Abstract:
New methods for use of improved vehicles allowing preemption of traditional hotel and vacation resort models for fractional ownership are disclosed. According to the teachings of the instant disclosures, unmatched return on investment dollars coupled with choices of properties and locations allows provision of amenities that are unparalleled in both the resort hotel and high-end vacation club industries. Administrative and finance issues generally rendering such matters challenging are likewise ameliorated according to the instant teachings.

Description:
RELATED APPLICATION 
       [0001]    This application claims the benefit of and priority to U.S. Provisional Application Ser. No. 60/883,964, filed Jan. 8, 2006, the contents of which are incorporated by reference herein in its entirety. 
     
    
     BACKGROUND 
       [0002]    1. Field 
         [0003]    The present disclosure relates to novel approaches to shared ownership generally and in particular to fields including real estate investment. 
         [0004]    In particular, the present disclosure specifically provides an improved economic model to exploit procurement of high-end properties for real estate investors, owners, and those wishing to participate in an optimized and functionally useful vacation and real estate investment program. Methods for novel aspects of luxury resort ownership are likewise disclosed, along with products by these process, investment vehicles, and related services. 
         [0005]    2. General Background 
         [0006]    Existing systems for fractional ownership are fraught with numerous pitfalls. As a long term participant in these markets, the present inventor has spent his career as a student of extant systems and now offers for consideration improvements to the same. Holding equity in shared ownership is a long-felt need not adequately addressed prior to the advent of the instant teachings. 
         [0007]    Real estate investments, and particularly those involved with acquiring properties with minimal investment, are often the goal of those skilled in these arts. However, taking the perspective of a professional realtor, and using ethical and visible mechanisms to accomplish this has not carried the day—prior to the advent of the instant teachings, which address and overcome these longstanding needs. 
       SUMMARY 
       [0008]    Briefly stated, novel enhanced methods for use of improved vehicles allowing preemption of traditional hotel and vacation resort models for fractional ownership are disclosed. According to the teachings of the instant disclosures, unmatched return on investment dollars coupled with choices of properties and locations allows provision of amenities that are unparalleled in both the resort hotel and high-end vacation club industries. Administrative and finance issues generally rendering such matters challenging are likewise ameliorated according to the instant teachings. 
         [0009]    According to embodiments of the present disclosure, there is provided an improved process and methodology for providing equity in at least a property, which may include, in combination: procuring the at least a property with at least one of cash and loans; establishing a land trust for taking and recording title to the at least a property; providing at least one investor owner with an investor ownership of the land trust; and providing at least one equity owner with an equity ownership of the land trust. At least one of the investor ownership and the equity ownership may be defined by an operating agreement of the land trust. The equity ownership may include at least one of a right to realize a portion of an appreciation value of the at least a property, a right to receive a portion of an external income based on a rental of the at least a property, a right to use the at least a property, and a right to use an amenity associated with the at least a property. The improved process and methodology may further include the steps of: managing the at least a property of the land trust; and receiving at least one payment from at least one of the equity owner and the investor owner. 
         [0010]    According to embodiments of the present disclosure, there is provided an improved real estate time-share related type of equity structure, which may include at least a property, a land trust, a property manager, an investor owner, and an equity owner. The property manager may manage the at least a property; the land trust may maintain title to the at least a property; the equity owner may hold equity ownership of the land trust; and the investor owner may hold investor ownership of the land trust. 
         [0011]    According to embodiments of the present disclosure, there is provided a novel instrument for ownership of at least a property by way of a financial structure, which may include financial transfers between each of a land trust, a property manager, an investor owner, and an equity owner. The equity owner may provide an equity payment; the land trust may provide an external payment; an external income may be received by the land trust; the land trust may provide at least one of a mortgage payment and a late fee; the property manager may receive a property management fee. Further, the equity owner may benefit from a right to receive income from the at least a property and a right to use the at least a property. 
     
    
     
       DRAWINGS 
         [0012]    The above-mentioned features and objects of the present disclosure will become more apparent with reference to the following description taken in conjunction with the accompanying drawings wherein like reference numerals denote like elements and in which: 
           [0013]      FIG. 1  is a block diagram schematically illustrating an example of an equity structure, which may include a property, a land trust, a property manager, an investor owner, and an equity owner, according to embodiments of the present invention; and 
           [0014]      FIG. 2  is a block diagram schematically illustrating an example of a financial structure, which may include financial transfers made between a land trust, a property manager, an investor owner, and an equity owner, according to embodiments of the present invention. 
       
    
    
     DETAILED DESCRIPTION 
       [0015]    The present inventor has discovered that for proper investor classes, granting actual ownership interests, or equity, can be well managed in an improved set of time-share types of ventures. The present inventor offers for consideration novel structures, including generating equity interests in real estate holdings hypothecated on a temporally fractionalized basis. A moderate investment of capital procures an equity stake, virtually risk free in terms of additional financial risk or otherwise foreseeable contingencies. Equity owners may benefit from the recommendation of experienced specialists in valuation, procurement, and management of selected properties. 
         [0016]    Reference will now be made to embodiments, examples of which are illustrated in the accompanying drawings. While the invention will be described in conjunction with the preferred embodiments, it will be understood that these embodiments are not intended to limit the scope of the invention. On the contrary, the invention is intended to cover alternatives, modifications, and equivalents, which may be included within the spirit and scope of the invention as defined by the appended claims. As such, the descriptions of the embodiments that follow are for purposes of illustration and not limitation. 
         [0017]      FIG. 1  is a block diagram schematically illustrating an example of equity structure  10 , which may include property  12 , land trust  14 , property manager  16 , investor owner  18 , and equity owner  20 , according embodiments of the present invention. According to embodiments, an improved process and methodology for providing equity in at least a property may include, in combination: procuring at least a property  12  with at least one of cash and loans; establishing land trust  14  for taking and recording title to at least a property  12 ; providing at least one investor owner  18  with investor ownership  28  of land trust  14 ; and providing at least one equity owner  20  with equity ownership  30  of land trust  14 . At least one of investor ownership  28  and equity ownership  30  may be defined by an operating agreement of land trust  14 . Equity ownership  30  may include at least one of a right to realize a portion of an appreciation value of at least a property  12 , a right to receive a portion of an external income based on a rental of at least a property  12 , a right to use at least a property  12 , and a right to use an amenity associated with at least a property  12 . The improved process and methodology may further include the steps of: managing at least a property  12  of land trust  14 ; and receiving at least one payment from at least one of equity owner  20  and investor owner  18 . 
         [0018]    Property manager  16  may procure property  12  in procurement  22 . Property manager  16  may fund procurement  22  with at least one of cash and loans. Property  12  may include, but is not limited to, real property, a jet, a boat, a car, and a resort property such as a high value property, a desired geographic location, a luxurious villa, and other highly sought after vacation destinations. 
         [0019]    According to embodiments, land trust  14  may be established, and title  24  to property  12  may be placed in land trust  14 . For example, title  24  to property  12  may be taken and recorded by land trust  14 . In at least an embodiment, property manager  16 , as debtor, may enter into a mortgage agreement to procure property  12 , and land trust  14  may assume the position of property manager  16  as debtor under the mortgage agreement and obtain title  24  to property  12 . In at least an embodiment, land trust  14 , as debtor, may obtain title  24  to property  12  by entering into a mortgage agreement with property manager  16 , which may act as creditor. 
         [0020]    According to embodiments, property manager  16  may procure a plurality of properties  12 , wherein one land trust  14  may be established for each property  12 . In at least an embodiment, manager  16  may procure a plurality of properties  12 , wherein one land trust  14  may be established for the entire plurality of properties  12 . Property manager  16  may manage property  12 . For example, property manager  16  may be responsible for physical maintenance of property  12 . 
         [0021]    According to embodiments, investor owner  18  may be granted investor ownership  28  of land trust  14 . For example, investor ownership  28  may include rights and duties under a mortgage agreement between land trust  14  and property manager  16 , including the right to receive mortgage payments and late fees, which will later be discussed in more detail. Investor owner  18  may provide investor payment  32  to one or both of property manager  16  and land trust  14  as consideration for investor ownership  28 . Investor owner  18  holding investor ownership  28  may also manage land trust  14 . For example, investor ownership  28  may include rights and duties of managing the financial matters of land trust  14 . In one embodiment, investor owner  18  may be a trustee of land trust  14 . 
         [0022]    According to embodiments, at least one equity owner  20  may be given equity ownership  30  of land trust  14 . Equity ownership  30  may include a right to realize a portion of an appreciation value of property  12 , a right to receive a portion of an external income based on a rental of property  12 , a right to use property  12 , and a right to use amenities associated with property  12 . For example, the right to realize a portion of an appreciation value of property  12  may correspond to the size of equity ownership  30  in relation to other equity ownerships  30  and investor ownerships  28  of the same property  12 . The right to use property  12  may include use of property  12  for a guaranteed minimum number of days in a year corresponding with the size of equity ownership  30  in relation to other equity ownerships  30  and investor ownerships  28  of the same property  12 . In an embodiment, equity owner  20  may exchange the right to use property  12  in which it owns an interest for the use of another property  12  in which another equity owner  20  owns an interest. Amenities associated with property  12  may include, but are not limited to, a facility near property  12 , a private butler, a jet, a boat, a car, and other features that may be enjoyed during use of property  12 . In at least one embodiment, equity ownership  30  may include a guaranteed minimum income, wherein equity owner  20  receives at least a certain amount of income across a given period of time. 
         [0023]    According to embodiments, equity ownership  30  may include rights and, duties defined by an operating agreement of land trust  14 . For example, the operating agreement of land trust  14  may be modified to provide equity ownership  30  to equity owner  20  when equity owner  20  provides one or both of a down payment and at least one monthly payment to at least one of investor owner  18 , property manager  16 , and land trust  14 . Investor owner  18  may initially hold all ownership rights to land trust  14 , and investor owner  18  may distribute portions of its rights to land trust  14  in the form of equity ownership  30 . For example, investor owner  18 , having investor, ownership  28 , may retain 20% ownership of land trust  14 ; eight equity owners  20 , each having equity ownership  30 , may each hold a 10% ownership of land trust  14 . In one embodiment, equity owner  20  receives a deed corresponding to equity ownership  30 . 
         [0024]    According to embodiments, a referring equity owner  20  may receive a finder&#39;s fee based on a referral of one who becomes a new equity owner  20 . For example, a referring equity owner  20  may be paid the value of up to 3% of the price of equity ownership  30  purchased by a new equity owner  20 . 
         [0025]    According to embodiments, one or more of land trust  12 , property manager  16 , equity owner  20 , and investor owner  18  may be an entity that permits ownership by multiple parties. For example, investor owner  18  may be a stock-issuing entity such as, but not limited to, a limited liability company or a corporation. Property manager  16  may own a portion of the stock in investor owner  18 . Another investor, such as an investor providing capital, may also own a portion of the stock in investor owner  18 . In an embodiment, investor owner  18  may be a wholly-owned subsidiary of property manager  16 . In at least an embodiment, investor owner  18  may be a partnership. For example, property manager  16  may be a partner in investor owner  18 . 
         [0026]      FIG. 2  is a block diagram schematically illustrating an example of financial structure  36 , which may include financial transfers between land trust  14 , property manager  16 , investor owner  18 , and equity owner  20 , according to embodiments of the present invention. According to embodiments, each of land trust  14 , property manager  16 , investor owner  18 , and equity owner  20  may maintain at least one bank account to receive and send the financial transfers. 
         [0027]    According to embodiments, an improved real estate time-share related type of equity structure may include at least a property  12 , land trust  14 , property manager  16 , investor owner  18 , and equity owner  20 . Property manager  16  may manage at least a property  12 ; land trust  14  may maintain title  24  to at least a property  12 ; equity owner  20  may hold equity ownership  30  of land trust  14 ; and investor owner  18  may hold investor ownership  28  of land trust  14 . 
         [0028]    According to embodiments, a novel instrument for ownership of at least a property  12  by way of a financial structure may include financial transfers between each of land trust  14 , property manager  16 , investor owner  18 , and equity owner  20 . Equity owner  20  may provide equity payment  38 ; land trust  14  may provide external payment  46 ; external income  48  may be received by at least one of land trust  14  and investor owner  18 ; land trust  14  may provide at least one of mortgage payment  40  and late fee  42 ; and property manager  16  may receive property management fee  44 . Further, equity owner  20  may benefit from a right to receive income from at least a property  121  and a right to use at least a property  12 . 
         [0029]    According to embodiments, equity owner  20  may provide equity payment  38  to land trust  14 . For example, equity payment  38  may include monthly payments. Equity owner  20  may provide down payment  52  to investor owner  18 . In an embodiment, down payment  52  at least partially determines equity payment  38 , wherein equity payment  38  may be lower based upon a larger down payment  52 . For example, at least one of land trust  14 , property manager  16 , and investor owner  18  may provide equity owner  20  with private financing, wherein equity payment  38  may include payments required under such private financing. While the embodiment shown in  FIG. 2  shows equity payment  38  paid to land trust  14  and down payment  52  paid to investor owner  18 , it may be understood by those skilled in the art that equity payment  38  and down payment  52  may each be paid to one or more of land trust  14 , property manager  16 , and investor owner  18 . 
         [0030]    According to embodiments, land trust  14  may provide external payments  46 . For example, external payments  46  may include taxes, insurance, home owner&#39;s association fees, and repair expenses associated with property  12 . External income  48  may be received by land trust  14 . External income  48  may include rental income and damage fees associated with property  12 . For example, property  12  may be rented while not in use by equity owner  20  or investor owner  18  such that rental income and damage fees are collected from such rental of property  12 . According to embodiments, land trust  14  may provide at least one of mortgage payment  40  and late fees  42  to investment owner  18  according to a mortgage agreement by which land trust  14  obtained title  24  to property  12 . 
         [0031]    According to embodiments, land trust  14  may provide property management fee  44  to property manager  16 . For example, management fee  44  may include consideration in exchange for management  26  provided by property manager  16 . In at least an embodiment, property management fee  44  may be paid to property manager  16  by one or more of land trust  14 , investor owner  18 , and equity owner  20 . 
         [0032]    According to embodiments, investor owner  18  may provide debt repayment  54  to meet the obligations of any loan used to fund procurement  22  of property  12 . In at least an embodiment, one or both of land trust  14  and property manager  16  may provide debt repayment  54  to meet the obligations under any loan used to fund procurement  22  of property  12 . 
         [0033]    According to embodiments, property manager  16  may provide financial report  50  on behalf of land trust  14  to at least one of land trust  14 , investor owner  18 , and equity owner  20 . For example, financial report  50  may include information regarding at least one of management  26  provided by property manager  16 , external payments  46 , external income  48 , and any other information relevant to property  12  or land trust  14 . Where equity owner  20  makes equity payments  38 , financial report  50  contains information demonstrating to equity owner  20  that equity payments  38  are being used to provide debt repayment  54  to meet the obligations of any loan used to fund procurement  22  of property  12  and to maintain title  24  to property  12 . 
         [0034]    According to embodiments, the financial structure may include financial benefits from a tax structure. For example, the tax structure may include the ability of at least one of equity owner  20  and investor owner  18  to treat equity ownership  30  or investor ownership  28 , respectively, as capital gains. The tax structure may also include the ability to establish one or more of land trust  12 , property manager  16 , equity owner  20 , and investor owner  18  as an entity that receives beneficial tax treatment, such as, but not limited to, a partnership, an S-corporation, a limited-liability company, or any other entity that receives beneficial tax treatment. 
         [0035]    While the method and agent have been described in terms of what are presently considered to be the most practical and preferred embodiments, it is to be understood that the disclosure need not be limited to the disclosed embodiments. It is intended to cover various modifications and similar arrangements included within the spirit and scope of the claims, the scope of which should be accorded the broadest interpretation so as to encompass all such modifications and similar structures. The present disclosure includes any and all embodiments of the following claims. 
         [0036]    It should also be understood that a variety of changes may be made without departing from the essence of the invention. Such changes are also implicitly included in the description. They still fall within the scope of this invention. It should be understood that this disclosure is intended to yield a patent covering numerous aspects of the invention both independently and as an overall system and in both method and apparatus modes. 
         [0037]    Further, each of the various elements of the invention and claims may also be achieved in a variety of manners. This disclosure should be understood to encompass each such variation, be it a variation of an embodiment of any apparatus embodiment, a method or process embodiment, or even merely a variation of any element of these. 
         [0038]    Particularly, it should be understood that as the disclosure relates to elements of the invention, the words for each element may be expressed by equivalent apparatus terms or method terms—even if only the function or result is the same. 
         [0039]    Such equivalent, broader, or even more generic terms should be considered to be encompassed in the description of each element or action. Such terms can be substituted where desired to make explicit the implicitly broad coverage to which this invention is entitled. 
         [0040]    It should be understood that all actions may be expressed as a means for taking that action or as an element which causes that action. 
         [0041]    Similarly, each physical element disclosed should be understood to encompass a disclosure of the action which that physical element facilitates. 
         [0042]    Any patents, publications, or other references mentioned in this application for patent are hereby incorporated by reference. In addition, as to each term used it should be understood that unless its utilization in this application is inconsistent with such interpretation, common dictionary definitions should be understood as incorporated for each term and all definitions, alternative terms, and synonyms such as contained in at least one of a standard technical dictionary recognized by artisans and the Random House Webster&#39;s Unabridged Dictionary, latest edition are hereby incorporated by reference. 
         [0043]    Finally, all referenced listed in the Information Disclosure Statement or other information statement filed with the application are hereby appended and hereby incorporated by reference; however, as to each of the above, to the extent that such information or statements incorporated by reference might be considered inconsistent with the patenting of this/these invention(s), such statements are expressly not to be considered as made by the applicant(s). 
         [0044]    In this regard it should be understood that for practical reasons and so as to avoid adding potentially hundreds of claims, the applicant has presented claims with initial dependencies only. 
         [0045]    Support should be understood to exist to the degree required under new matter laws—including but not limited to United States Patent Law 35 USC 132 or other such laws—to permit the addition of any of the various dependencies or other elements presented under one independent claim or concept as dependencies or elements under any other independent claim or concept. 
         [0046]    To the extent that insubstantial substitutes are made, to the extent that the applicant did not in fact draft any claim so as to literally encompass any particular embodiment, and to the extent otherwise applicable, the applicant should not be understood to have in any way intended to or actually relinquished such coverage as the applicant simply may not have been able to anticipate all eventualities; one skilled in the art, should not be reasonably expected to have drafted a claim that would have literally encompassed such alternative embodiments. 
         [0047]    Further, the use of the transitional phrase “comprising” is used to maintain the “open-end” claims herein, according to traditional claim interpretation. Thus, unless the context requires otherwise, it should be understood that the term “compromise” or variations such as “comprises” or “comprising”, are intended to imply the inclusion of a stated element or step or group of elements or steps but not the exclusion of any other element or step or group of elements or steps. 
         [0048]    Such terms should be interpreted in their most expansive forms so as to afford the applicant the broadest coverage legally permissible.