  • Investors’ Asset Tokens are linked to a particular SPE, Quarter can release cash from the Cash Funding Pool to the Fund for the Fund to provide funds to the SPE to purchase the TIC Interests, and in return, Investor’s Asset Tokens (e.g., in proportion to the invested amount in the House) can be colored to show the link to the particular SPE and/or the “time lock” for the colored Asset Tokens can be removed after the closing of the purchase of the House.
  • the number of the Asset Tokens to be released from the “time lock” can be based on the purchase price to be paid by the SPE for its TIC Interests in a specific House and Investor’s investment, for example in proportion to the total purchase price paid by the SPE, as well as the price per Asset Token, after deduction of the Boarding Fee.
  • the Quarter Risk Pool will advance payments and expenses to the SPE from its cash account (as described in the section captioned “Major Terms and Conditions of the Real Estate Agreement”) and in consideration, the Quarter Risk Pool will be issued certain amounts of Asset Tokens by the Fund in order to provide cash flow and capital for servicer advances.
  • the Quarter Risk Pool is for the benefit of the Investors who are not Impact Investors.
  • the Fund can first deliver the HPI Tokens to HPI Token Escrow Pool in escrow for the benefit of Investors and Quarter (see Chart 1).
  • the HPI Token Escrow Pool can serve as an escrow account for the purposes of escrowing HPI Tokens issued by the Fund to the Investors and/or Quarter.
  • the HPI Tokens can initially be subject to a “transfer lock” and a “time lock” when sitting in the HPI Token Escrow Pool.
  • a “transfer lock” can be placed on the HPI Tokens to restrict the transfer of the HPI Tokens, for purposes of compliance with the 1-year holding period because HPI Tokens can be “restricted securities” as the term is defined under the Securities Act. Similar to the “time lock” added to the Asset Tokens, the “time lock” added to the HPI Tokens can be a temporary general restriction that prevents an HPI Token from being used for any purpose on the Quarter Platform, such that the HPI Token may not be able to be Burned and/or transferred and/or have any right to receive the distributions from the Fund.
  • This “time lock” can delay the full release of the HPI Tokens that are issued and until released from this “time lock,” the HPI Tokens may not be able to be Burned, or transferred and/or otherwise used on the Quarter Platform.
  • HPI Tokens issued to the Asset Token holders can be Unlocked and/or delivered to Investors’ and/or Quarter’s Digital Wallets, and/or the number of HPI Tokens Unlocked for each Asset Token for a particular SPE can be based on future appreciation of the specific house invested in by the SPE to which the Asset Tokens can be linked.
  • HPI Tokens can be fungible tokens and may not be linked to any particular SPE. Instead, the value of the HPI Tokens can depend on the Home Appreciation Rights.
  • the holders of Asset Tokens can have the following rights to distributions:
  • Each Investor’s Proportionate Share can be based on such Investor’s indirect proportional investment in a particular SPE, after setting aside an amount (e.g., 1%) of the total investment for the benefit of Quarter Risk Pool pursuant to the following formula:
  • (b) Can be Base Rent and/or the late fees for the Base Rent received from the SPE paid by the Homeowner unless the underlying payment that generated the late fees was advanced by the Quarter Risk Pool, in which case the late fees can be distributed to the Quarter Risk Pool.
  • Holders of Asset Tokens can have the right to receive the sales proceeds upon the sale of the House owned by the SPE, up to an amount of the Current Valuation of the House when the House is boarded to Quarter Platform (but, in some embodiments, not including the right to receive the Appreciation Value).
  • Asset Token holders (other than the Impact Investors) can receive uninterrupted Base Rent in the event of a Homeowner’s default pursuant to the terms of the Real Estate Agreement, to the extent that the assets held in the Quarter Risk Pool are sufficient to address the Homeowner’s default.
  • the Quarter Platform can notify some or all Investors (not just the holders of the Asset Tokens that are linked to the SPE) of the pending transaction, notify them of the amount of Asset Tokens that can be included in the transaction and provide them with a time period (e.g., five (5) business days) to state if they intend to purchase those Asset Tokens linked to the SPE that are subject to purchase and the amount of the Asset Tokens they intend to purchase.
  • a time period e.g., five (5) business days
  • the Quarter Platform can determine which Investor’s request shall be satisfied, on a first come, first served basis and/or on a rolling basis, up to the total amount of Asset Tokens subject to the purchase. Quarter can then remove the “time lock” from such subscribed Asset Tokens sitting in the subscribed Investors’ Digital Wallet, and/or can release the respective purchase money from the respective subscribed Investor’s account sitting in the Cash Funding Pool to the Homeowner.
  • the Quarter Platform can notify all holders of the Asset Tokens that may be linked to the SPE of the pending transaction, and/or can notify them of the pro-rata amount of their holdings that shall be included in the transaction. Investors whose Asset Tokens are linked to the SPE can have the obligation to sell their Asset Tokens in proportion to their existing percentages of the total Asset Tokens linked to the SPE. The Asset Tokens sold by the Investors can then be redeemed by the Fund and Burned.
  • HPI Tokens can represent a pool of equity generated by appreciation of some or all Houses boarded to the Quarter Platform and/or can provide their holders the Home Appreciation Right from some or all Houses on the Quarter Platform.
  • the amount of HPI Tokens attributable to holders of Asset Tokens can be determined by the number of purchased Asset Tokens and the link to a specific home. It can be a predetermined amount of HPI Tokens per 1 Asset Token.
  • Quarter can establish predetermined time periods, known as HPI Intervals (which HPI Interval is initially set to be annually) when it can update the Current Valuation for each House then-existing on the Quarter Platform for the purpose of calculating the change in the Current Valuation of each House during that period.
  • the Home Price Appreciation (HP A) and/or Home Price Depreciation (HPD) can be calculated.
  • the calculation date can be referred to as the “HPA/HPD Determination Date”).
  • the first HPA/HPD Determination Date may not occur prior to the removal of the “transfer lock” of the HPI Tokens.
  • the calculation can be the difference between (i) the Current Valuation of a particular House then-existing on the Quarter Platform conducted at the end of the current HPI Interval and (ii) the Current Valuation of a particular House conducted at the end of the immediately preceding HPI Interval. If the difference is a positive number, the difference can be deemed to be the Home Price Appreciation (HP A).
  • the difference can be deemed to be the Home Price Depreciation (HPD). If the difference is zero, then there may be no HPA or HPD. In the event that a House was boarded onto the Quarter Platform during the current and/or immediately preceding HPI Interval and/or the Occupancy Token was transferred to a new Homeowner during the cunent and/or immediately preceding HPI Interval, then the Current Valuation of such particular House at the time of boarding or transfer (the “Reset Current Valuation”) can be substituted for the previous HPI Interval’s Current Valuation for such particular House.
  • HPD Home Price Depreciation
  • the High-water Mark can be removed.
  • the new Asset Token holder’s future right to Unlocked HPI Tokens can be based on the Current Valuation for such particular House at the time of transfer and/or from the end of the immediately preceding HPI Interval prior to the transfer to the new Investor.
  • the Original Asset Token Nominal Value can be replaced with the Current Adjusted Asset Token Nominal Value for the transferred tokens which can be calculated as the proportional value of Asset Tokens based on the lesser of (i) the Current Valuation at time of transfer and/or (ii) the Current Valuation at the end of the immediately preceding HPI Interval.
  • HPI Tokens held by holders of Asset Tokens linked to such particular SPE for such particular House can be Unlocked based on the following example formula. (Note that many variations of this formula may also be used. For example, in some embodiment, some variables may not be used and/or some variables may be added):
  • T u MIN((V C - V P ) I V P , (V c - H w ) / H w ) * R * MIN(N 0 , N P ) I T v
  • V p Previous HPI Interval Current Valuation
  • N p Current Adjusted Asset Token Nominal Value
  • the number of HPI Tokens Unlocked for each Asset Token for a particular SPE can be computed as follows:
  • Step 1 multiplying (A) the lesser of (i) Current Valuation (in USD) of a particular House at the time of the valuation minus the Current Valuation (in USD) at the end of the immediately preceding HPI Interval (the “Previous HPI Interval Current Valuation”), the result of which shall then be divided by the Previous HPI Interval Current Valuation (in USD) for a particular House, or (ii) Current Valuation (in USD) of a particular House at the time of the valuation minus the HPI High-water Mark (in USD), the result of which shall then be divided by the HPI High-water Mark (in USD), by (B) the HPI Realization Percentage (initially set at 90%).
  • Step 2 The result of Step 1 can then be multiplied by (a) the Original Asset Token Nominal Value and/or (b) the Current Adjusted Asset Token Nominal Value.
  • Step 3 The result of Step 2 can then be divided by (D) the then-existing market price of the HPI Tokens (“HPI Token Market Value”).
  • Step 3 If the result of Step 3 is a negative number, then no HPI Tokens may be Unlocked.
  • HPI Tokens in the amount of a predetermined amount and/or percentage of all issued HPI Tokens can be issued to Quarter by the Fund, but such issued HPI Tokens can be initially locked.
  • HPI Tokens issued to Quarter pursuant to this paragraph can be Unlocked in the amount calculated pursuant to the following example formula. (Note that many variations of this formula may also be used. For example, in some embodiment, some variables may not be used and/or some variables may be added ):
  • T u MIN(V C - V p , V c - H w ) * Si * Q h / T v
  • V p Previous HPI Interval Current Valuation
  • Si Real Estate Interests of a particular SPE
  • the number of HPI Tokens Unlocked for the benefit of Quarter for a particular SPE can be computed as follows:
  • Step 1 multiplying (A) the lesser of (i) Current Valuation (in USD) of a particular House at the time of the valuation minus the Previous HPI Interval Current Valuation, or (ii) Current Valuation (in USD) of a particular House at the time of the valuation minus the HPI High-water Mark, by (B) Real estate Interests of a particular SPE.
  • Step 2 the result of Step 1 can then be multiplied by (C) the amount of the HPI Tokens Quarter is entitled to receive pursuant to this offering (i.e. 5%) (the “Quarter Pro-Rata HPI”).
  • Step 3 the result of Step 2 can then be divided by (D) HPI Token Market Value.
  • the Quarter Platform can decide whether an escrow is required for real estate taxes, insurance, and HOA fees (the “Property Escrow Account”).
  • the determination of whether there will be a Property Escrow Account can be based on an algorithm using various consumer and property data points as well as local jurisdictional requirements and can be determined by Quarter from time to time.
  • Any escrow payments (the “Property Escrow Amounts”) can be paid by Homeowner as a part of the Payments and can be distributed to Property Escrow Account maintained by a third-party escrow services provider.
  • the Homeowner can have the right to sell a portion of the Real Estate Interests held by the Homeowner to the SPE. Some or all Investors can have the right to purchase the Homeowner’s Real Estate Interests at a price determined via a predetermined formula in proportion to total Asset Tokens linked to the SPE. As a result of the sale, the Homeowner can receive the sales proceeds and the Base Rent paid by the Homeowner can be increased pursuant to a pre-determined formula set forth below.
  • the Homeowner can also have the right to purchase a portion of Real Estate Interests held by the SPE at a predetermined price and/or Investors whose Asset Tokens are linked to the SPE can have the obligation to sell their Asset Tokens in proportion to their existing percentages of the total Asset Tokens linked to the SPE.
  • the Homeowner’s Base Rent can thereby be reduced pursuant, such as according to the example pre-determined formula set forth below. (Note that many variations of this formula may also be used. For example, in some embodiment, some variables may not be used and/or some variables may be added).
  • Homeowner can pay the recordation or transfer taxes on the sale of Real Estate Interests or the House, if any.
  • Homeowner can have the right to purchase and/or sell Real Estate Interests as follows:
  • the purchase price payable by Homeowner can, for example, be equal to (A) (i) the Current Valuation of such Interests subject to Purchase determined by Quarter at the time of purchase if the transaction amount is no more than a predetermined amount, and if the Interests subj ect to Purchase is no more than a predetermined amount and/or percentage of the total interests in the property or (ii) the Current Enhanced Valuation of such Interests subject to Purchase determined by Quarter at the time of purchase if the transaction amount exceeds a predetermined amount or if the Interests subject to Purchase exceeds a predetermined amount and/or percentage of the total interests in the House, plus (B) all of the transfer and recordation taxes and other fees that become due as a result of the purchase of such Real Estate Interests, and the applicable Platform Transaction Fee.
  • the purchase price payable by Homeowner can be equal to (A) (i) the Current Valuation of such Interests subject to Sale determined by Quarter at the time of sale if the amount of Excess Equity is no more than a predetermined amount, and if the Interests subject to Sale is no more than a predetermined amount or percentage of the total Real Estate Interests in the House or (ii) the Current Enhanced Valuation of such Interests subject to Sale determined by Quarter at the time of sale if the amount of Excess Equity exceeds a predetermined amount or if the Interests subject to Sale exceeds a predetermined amount or percentage of the total Real Estate Interests in the House, plus (B) all of the transfer and recordation taxes and other fees that become due as a result of the sale of such Real Estate Interests, and the applicable Platform Transaction Fee.
  • the Quarter Platform could make changes of respective Real Estate Interests held by Homeowner and SPE in the House via amendment(s) to the Real Estate deed.
  • An escrow mechanism can be used (e.g., to avoid possible frequent deed recordation and/or for other reasons) whereby the deeds to be recorded to evidence the change of respective Real Estate Interests held by the Homeowner and/or SPE in the House can be delivered to a third-party escrow agent retained by Quarter.
  • Homeowner, SPE and the escrow agent can enter into a tri-party escrow agreement such that the escrow agent can record the then existing deeds between the Homeowner and SPE at a designated time by Quarter (e.g.
  • the new amended deed can replace the preceding deed in the escrow agent’s possession and/or the preceding deed can be destroyed such that the escrow agent may be able to hold the most recent deed to reflect the then-current respective Real Estate Interests held by the Homeowner and the SPE.
  • the Homeowner can have the right to sell the House in its entirety to a third-party purchaser as follows:
  • the Homeowner can give notice to Quarter through the Quarter Platform Homeowner Dashboard of Homeowner’s intent to sell the House.
  • the Homeowner can be barred from requesting to sell the House in its entirety within a pre-determined amount of days of buying or selling Homeowner’s Real Estate Interests without first receiving a waiver from Quarter.
  • the Quarter Platform can notify the Investors whose Asset Tokens are linked to the House of the Homeowner’s intent to sell the House, and any further trading of such Asset Tokens that are linked to the SPE by the Investors can be barred unless a waiver is obtained from Quarter.
  • the Quarter Platform can refer the House to a Quarter Preferred Agent Provider who can recommend a listing price. (1) If the suggested listing price is equal to or greater than the Current Valuation of the House, the Homeowner can list the House for sale on the Quarter Platform, or any other platform or website.
  • the listing price can be set at the greater of the suggested listing price or the Cunent Enhanced Valuation amount.
  • (v) Homeowner can reimburse the Quarter Platform for the costs incurred by the Quarter Platform in connection with the sale of the House, including the fees incurred by Quarter Platform in connection with the determination of the Cunent Valuation and the Current Enhanced Valuation.
  • the amounts available in the Quarter Real Estate Commission Fund with respect to the House can be calculated using (A) a credit for a predetermined amount and/or percentage of the gross sale price (valuation at the time of the boarding of the property on the Quarter Platform of the House for each month Homeowner has held its Occupancy Token, up to a maximum of a predetermined amount of time (e.g., 96 months) (the “Commission Credit”) and/or (B) the actual amounts linked to the House sitting with the Quarter Real Estate Commission Fund.
  • Capital to fund such Commission Credit will come from the Quarter Real Estate Commission Fund. If the amounts (including the Commission Credit) linked to the House sitting with the Quarter Real Estate Commission Fund exceed the actual real estate sales commission payable at the Sales Closing, the excess can be paid to Quarter for use as general funds without further obligation.
  • the Homeowner can be assessed an exit fee in the amount of a predetermined amount and/or percentage of the gross sale price of the House (the “Exit Fee”), which Exit Fee can be paid to Quarter on the Sales Closing unless the Homeowner uses the sales proceeds to purchase another House on the Quarter Platform, in which case the Exit Fee can be a predetermined amount and/or percentage of the gross sale price of the House (the “Reduced Exit Fee”) and provided some or all of the following conditions are met:
  • the Homeowner can sign a letter to indicate their intent to use Quarter Platform to purchase a new House prior to the closing of the sale of their existing House (the “Closing”).
  • the Homeowner can identify a replacement House within 90 days after the Closing, and can close the purchase transaction of a new House through the Quarter Platform within 180 days after the Closing. (3) Homeowner can pay the recordation or transfer taxes on the sale of their existing House.
  • the proceeds can first be used to pay SPE in proportion to SPE’s Real Estate Interests (for illustration purposes, if the proceeds are $300,000 and SPE’s Real Estate Interests are 80%, then $240,000 can be paid to SPE).
  • SPE can then distribute the proceeds received to the Fund, and the Fund can then distribute the proceeds received (i) first, to the Asset Token holders other than the Impact Investors, (ii) second, to the HPI Token holders, and (iii) third, to the Impact Investors, all in proportion to the amount of the activated Asset Tokens and the Unlocked HPI Tokens they have with respect to the House.
  • the proceeds can then be used to pay Quarter Platform for the costs incurred by the Quarter Platform in connection with the sale of the House, including the fees incurred by Quarter Platform in connection with the determination of the Current Valuation and the Current Enhanced Valuation, as applicable.
  • the proceeds can then be used to pay the recordation and transfer tax in connection with the Closing and title policy premiums and other fees charged by the Title Company, as well as the other seller charge shown on the settlement statement in connection with the Closing; except, however, Homeow ner has the right to use the balance of the Property Escrowed Amounts held in the Property Escrow Account to pay the seller’s pro-rata share of the real estate taxes and HOA dues. After Homeowner’s application of the Property Escrowed Amounts linked to the House sitting with the Property Escrow Account, any remaining balance of the Escrowed Amounts can be refunded to the Homeowner.
  • Homeowner’s defaults can include the failure to make the Payments, imposition of liens on the House, failure to repair and maintain the property in good condition, and/or other events set forth in the Real Estate Agreements.
  • SPE can have the right, but not the obligation to cause the Quarter Risk Pool to advance the funds required to pay the delinquent amounts, and such an advance by Quarter Risk Pool at the request of Homeowner can constitute a recourse loan to Homeowner.
  • a lien can be placed on the entirety of Homeowner’s Minimum Retained Equity represented by the applicable Interests held by Homeowner for the amount of the shortfall. Placement of a lien can trigger an eviction proceeding, revocation of the Occupancy Token, sale of the Property, and dissolution of the Real Estate Agreement, as determined by Quarter in its sole discretion, on behalf of the SPE.
  • a Current Enhanced Valuation can be ordered by Quarter to determine the pre- and post-improvement value of the House in order to calculate the Capital Improvement Value.
  • the post-improvement valuation can require an onsite inspection to confirm the work has been completed.
  • Homeowner can bear all the costs for valuations and inspections.
  • the Capital Improvement Value can be calculated by subtracting the pre-improvement value from the postimprovement value. Upon the sale of the House, Homeowner can be entitled to receive a credit equal to the Capital Improvement Value.
  • Quarter In order to facilitate home purchases by Applicants who would not otherwise qualify to purchase a House on the Quarter Platform and/or in order to reduce the Homeowner’s default risks, which default can subj ect the Homeowner to the eviction from the House, Quarter can use an infrastructure that can allow Impact Investors to leverage the Quarter Platform to assist those Applicants and Homeowners.
  • Asset Tokens held by Impact Investors can be entitled to their pro-rata share of the Base Rent plus the Enhanced Rent paid by the Homeowner. Impact Investors Asset Tokens can be entitled to pro-rata distribution of net proceeds in the event of sale of the entire House, as further described in the “Distributions Waterfall” provisions in the section captioned “Major terms and conditions of the Real Estate Agreement.”
  • the section captioned '"Overview of Asset Tokens sets forth more details about the Impact Investors’ rights associated with the Asset Tokens.
  • the SPE can redeem a portion of the Asset Tokens held by the Impact Investor equal to the amount of Real Estate Interests purchased each month by the Homeowner from the SPE.
  • Fiat Currency paid by Impact Investors to purchase Asset Tokens may be held in the Cash Funding Pool and/or can be released to the SPE upon acquisition of the House.
  • Landing Pages e.g., deploy marketing to convert leads to actions, measure the results and adjust the campaigns
  • Ability to independently create and maintain separate landing pages for a number of user types such as consumers and investors (e.g., home investors, home angels), vendors, realtors, settlement agents, etc.
  • Page one can be (i) email, password and/or (ii) third-party OAuth.
  • the user id can be different from the email address. i. The user id can composition will follow best practices.
  • Passwords composition can follow best practices. i. Passwords can display a weak, medium and strong message to users as they create them. ii. Passwords which do not meet minimum security requirements may not be accepted. iii. Passwords can be double entered when created or changed.
  • Data can include: self-reported income and credit data, ability to make down payment, info on home equity, zip code from home purchases, address for refinance, etc., or any combination thereof. ii. Can split applicant paths into refinance or purchase based on user supplied info.
  • This data can include the address, value and their estimated equity which may be computed by collecting their mortgage balances and subtracting from the estimated value.
  • Value estimates can be provided by using address data to lookup on third party sites (such as Zillow).
  • i. Can allow the user to edit any third party valuations supplied.
  • iii. Can run the MRE engine using the unverified consumer supplied data as inputs (this can be an estimated MRE for use in making the initial go/no-go decision).
  • iv. Can make an initial go/no-go determination based on the user selfreported data including an initial determination of need for down payment assistance for purchase or homeowner assistance for a refinance.
  • a match can occur when there is at least 1 assistance program the applicant qualifies for based on the user reported data. vi. Can make a go/no-go determination using the MRE calculations and downpayment assistance determinations (if applicable) and notify the applicant of the decision.
  • This calculator can show how the monthly payment changes as the cash out amount is moved higher and lower.
  • Consumer application e.g., collect information from consumer to determine if the consumer is qualified for Quarter
  • Joint applications may use different fees.
  • API can securely transfer data. iii. Can receive credit and income underwriting information back from underwriting.
  • the platform may need the ability to set up and maintain data collection requirements based on discrete jurisdictional needs. vi. Can make initial go/no-go decisions based on user entered data (are they accredited, what jurisdiction are they in, etc.)
  • Network investor application e.g., Collect information from network investor to be used to conduct diligence to determine if they are qualified to be a Quarter network investor
  • ii. Can enable A/B testing for next step messaging.
  • iii. Can collect application fees (if any).
  • ii. Can enable messaging to network investors.
  • iii. Can enable downloading/uploading of additional documents as required.
  • iv. Can track and archive all communications which occur.
  • Network investor diligence e g., determine if applicant is qualified to become a Quarter network investor
  • i. Can share information about network investor applicants with third- party compliance vendors so they can conduct appropriate checks.
  • HPI Tokens can mint HPI Tokens and move to the wallet for the HPI Token Escrow Pool.
  • the HPI tokens can also be subject to both a Time Lock and a Transfer Lock.
  • Different tokens can be minted at the same time or at different times.
  • Home Angel pre application i. Can present pre-apphcation messaging as next steps to the impact investor after successful completion of account registration process. ii. Can enable A/B testing of next steps messaging. iii. Can track unique applications by lead source for invoicing/payment of lead providers (if allowed).
  • the platform can have the ability to set up and maintain data collection requirements based on discrete j urisdictional needs. vi. Can make initial go/no-go decisions based on user entered data (are they accredited, what jurisdiction are they in, etc.)
  • Impact investor application e. g. , collect information from impact investor to be used to conduct diligence to determine if they are qualified to be a Quarter impact investor
  • i. Can present the full application as the next step for the impact investor after successfully passing pre application screening.
  • ii. Can enable A/B testing for next step messaging.
  • iii. Can collect application fees (if any).
  • iv. Can collect impact investor information sufficient to conduct diligence for KYC/AML/Accreditation/Other
  • Manage assistance program(s) e.g., the impact investor sets up criteria which define the assistance programs it will offer and deploy capital for
  • i. Can enable the impact investor to set up 1 or more unique down payment or homeowner assistance programs. Can allow the impact investor to define the attributes of each program they wish to offer.
  • a. Can enable the impact investor to choose a unique name for each program. i. All names can be submitted to Quarter for approval.
  • b. Can set the financial parameters for each program. (Subject to certain term and conditions set by Quarter)) i. Can set max and minimum amount to invest for each consumer.
  • ii. Can set a target return on investment. iii.
  • the property characteristics can be selected from a set of pre-established fields which Quarter can approve and maintain. 2. Impact investors can have the ability to add, edit and delete these programs as they wish. s. Collect consumer assistance application data (e. g. , to gather the data needed for the impact investor to underwrite an assistance application) i. Can flow information gathered during the consumer application process into the assistance application and prefill fields to avoid redundant data entry. ii. Can create dynamic application forms for each consumer based on the specific assistance programs they have matched with. iii. Can filter the superset of data provided by the consumer to the specific subset needed for each unique assistance program application.
  • consumer assistance application data e. g. , to gather the data needed for the impact investor to underwrite an assistance application
  • ii. Can create dynamic application forms for each consumer based on the specific assistance programs they have matched with.
  • iii. Can filter the superset of data provided by the consumer
  • Underwrite assistance applications e.g., decide which assistance applications are approved or denied
  • Human intervention may be enabled.
  • Underwriting can happen within an online impact investor portal and no PII should leave our servers.
  • the applicant data shared can be pulled from the superset of information collected during the assistance application process and then filtered to the subset required for each of the specific programs being underwritten. in.
  • This workflow and queue can include the following functionality:
  • System can generate an invite and email. ii. Can allow the applicant's realtor to create a user account (if applicable).
  • Realtor’s can be able to manage multiple clients on the system at the same time via one account. iii. Can enable communication between the applicant and the Realtor. iv. Can allow a consumer to terminate a realtor relationship.
  • Approved users with access can do this.
  • x. Can allow approved users to upload executed contracts w/ addendums and possibly enable the seller to docusign on our system xi. Can review and approve executed contract w/ addendums.
  • Vendors can be Quarter approved.
  • MRE amount and Excess equity can be recalculated in and displayed to occupant in real time so they know what they have available to sell.
  • HPI token management e.g., track home price appreciation and manage HPI token distributions
  • APE Via, e.g., APE 2. Can automatically scrub and identify data which is suspect (e.g. >n% change or not in sync with expected ranges).
  • Occupancy Token Management i. Occupancy tokens can be locked and shall remain in an escrow and/or wallet ii. Occupancy tokens can be redeemed and burned in the event the home they are attached to is sold and leaves the networks. iii. An occupancy token may be transferred to another occupant in the future.
  • T oken creation / tracking a.
  • Asset tokens b.
  • HPI tokens c.
  • Website tracking conversion tools (Optinuzely)
  • FIG. 5 Various embodiments of the present disclosure are described in terms of the example computer system of FIG. 5. After reading this description, it will become apparent to a person skilled in the relevant art how to implement the present disclosure using other computer systems and/or computer architectures.
  • the present disclosure can be implemented on a computer system or on a mobile application
  • the present disclosure can be implemented using blockchain or not using blockchain.
  • operations may be described as a sequential process, some of the operations may in fact be performed in parallel, concurrently, and/or in a distributed environment, and with program code stored locally or remotely for access by single or multi-processor machines.
  • the order of operations may be rearranged without departing from the spirit of the disclosed subject matter.
  • Processor device may be a special purpose, or a general-purpose processor device specifically configured to perform the functions discussed herein.
  • the processor device may be connected to a communications infrastructure, such as a bus, message queue, network, multi-core message-passing scheme, etc.
  • the network may be any network suitable for performing the functions as disclosed herein and may include a local area network (LAN), a wide area network (WAN), a wireless network (e.g., WiFi), a mobile communication network, a satellite network, the Internet, fiber optic, coaxial cable, infrared, radio frequency (RF), or any combination thereof.
  • LAN local area network
  • WAN wide area network
  • WiFi wireless network
  • mobile communication network e.g., a mobile communication network
  • satellite network the Internet, fiber optic, coaxial cable, infrared, radio frequency (RF), or any combination thereof.
  • RF radio frequency
  • the computer system may also include a main memory (e.g., random access memory, read-only memory, etc.), and may also include a secondary memory.
  • the secondary memory may include the hard disk drive and a removable storage drive, such as a floppy disk drive, a magnetic tape drive, an optical disk drive, a flash memory, etc.
  • the removable storage drive may read from and/or write to the removable storage unit in a well-known manner.
  • the removable storage unit may include a removable storage media that may be read by and written to by the removable storage drive. For example, if the removable storage drive is a floppy disk drive or universal serial bus port, the removable storage unit may be a floppy disk or portable flash drive, respectively.
  • the removable storage unit may be non-transitory computer readable recording media.
  • the secondary memory may include alternative means for allowing computer programs or other instructions to be loaded into the computer system, for example, the removable storage unit and an interface.
  • Examples of such means may include a program cartridge and cartridge interface (e.g., as found in video game sy stems), a removable memory chip (e.g., EEPROM, PROM, etc.) and associated socket, and other removable storage units and interfaces as will be apparent to persons having skill in the relevant art.
  • Data stored in the computer system may be stored on any type of suitable computer readable media, such as optical storage (e.g., a compact disc, digital versatile disc, Blu-ray disc, etc.) or magnetic tape storage (e.g., a hard disk drive).
  • the data may be configured in any type of suitable database configuration, such as a relational database, a structured query language (SQL) database, a distributed database, an object database, etc. Suitable configurations and storage types will be apparent to persons having skill in the relevant art.
  • the computer system may also include a communications interface.
  • the communications interface may be configured to allow software and data to be transferred between the computer system and external devices.
  • Exemplary communications interfaces may include a modem, a network interface (e.g., an Ethernet card), a communications port, a PCMCIA slot and card, etc.
  • Software and data transferred via the communications interface may be in the form of signals, which may be electronic, electromagnetic, optical, or other signals as will be apparent to persons having skill in the relevant art.
  • the signals may travel via a communications path, which may be configured to carry the signals and may be implemented using wire, cable, fiber optics, a phone line, a cellular phone link, a radio frequency link, etc.
  • the computer system may further include a display interface.
  • the display interface may be configured to allow data to be transferred between the computer system and external display.
  • Exemplary display interfaces may include high-definition multimedia interface (HDMI), digital visual interface (DVI), video graphics array (VGA), etc.
  • the display may be any suitable type of display for displaying data transmitted via the display interface of the computer system, including a cathode ray tube (CRT) display, liquid crystal display (LCD), light-emitting diode (LED) display, capacitive touch display, thin-film transistor (TFT) display, etc.
  • CTR cathode ray tube
  • LCD liquid crystal display
  • LED light-emitting diode
  • TFT thin-film transistor
  • Computer program medium and computer usable medium may refer to memories, such as the main memory and secondary memory, which may be memory semiconductors (e.g., DRAMs, etc.). These computer program products may be means for providing software to the computer system.
  • Computer programs e.g., computer control logic
  • Such computer programs may enable computer system to implement the present methods as discussed herein.
  • the computer programs when executed, may enable processor device to implement the methods, as discussed herein. Accordingly, such computer programs may represent controllers of the computer system.
  • the software may be stored in a computer program product and loaded into the computer system using the removable storage drive, interface, and hard disk drive, or communications interface.
  • the processor device may comprise one or more modules or engines configured to perform the functions of the computer system.
  • Each of the modules or engines may be implemented using hardware and, in some instances, may also utilize software, such as corresponding to program code and/or programs stored in the main memory or secondary memory.
  • program code may be compiled by the processor device (e.g., by a compiling module or engine) prior to execution by the hardware of the computer system.
  • the program code may be source code written in a programming language that is translated into a lower level language, such as assembly language or machine code, for execution by the processor device and/or any additional hardware components of the computer system.
  • the process of compiling may include the use of lexical analysis, preprocessing, parsing, semantic analysis, syntax-directed translation, code generation, code optimization, and any other techniques that may be suitable for translation of program code into a lower level language suitable for controlling the computer system to perform the functions disclosed herein. It will be apparent to persons having skill in the relevant art that such processes result in the computer system being a specially configured computer system uniquely programmed to perform the functions discussed above. Techniques consistent with the present disclosure provide, among other features, systems and methods for performing transactions via asset tokens and a blockchain based smart contract.

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Abstract

L'invention concerne des procédés et des systèmes de transfert d'informations, consistant à : transmettre, au moyen d'un premier dispositif informatique du premier système informatique, une première demande de fonction de réseau à un réseau décentralisé, la première demande de fonction de réseau comprenant des premières informations ; et transmettre, au moyen d'un second dispositif informatique du second système informatique, une seconde demande de fonction de réseau au réseau décentralisé, la seconde demande de fonction de réseau comprenant des secondes informations.
PCT/US2023/024936 2022-06-13 2023-06-09 Procédés et systèmes de transmission d'informations WO2023244508A1 (fr)

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US17/806,677 2022-06-13
US17/806,677 US20220358576A1 (en) 2019-12-13 2022-06-13 Methods and systems for transmitting information

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Citations (4)

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US20190207751A1 (en) * 2018-01-04 2019-07-04 Bank Of America Corporation Blockchain enterprise data management
US20190251552A1 (en) * 2018-02-13 2019-08-15 Bank Of America Corporation Multi-Tiered Digital Wallet Security
US20190303893A1 (en) * 2018-03-28 2019-10-03 Bank Of America Corporation Blockchain-Based Property Management
US20200211134A1 (en) * 2018-12-31 2020-07-02 Social Equity Incorporated System and method for providing onboarding, configuration and exchange of real estate units into a real estate ownership mobility platform

Patent Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US20190207751A1 (en) * 2018-01-04 2019-07-04 Bank Of America Corporation Blockchain enterprise data management
US20190251552A1 (en) * 2018-02-13 2019-08-15 Bank Of America Corporation Multi-Tiered Digital Wallet Security
US20190303893A1 (en) * 2018-03-28 2019-10-03 Bank Of America Corporation Blockchain-Based Property Management
US20200211134A1 (en) * 2018-12-31 2020-07-02 Social Equity Incorporated System and method for providing onboarding, configuration and exchange of real estate units into a real estate ownership mobility platform

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