Abstract:
The present invention is in the field of real-estate acquisition for economic development. More particularly, the present invention is drawn to a method for making blocks of real-estate readily available for economic development at a minimum cost to investors, while expediting that development, and rewarding real-estate owners with options to purchase contracts.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
       [0001]    Not Applicable 
       STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT 
       [0002]    Not Applicable 
       SPECIFICATION 
     Background of the Invention 
       [0003]    The present invention is in the field of economic development. More particularly, the present invention is drawn to a method for making blocks of real-estate readily available for economic development at a minimum cost to investors, while expediting that development, and rewarding real-estate owners with income from the reassignment of options to purchase contracts as well as successful sale of their property. Options In Play Development Hero benefits from the exposure of the successful sale of properties utilizing the system and the options to purchase reassignment fees. 
         [0004]    A real-estate option contract is a contract that allows a purchaser the right to purchase a specific block of real-estate at a fixed price for a certain period of time. The buyer pays a fee for that right (typically 1% to 2% of the purchase price). Currently blocks of real-estate are often set aside for future developments by actually purchasing the real-estate and including it in industrial parks. This requires the outlay of significant amounts of capital to purchase that real-estate to form such parks. Many Local Economic Development Organizations or LEDO&#39;s are being formed in communities across the nation to assist in encouraging economic development utilizing this expensive approach. There is no system available to assist these LEDO&#39;s in expediting such developments while minimizing the development expense. 
       SUMMARY OF THE INVENTION 
       [0005]    The Options In Play Development Hero, Inc. Organization or OIPDHO embodies such a system and is illustrated in  FIG. 1 . It involves using a system of progressively more expensive reassignments of options-to-purchase contracts for real-estate as the duration of the optional right to purchase increases. The OIPDH system can either be contracted for with various LEDO&#39;s or can be managed directly by OIPDHO operatives between real-estate owners and investors in an Economic Development Area or EDA not covered by a LEDO. The option-to-purchase contract is a right to purchase not an obligation. 
         [0006]    If the OIPDHO is working directly with a real-estate owner without a LEDO involved, a percentage of the options-to-purchase-fees or OPF&#39;s goes to the OIPDHO and the remainder goes to the real-estate owner. 
         [0007]    If the OIPDHO has contracted with a LEDO, a percentage of the OPF&#39;s goes to the OIPDHO, a percentage goes to the LEDO and the remainder goes to the real-estate owner. The LEDO delegates the responsibility for contact with real-estate owners to OIPDHO operatives. A contract between LEDO&#39;s and the OIPDHO may be made by signing a Participation Service Agreement or PSA and paying a Participation Service Agreement fee to OIPDHO. A percentage of the OPF&#39;s paid to the LEDO is consideration for this contract. 
         [0008]    Knowledge of the real-estate available within the economic development zone, LEDO or EDA, its approximate value and a network of potential investors allow the OIPDHO to negotiate options-to-purchase contracts with sellers and arrange meetings between buyers and sellers. LEDO representatives, in cooperation with OIPDHO operatives, determine properties that may be of interest to developers or investors. Subject property owners are contacted and encouraged to access OPIDH web site to learn about the process and the potential OPF&#39;s that may be available. LEDO representatives monitor property owners that have registered online at the OIPDH web site or provided an options-to-purchase contract to OIPDHO and contact those that have not responded within a set period of time. Real-estate assets can be earning OPF&#39;s while large available tracts of real-estate can be controlled for a minimum investment of OPF&#39;s thus expediting economic development. 
         [0009]    OIPDHO holds the initial options-to-purchase contracts and reassigns those contracts to a developer or investor for a nominal fee plus the OPF for the desired duration. The advantages of the present invention without limitation will give either a LEDO or potential investors directly an opportunity to minimize the cost and expedite real-estate acquisition for economic development while rewarding real-estate owners with option to purchase contract fees and assistance in selling their property. OIPDHO benefits from the reassignment fees plus the exposure of assisting in real-estate development. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0010]    The features and other aspects of the invention are explained in the following description along with the accompanying Figures wherein: 
           [0011]      FIG. 1  illustrates an exemplary embodiment of a system; 
           [0012]      FIG. 2  illustrates the data flow relationships between entities in an exemplary embodiment of a system; 
           [0013]      FIG. 3A  illustrates the financial flow relationships between parties in an exemplary embodiment of a system where a LEDO is involved; 
           [0014]      FIG. 3B  illustrates the financial flow relationships between parties in an exemplary embodiment of a system where a LEDO is not involved; 
           [0015]      FIG. 4  illustrates steps in a method according to an exemplary embodiment; 
           [0016]      FIG. 5  illustrates continued steps in a method according to an exemplary embodiment where a LEDO is involved; and 
           [0017]      FIG. 6  illustrates continued steps in a method according to an exemplary embodiment where a LEDO is not involved. 
       
    
    
     DETAILED DESCRIPTION OF THE INVENTION 
       [0018]    Referring to  FIG. 1 , an example of Options In Play Development Hero system or OIPDH system  10  includes Options In Play Development Hero, Inc. organization or OIPDHO  12 , investors  28 , potential investor databases  14 , real-estate owners  30 , real-estate owner databases  16 , Local Economic Development Organization or LEDO  20 , network of LEDO&#39;s  18 , economic development authority or EDA  22  where a LEDO is not involved, electronically interconnected by OIPDH website  24 . Data input and output interfaces  26 , Option-to-Purchase contracts or OP contracts  32 , Participation Service Agreements or PSA&#39;s  34 , plat maps of EDA covered area  36  or plat maps of LEDO covered area  38  and appraised value maps of EDA area  40  or appraised value map of LEDO covered area  42 , involve and interact with various forms of computers and associated peripherals and components. These may be general or special purpose computers, each with one or more central processing units, fixed or removable storage for program code and program data, volatile and non-volatile memory, I/O devices such as keyboards, display screens, printers, pointing devices and network interface devices. Website  24  may exist on one or more of a local area network, a wide area network, the internet or the public switched telephone network. 
         [0019]    OP contracts  32  are broken into three time durations t 1 , t 2  and t 3 . An OP contract  32  term of t 1  equal to approximately  30  days or less requires the consideration of an OPFS  44  for a short term option contract; an OP contract  32  term of t 2  between  30  days and six months requires the consideration of an OPFM  46  for a medium term option contract; and an OP contract  32  term of t 3  of between  6  months and one year requires the consideration of an OPFL  48  for a long term option contract. The duration of the various term lengths are exemplary and different term lengths are negotiable to facilitate specific projects. 
         [0020]    OP contracts  32  are progressively more expensive as the duration t increases. An embodiment disclosing a typical set of option to purchase fees or OPF&#39;s  50  shows an OPFS  44  set at 0.25% of Sell Price, an OPFM  46  set at 1% of Sell Price, and an OPFL  48  set at 2% of Sell Price. These are exemplary fees and may be adjusted for specific economic development areas  22 , LEDO&#39;s  20  or the status of the national economy. 
         [0021]    PSA&#39;s  34  are agreements between LEDO&#39;s  20  and OIPDHO  12  wherein LEDO  20  delegates to OIPDHO  12  the responsibility of ascertaining the best match between investors  28  and real-estate owners  30  and negotiating OP contracts  32  between them. OIPDHO  12  is also responsible for collecting the OPF&#39;s  50  and disbursing them to LEDO  20 , OIPDHO  12  and real-estate owner  30  at the contracted percentages. OIPDHO  12  receives a payment from LEDO  20  in consideration of that PSA  34 , typically $10,000.00, but that consideration is subject to negotiation with LEDO  20 . 
         [0022]    If a LEDO  20  is involved, OPF&#39;s  50  are typically distributed 50% to real-estate owner  30 , 25% to LEDO  20  and 25% is retained by OIPDHO  12 . If LEDO  20  is not involved, the distribution is typically 50% to real-estate owner  30  and 50% to OIPDHO  12 . 
         [0023]      FIG. 1  shows a system flow diagram of OIPDH  10 , showing the interactions between the investor data base  14  and the real-estate owner database  16 , the OIPDH website  24  and the OIPDHO  12 .  FIG. 2  shows the data flow from place to place within OIPDH system  10  and  FIG. 3  shows the financial flow diagram within OIPDH system  10 . 
       OPERATION OF INVENTION 
       [0024]    Referring to  FIG. 4 , in an example embodiment, at step  52 , OIPDH system  10  system determines whether a LEDO will be involved in the development process. 
         [0025]    At step  54  potential investors  28  are identified. 
         [0026]    At step  56  potential investors are prequalified and registered in the potential investor database  14 . 
         [0027]    At step  58  all real-estate owners  30  within LEDO  18  assessment areas are identified and recorded in Owners database  16  for future solicitation. 
         [0028]    At step  60  real-estate owner&#39;s database  16  is updated with current owners  30  that have entered into OP contracts  32 . 
         [0029]    The process continues on sheet  5 ,  FIG. 5  where step  62  shows a Participation Service Agreement or PSA  34  is signed, the PSA fee collected and distributed to OIPDHO  12 . 
         [0030]    At step  64 , LEDO  18  delegates to OIPDH system  10  the responsibility for negotiating options contracts  32  between Owners  30  and investors  28  and the execution of them. 
         [0031]    At step  66  matches between owners  30  and investors  28  are determined by OIPDH operatives. Option contracts  32  are held by OIPDHO  12 . 
         [0032]    At step  68  Options contracts  32  are reassigned to investors  28  for a nominal fee. 
         [0033]    At step  70  a determination is made as to if the OP  32  is for the duration t 1 , t 1 +t 2 , or t 1 +t 2 +t 3 . 
         [0034]    At step  72  where the short term t 1  duration is selected the short term OPFS  44  is collected and delivered to OIPDHO. In an exemplary embodiment OPFS  44  is 0.25% of sell price. 
         [0035]    At step  74  where the medium term t 1 +t 2  duration is selected the medium term OPFM  46  is collected and delivered to OIPDH system  10 . In an exemplary embodiment OPFM  46  is 1% of sell price. 
         [0036]    At step  76  where the long term t 1 +t 2 +t 3  duration is selected the long term OPFL  48  is collected and delivered to OIPDH system  10 . In an exemplary embodiment OPFM  48  is 2% of sell price. 
         [0037]    At step  78  reassignment nominal fees are collected and deposited in OIPDH system  10 . 
         [0038]    At step  80  the OPF&#39;s  44 ,  46  and  48  and the reassignment nominal fees are divided and distributed, again in an exemplary embodiment, 50% to the real-estate owner  30 , 25% to LEDO  18  and 25% to OIPDHO  12 . 
         [0039]    If an Economic Development Authority or EDA  22  other than LEDO  18  is involved that allows OIPDH system  10  to work directly between owners  30  and investors  28  then system  10  loops back to the NO decision on step  52  on  FIG. 4 . 
         [0040]    At step  82  potential investors  28  are identified. 
         [0041]    At step  84  potential investors are prequalified and registered in the potential investor database  14 . 
         [0042]    At step  86  all real-estate owners  30  within EDA  22  assessment areas are identified and recorded in Owners database  16  for future solicitation. 
         [0043]    At step  88  real-estate owner&#39;s database  16  is updated with current owners  30  that have entered into OP contracts  32 . 
         [0044]    Jumping to  FIG. 6  at step  90  option to purchase contracts  32  are negotiated between OIPDH system  10  operatives and owners  30 . Option contracts  32  are held by OIPDHO. 
         [0045]    At step  92  potential matches between owners  30  and investors  28  are determined by OIPDH system operatives. 
         [0046]    At step  94  Options contracts  32  are reassigned to investors  28  for a nominal fee. 
         [0047]    At step  96  the nominal fees for the reassignment paperwork are collected and deposited in OIPDH system  10 . 
         [0048]    At step  98  a determination is made as to if the OP  32  is for the duration t 1 , t 1 +t 2 , or t 1 +t 2 +t 3 . 
         [0049]    At step  100  where the short term t 1  duration is selected the short term OPFS  44  is collected and delivered to OIPDHO. In an exemplary embodiment OPFS  44  is 0.25% of sell price. 
         [0050]    At step  102  where the medium term t 1 +t 2  duration is selected the medium term OPFM  46  is collected and delivered to OIPDH system  10 . In an exemplary embodiment OPFM  46  is 1% of sell price. 
         [0051]    At step  104  where the long term t 1 +t 2 +t 3  duration is selected the long term OPFL  48  is collected and delivered to OIPDH system  10 . In an exemplary embodiment OPFM  48  is 2% of sell price. 
         [0052]    At step  106  the OPF&#39;s  44 ,  46  and  48  and the reassignment nominal fees are divided and distributed, again in an exemplary embodiment, 50% to the real-estate owner  30 , 25% to LEDO  18  and 25% to OIPDHO  12 . 
         [0053]    Utilizing knowledge of investor  28  interests and OP contracts  32  signed, OIPDHO  12  operatives negotiate sale of real-estate while minimizing the upfront outlay of capital by investors or developers  28  and generating an income stream for real-estate owners  30 . 
         [0054]      FIG. 3  shows OIPDH web site  24  is set up with a means to accept OPF&#39;s  50  from investors  28 , LEDO&#39;s  20  or development authorities  22  and distribute them to real-estate owners  30 , LEDO&#39;s  20  and OIPDHO  12 . If a PSA  34  has been signed its consideration is received and deposited in OIPDHO  12 . An embodiment discloses a typical distribution of OPF&#39;s  50  of 50% to real-estate owner  30 , 25% to LEDO  20 , and the remainder retained by OPIDHO  12 . If no PSA  34  signed, the distribution is typically 50% for owner  30  and 50% to OIPDHO  12 . OPF&#39;s  50  are designed to encourage quick reaction by investors  28  by increasing OPF  50  as the duration of the option extends and to fairly compensate real-estate owner  30  for extension of time his property is off the market. An embodiment of an OIPDH system  10  discloses a short, medium and long term option cost. A short term option or OPFS  44  is suggested @0.25% of Sell Price; a medium term option or OPFM  46  is suggested @1% of Sell Price; and a long term option or OPFL  48  is suggested @2% of Sell Price. Suggested term lengths are approximately 30 days or less, an extension of six months and a second extension of another six months or 13 months in total respectively for the short term+medium term+and long term. 
         [0055]    While the foregoing written descriptions of the invention enables one of ordinary skill to make and use what is considered presently to be the best mode thereof, those of ordinary skill will understand and appreciate the existence of variations, combinations, and equivalents of the specific embodiment, method, and examples herein. The invention should therefore not be limited by the above described embodiments, methods, and examples, but by all embodiments and methods within the scope and spirit of the invention.