Abstract:
A system and method of acquiring an asset by a purchaser. The method begins by a purchasing entity purchasing an asset. A contractual relationship between the purchasing entity and the purchaser is then established. The purchaser agrees to pay a periodic fee to utilize the asset and equity is built by the purchaser in the asset by conducting specified transactions. The purchaser pays periodic fees, thereby allowing utilization of the asset. The purchaser conducts the specified transactions with a partnership entity affiliated with the purchasing entity. Equity is then built in the asset by the purchaser by conducting the specified transactions. Total ownership of the asset is transferred from the purchasing entity to the purchaser when the equity equals a specified amount. Additionally, transaction fees may be incurred by the partnership entity to the purchasing entity for each specified transaction. The asset may be any valuable item, such as a home, vehicle or other real or personal property.

Description:
BACKGROUND OF THE INVENTION 
       [0001]    1. Field of the Invention 
         [0002]    This invention relates to finances. Specifically, and not by way of limitation, the present invention relates to a financial system and method for acquiring an asset. 
         [0003]    2. Description of the Related Art 
         [0004]    Home ownership is a goal held by most people in the United States. Because of the large cost of purchasing a home, most people require financial assistance in the purchase of their home. In most instances, a home buyer secures a loan or mortgage for the purchase of the home. A lending institution, such as a mortgage company, then provides the funds so that the purchaser can buy the home. However, over the period of several years, typically 30 years, a purchaser must pay a monthly mortgage payment. Because of the structure of most mortgages, a large portion of each monthly payment, especially at the early years of the term of the loan, is devoted to interest payments on the mortgage. Thus, at the end of the mortgage period, typically the home purchaser has paid a substantial amount on interest (totaling in many cases more than the original purchase price of the home) to the lending institution. The structure of the loan, although it allows the home purchaser to buy and acquire a home, also takes a substantial portion of a person&#39;s life to completely own the home. A financial arrangement and method are needed which enables a home purchaser to buy a home in a substantially shorter period of time. 
         [0005]    Currently, there are several financial arrangements in place for the purchase of a home. There are several unique financial arrangements, although often not of a great benefit to the home purchaser, which are available to the purchaser. One type of mortgage now available provides an adjustable interest rate based on a national prime lending rate. Oftentimes this adjustable rate may be initially lower than current market interest rates, but over a period of time (e.g., three years), the adjustable rate goes up significantly. This significant rate hike often results in the purchaser being unable to continue making timely mortgage payments. In another type of mortgage plan, a purchaser is provided with an “interest only” mortgage plan where the purchaser is required to merely pay the interest on the mortgage loan. However, with the payment of interest only, the purchases will never pay down the loan and, thus, will never own the home. Also, without gains in the value of the home, the purchaser is unable to obtain equity in the home. In still another type, a financial arrangement is utilized to avoid the payment of interest on a loan. For example, Islamic law prohibits the payment of interest on loans. To circumvent this prohibition of interest, banks have set up innovative financial arrangements to avoid the payment of interest. However, these financial arrangements typically involving a home purchaser and bank partnering in buying a home. The home purchaser then pays a specified amount of fees every month to live and buy back ownership from the bank. However, these financial schemes do not teach or suggest utilizing transactions from other entities to build equity in a home. 
         [0006]    In addition, similar problems exist for purchasing other types of assets. Typically, a buyer is unable to purchase a new vehicle. Thus, the buyer must purchase the asset (vehicle) by obtaining a loan. The loans, in a similar manner as home loans, require the payment of interest. The payment of interest extends the amount of time necessary to completely pay back the loan. 
         [0007]    Therefore, it would be advantageous to provide a purchaser a financial arrangement and method for obtaining an asset allowing total ownership by the purchaser in a substantially less time period than present loan plans. It is an object of the present invention to provide such an arrangement and method. 
       SUMMARY OF THE INVENTION 
       [0008]    In one aspect, the present invention is a method of acquiring an asset by a purchaser. The method begins by a purchasing entity purchasing an asset. A contractual relationship between the purchasing entity and the purchaser is then established. The purchaser agrees to pay a periodic fee to utilize the asset and equity is built by the purchaser in the asset by conducting specified transactions. The fee may be any form of payment, such as cash, any financial instrument, checks, shares, rent, or any tangible good or service. The purchaser pays the periodic fee, thereby allowing utilization of the asset. The purchaser conducts the specified transactions with a partnership entity affiliated with the purchasing entity. Equity is then built in the asset by the purchaser by conducting the specified transactions. Total ownership of the asset is transferred from the purchasing entity to the purchaser when the equity equals a specified amount. Additionally, transaction fees may be incurred by the partnership entity to the purchasing entity for each specified transaction. 
         [0009]    In another aspect, the present invention is a computing system utilized for acquiring an asset by a purchaser. The system includes a point accumulator for accumulating points acquired by the purchaser when purchasing a good or service from a partnership entity. The accumulated points are converted into an equity balance within an equity balance account. Equity of the asset by the purchaser is then determined based on the equity balance within the equity balance account. The equity is built by the purchaser by purchasing a good or service from the partnership entity. 
         [0010]    In still another aspect, the present invention is a method of acquiring a home by a home purchaser. The method begins by a purchasing entity purchasing a home. A contractual relationship is established between the purchasing entity and the home purchaser wherein the home purchaser agrees to pay rent to occupy the home and equity is built by the home purchaser in the home by conducting specified transactions. The home purchaser pays rent, thereby allowing the occupancy of the home. Specified transactions are conducted by the home purchaser with a partnership entity affiliated with the purchasing entity. Equity is built by the home purchaser by conducting the specified transactions. Equity is then determined for the home purchaser of the home, wherein total ownership of the home is transferred from the purchasing entity to the home purchaser when the determined equity equals a specified amount. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0011]      FIG. 1  is a simplified block diagram of the components of a financial arrangement system in the preferred embodiment of the present invention; 
           [0012]      FIG. 2  is a simplified block diagram of a computing system utilized in the financial arrangement system in the preferred embodiment of the present invention; 
           [0013]      FIGS. 3A and 3B  are flow charts outlining the steps for acquiring a home by a home purchaser according to the teachings of the present invention; and 
           [0014]      FIGS. 4A-4C  are flow charts outlining the steps for obtaining a home equity loan within the financial arrangement system in a first alternate embodiment of the present invention. 
           [0015]      FIG. 5  is a simplified block diagram of the components of a financial arrangement system in a second alternate embodiment of the present invention; 
           [0016]      FIG. 6  is a simplified block diagram of a computing system utilized in the financial arrangement system in the second alternate embodiment of the present invention; 
           [0017]      FIGS. 7A and 7B  are flow charts outlining the steps for acquiring an asset by a purchaser in the second alternate embodiment of the present invention; and 
           [0018]      FIGS. 8A-8C  are flow charts outlining the steps for obtaining an equity loan within the financial arrangement system in a third alternate embodiment of the present invention. 
       
    
    
     DESCRIPTION OF THE INVENTION 
       [0019]    The present invention relates to a financial arrangement and method for the acquisition of an asset by a purchaser.  FIG. 1  is a simplified block diagram of the components of a financial arrangement system  10  in the preferred embodiment of the present invention. The financial arrangement system includes a purchasing entity  12 , a home purchaser  14  desiring to purchase a home  16 , and a plurality of partnership entities  18 . The purchasing entity may be any financial institution (such as a bank, a mortgage company, lending institution, etc.), an individual investor, an investing company or any entity, individual, or individuals capable of purchasing the home  16 . The home purchaser is any person, persons or entity desiring to purchase or obtain the home. 
         [0020]    The plurality of partnership entities  18  may include a consumer bank  20 , a retail store  22 , an insurance company  24 , an investment company  26 , a grocery store  28 , a gas station  30 , and a credit card company  32 . A partnership entity may be any entity providing services or goods either directly or indirectly to the home purchaser or an associated entity of the home purchaser (e.g., family). 
         [0021]      FIG. 2  is a simplified block diagram of a computing system  50  utilized in the financial arrangement system  10  in the preferred embodiment of the present invention. The computing system  50  includes a computer  52 , a memory unit  54 , a point accumulator  56 , an equity balance account  58 , and a partnership interface  60 . The partnership interface communicates with each of the partnership entities  18  (i.e., consumer bank  20 , retail store  22 , insurance company  24 , investment company  26 , grocery store  28 , gas station  30 , and credit card company  32 ). In addition, the computing system  50  communicates with the purchasing entity  12 . 
         [0022]    The computer  52  may be any computing device capable of performing accounting and computational processes commonly utilized in the financial industry. The memory unit allows the storage of data necessary for the computer to conduct the processes utilized in the present invention. The point accumulator  56  accounts for partnership points awarded to the home purchaser  14  when conducting business with any one of the partnership entities  18 . The equity balance account  58  provides a balance on the equity held in the home  16  by the home purchaser  14 . The partnership interface  60  allows any of the partnership entities to communicate with the computer  52 . 
         [0023]    With reference to  FIGS. 1 and 2 , the operation of the financial arrangement system  10  will now be explained. First, the home purchaser  14  desires to acquire the home  16 . However, the home purchaser has insufficient funds to purchase the home. The home purchaser then establishes a partnership with the purchasing entity  12 . The purchasing entity agrees to purchase the home and rent the home to the home purchase  14 . For example, a home may cost $100,000. A monthly rent is then established for which the home purchaser agrees to pay to live in the home. For example, a monthly rent of $100 may be agreed upon by the home purchaser to occupy the home. The monthly rent of $100 merely allows the home purchaser to occupy the home. Alternatively, the rent allows any person or persons designated by the home purchaser to occupy the home, thereby allowing the home purchaser to sublet the home to a third party. In an alternate embodiment of the present invention, the rent may be refundable at some designated time period in the future. 
         [0024]    In order to transfer ownership of the home  16  from the purchasing entity to the home purchaser  14 , an equity amount of $100,000 must eventually be paid by the home purchaser to the purchasing entity  12 . The home purchaser may pay the equity amount in one of several ways. First, the home purchaser may pay more than the monthly rent to the purchasing entity (e.g., more than the $100 monthly rent). For each dollar paid above the monthly rent, a dollar is credited to an equity balance account. Thus, in the example of the monthly rent of $100, if the home purchaser  14  pays $110 dollars, the additional $10 above the monthly rent is credited to the equity balance account  58 . 
         [0025]    It should be understood at the time of the purchase of the home  16 , the purchasing entity  12  owns the home and the home purchaser  14  does not have an ownership stake in the home. The partnership between the home purchaser and the purchasing entity provides a contractual relationship in which the home purchaser may occupy the home (e.g., rent the home). Ownership in the home is acquired by payment into the equity balance account. In the preferred embodiment of the present invention, ownership is acquired once full payment on the balance has been made within the equity balance account. However, in an alternate embodiment of the present invention, fractional ownership may be obtained in relation to the amount of equity within the equity balance account. 
         [0026]    The home purchaser  14  may also credit the equity balance account  58  in another way. For each transaction with one of the partnership entities  18 , partnership points are awarded to the home purchaser. These partnership points are associated with the amount or type of purchase of the services or goods by the home purchaser from a particular partnership entity. For example, every month the home purchaser must pay an insurance premium for the home purchaser&#39;s automobile. If the home purchaser purchases automobile insurance from the insurance company  24 , partnership points are associated with each premium amount paid. For example, if the home purchaser pays $100 per month for automobile insurance for one automobile, 10 partnership points may be awarded to the home purchaser. If the home purchaser pays $200 per month for insuring two automobiles, 20 partnership points may be awarded to the home purchaser. 
         [0027]    Thus, for each purchase of goods or services by the home purchaser  14  from any of the partnership entities  18 , partnership points are awarded to the home purchaser. Each partnership entity that receives a purchase from the home purchaser, determines the amount of the purchase, correlates the purchase with a specified amount of partnership points and communicates with the partnership interface  60 . The partnership entity provides the partnership interface  60  with the amount of points awarded to the home purchaser  14 . 
         [0028]    Upon receipt of the partnership points by the partnership interface  60 , the partnership interface  60  allocates the rewarded partnership points to the point accumulator  56 . At an established periodic time period or automatically when points are received in the point accumulator, the computer  52  converts the partnership points into an established amount of equity to be credited to the equity balance account  58 . For example, for each ten partnership points awarded to the home purchaser  14 , a dollar amount of equity may be credited to the home purchaser&#39;s equity balance account  58 . 
         [0029]    Thus, purchases by the home purchaser  14  are indirectly credited to the equity balance account  56 . The home purchaser is then able to establish equity in the home purchase through these transactions. Additionally, the home purchaser may pay fees  12  directly into the equity balance account by paying more than the monthly rent. 
         [0030]    Additionally, with the purchase of each service and good by the home purchaser  14  from one of the partnership entities  18 , the partnership entity pays a partnership transaction fee to the purchasing entity  12 . This partnership transaction fee may be based on the amount of the purchase by the home purchaser. Thus, the purchasing entity receives revenue from two sources. First, the monthly rent is paid each month by the home purchaser. Additionally, the purchasing entity may charge transaction fees (e.g., ATM fees), account maintenance fees and service fees to the home purchaser. In addition, the purchasing entity receives partnership transaction fees from each of the partnership entities. However, unlike current loan programs, the home purchaser  14  pays no interest on a loan. 
         [0031]    Each partnership entity  18  is willing to pay the partnership transaction fee to the purchasing entity  12  in order to encourage the home purchaser to purchase the goods and services from one of the partnership entities. In one embodiment of the present invention, the partnership entity may advertise itself as a part of a home purchasing alliance with a name or logo advertising it as a member of the alliance which awards partnership points to the equity balance account for a particular purchasing entity. 
         [0032]    In one embodiment of the present invention, a home equity loan based on the balance of the equity balance account  58  may be given to the home purchaser  14 , if desired. For example, the home purchaser may have a balance of $10000 in the home purchaser&#39;s equity balance account  58 . The home purchaser may desire to obtain a loan on a fraction of the balance within the equity balance account, e.g., $1000. The purchasing entity  12  may then provide a $1000 equity loan to the home purchaser. The $1000 may be subtracted from the equity balance account, thereby providing a balance of $9000. The home purchaser may then pay additional fees directly to the purchasing entity  12  or purchase services or goods through the partnership entities as discussed above. The home purchaser may elect to pay more than the monthly fee to re-establish the original equity balance within the equity balance account. 
         [0033]    The monthly rent paid by the home purchaser allows the home purchaser to occupy the home  16 . However, in an alternate embodiment, the monthly rent may also allow the home purchaser to rent the home to another. The rental agreement between the home purchaser and a renter is distinct from the contractual agreement between the purchasing entity and the home purchaser. Thus, the home purchaser may rent to a third party at a rental fee different or the same rate as the monthly rent paid by the home purchaser to the purchasing entity  12 . 
         [0034]      FIGS. 3A and 3B  are flow charts outlining the steps for acquiring a home  16  by a home purchaser  14  according to the teachings of the present invention. With reference to  FIGS. 1-3 , the method will now be explained. The method begins with step  100  where a home purchaser  14 , desiring to obtain ownership of a home  16 , establishes a partnership with the purchasing entity  12 . In the partnership contractual agreement, the purchasing entity agrees to purchase the home and rent the home to the home purchaser  14 . A monthly rent is then established for which the home purchaser agrees to pay to live in the home. For example, a home may cost $100,000 and a monthly rent of $100 may be agreed upon by the home purchaser to allow occupancy of the home purchaser of the home. The monthly rent of $100 merely allows the home purchaser to occupy the home. The partnership between the home purchaser and the purchasing entity provides a contractual relationship in which the home purchaser may occupy the home (e.g., rent the home). Ownership in the home is acquired by payment into the equity balance account. 
         [0035]    In step  102 , upon establishing a partnership between the purchasing entity  12  and the home purchaser  14 , the purchasing entity  12  purchases the home  16 . The purchasing entity may purchase the home or secure a loan to purchase the home, or obtain investment funding from another source. Thus, originally, ownership resides with the purchasing entity or other designated entity of the purchasing entity. 
         [0036]    Next, in step  104 , the home purchaser  14  may optionally provide a down payment to the purchasing entity  12  which may be credited to the equity balance account  58 . The method then moves to step  106  where a monthly rent is establish. In order to continue the partnership and allow the home purchaser or other designated person to occupy the home  16 , the home purchaser pays the monthly rent to the purchasing entity  12 . Alternately, rent may be paid at any agreed upon rate and time period (e.g., yearly lump sum). 
         [0037]    In step  108 , the home purchaser, at the agreed designated time period, pays the rent to the purchasing entity  12 . It should be understood that this rent does not provide any equity or credit to the equity balance account  58 . Rather, the rent merely allows the home purchaser or other designated party to occupy the home  16 . 
         [0038]    In order to acquire the home  16  by the home purchaser  14 , the purchase price or other designated amount for determining the equity in the home must be paid by the home purchaser to the purchasing entity  12 . For example, if the purchasing entity  12  purchased the home for $100,000, the home purchaser may be required to pay $100,000 into the equity balance account  58  to acquire the home. In step  110 , the home purchaser optionally pays more than the $100 monthly rent to the purchasing entity. For each dollar paid above the monthly rent, a dollar is credited to an equity balance account. Thus, in the example of the monthly rent of $100, if the home purchaser  14  pays $110 dollars, the additional $10 above the monthly rent is credited to the equity balance account  58 . 
         [0039]    In step  112 , it is determined if the home purchaser optionally purchases goods or services from one of the plurality of partnership entities  18 . If it is determined that the home purchaser does not optionally purchase goods or services, the method moves to step  108 . 
         [0040]    However, in step  112 , if it is determined that the home purchaser optionally purchases goods or services from one of the plurality of partnership entities  18 , the method moves from step  112  to step  114  where it is determined the amount of partnership points which should be awarded for the transaction. The partnership points may be based on a specified dollar amount or type of transaction which is designated and agreed upon by the purchasing entity  12  and the specified partnership entity  18 . Thus, each partnership entity that receives a purchase from the home purchaser, determines the amount of the purchase, and correlates the purchase with a specified amount of partnership points. Next, in step  116 , the partnership entity  18  communicates with the partnership interface  60  and provides the amount of points awarded to the home purchaser  14 . In addition, with the purchase of each service and good by the home purchaser  14  from one of the partnership entities  18 , the partnership entity pays a partnership transaction fee to the purchasing entity  12 . This partnership transaction fee is based on the amount of the purchase by the home purchaser. Each partnership entity  18  is willing to pay the partnership transaction fee to the purchasing entity  12  in order to encourage the home purchaser to purchase the goods and services from one of the partnership entities. In one embodiment of the present invention, the partnership entity may advertise itself as a part of a home purchasing alliance with a name or logo advertising it as a member which awards partnership points to the equity balance account from a particular purchasing entity. 
         [0041]    The method then moves to step  118  where, upon receipt of the partnership points by the partnership interface  60 , the partnership interface allots the rewarded partnership points to the point accumulator  56 . In step  120 , at an established periodic time period or automatically when points are received in the point accumulator, the computer  52  converts the partnership points into equity within the equity balance account  58 , thereby providing credit within the account  58 . In one embodiment, the equity balance account may be associated directly with points only. For example, total ownership of the home may require 10,000 points. Points accumulated may be credited to the balance. Thus, if 10 partnership points are awarded for a particular transaction, 10 points are credited to the account. In another embodiment, the points may be equated to a specified dollar amount within the equity balance account. For example, for each 10 partnership points awarded to the home purchaser  14 , a dollar may be credited to the home purchaser&#39;s equity balance account  58 . Thus, purchases by the home purchaser  14  provide credit to the equity balance account  56 . The home purchaser is then able to establish equity in the home purchase by purchasing goods or services from partnership entities  18 . Next, in step  122 , it is determined if the balance of the equity balance account equals the determined equity amount necessary to obtain ownership of the home by the home purchaser. If it is determined that the balance of the equity balance account is not sufficient to obtain ownership, the method then returns to step  108 . 
         [0042]    However, in step  122 , if it is determined that the amount in the equity balance account is sufficient to obtain ownership, the method moves to step  124  where total ownership (i.e., title) is given to the home purchaser  14 . At this point, the home purchaser obtains full ownership of the home  16  and is not required to pay any more rent. 
         [0043]      FIGS. 4A-4C  are flow charts outlining the steps for obtaining a home equity loan within the financial arrangement system  10  in an alternate embodiment of the present invention. With reference to  FIGS. 1-4 , the method will now be explained. The method begins with step  200  where a home purchaser  14 , desiring to obtain ownership of a home  16 , establishes a contractual partnership with the purchasing entity  12 . In the partnership agreement, the purchasing entity agrees to purchase the home and rent the home to the home purchase  14 . The partnership between the home purchaser and the purchasing entity provides a contractual relationship in which the home purchaser may occupy the home (e.g., rent the home). Ownership in the home is acquired by payment into the equity balance account. 
         [0044]    In step  202 , upon establishing a partnership between the purchasing entity  12  and the home purchaser  14 , the purchasing entity  12  purchases the home  16 . The purchasing entity may purchase the home or secure a loan to purchase the home, or obtain investment funding from another source. Thus, originally, ownership resides with the purchasing entity or other designated entity of the purchasing entity. 
         [0045]    Next, in step  204 , the home purchaser  14  may optionally provide a down payment to the purchasing entity  12  which may be credited to the equity balance account  58 . The method then moves to step  206  where a monthly rent is established. In order to continue the partnership and allow the home purchaser or other designated person to occupy the home  16 , the home purchaser  14  pays the monthly rent to the purchasing entity  12 . Alternately, rent may be paid at any agreed upon rate and time period (e.g., yearly lump sum). 
         [0046]    In step  208 , the home purchaser, at the agreed designated time period, pays the rent to the purchasing entity  12 . It should be understood that this rent does not provide any equity or credit to the equity balance account  58 . Rather, the rent merely allows the home purchaser or other designated party to occupy the home  16 . 
         [0047]    Next, in step  210 , the home purchaser optionally pays fees in addition to the rent, which are credited to the equity balance account and/or purchases goods or services from one of the partnership entities  18 , which also credits the equity balance account. In step  212 , an equity balance is accumulated in the equity balance account from either/or credit from purchases with partnership entities or payment to the equity balance account. The method then moves to step  214 , where the home purchaser  14  desires to obtain an equity loan based on the accumulated equity in the equity balance account. The purchasing entity  12 , in step  216 , provides a loan of the agreed amount from the equity balance account to the home purchaser. 
         [0048]    The method then moves to step  218 , where the home purchaser, at the agreed designated time period, pays the rent to the purchasing entity  12 . The home purchaser may also optionally pay additional fees above the rent which is credited to the equity balance account. Next, in step  220 , it is determined if the home purchaser optionally purchases goods or services from one of the plurality of partnership entities  18 . If it is determined that the home purchaser does not optionally purchase goods or services, the method moves to step  218 . 
         [0049]    However, in step  220 , if it is determined that the home purchaser optionally purchases goods or services from one of the plurality of partnership entities  18 , the method moves from step  220  to step  222  where an amount of partnership points which should be awarded for the transaction is determined. The partnership points may be based on a dollar amount or a type of transaction, which is designated and agreed between the purchasing entity  12  and the specified partnership entity  18 . Thus, each partnership entity that receives a purchase from the home purchaser, determines the amount of the purchase, correlates the purchase with a specified amount of partnership points. Next, in step  224 , the partnership entity  18  communicates with the partnership interface  60  and provides the amount of points awarded to the home purchaser  14 . In addition, with the purchase of each service and good by the home purchaser  14  from one of the partnership entities  18 , the partnership entity pays a partnership transaction fee to the purchasing entity  12 . This partnership transaction fee is based on the amount of the purchase by the home purchaser. Each partnership entity  18  is willing to pay the partnership transaction fee to the purchasing entity  12  in order to encourage the home purchaser to purchase the goods and services from one of the partnership entities. In one embodiment of the present invention, the partnership entity may advertise itself as a part of a home purchasing alliance or network with a name or logo advertising it as a member who awards partnership points to the equity balance account from a particular purchasing entity. 
         [0050]    The method then moves to step  226  where, upon receipt of the partnership points by the partnership interface  60 , the partnership interface allots the rewarded partnership points to the point accumulator  56 . In step  228 , at an established periodic time period or automatically when points are received in the point accumulator, the computer  52  converts the partnership points into equity credited to the equity balance account  58 . In one embodiment, the equity balance account may be associated directly with points only. For example, total ownership of the home may require 10,000 points. Points accumulated may be credited to the balance. Thus, if 10 partnership points are awarded for a particular transaction, 10 points are credited to the account. In another embodiment, the points may be equated to a specified dollar amount within the equity balance account. For example, for each 10 partnership points awarded to the home purchaser  14 , a dollar may be credited to the home purchaser&#39;s equity balance account  58 . Thus, purchases by the home purchaser  14  provide credit to the equity balance account  56 . The home purchaser is then able to establish equity in the home purchase by purchasing goods or services from partnership entities  18 . Next, in step  230 , it is determined if the balance of the equity balance account equals the determined equity amount necessary to obtain ownership of the home by the home purchaser. If it is determined that the balance of the equity balance account is not sufficient to obtain ownership, the method then returns to step  218 . 
         [0051]    However, in step  230 , if it is determined that the amount in the equity balance account is sufficient to obtain ownership, the method moves to step  232  where total ownership (i.e., title) is given to the home purchaser  14 . At this point, the home purchaser obtains full ownership of the home  16  and is not required to pay any more rent. 
         [0052]    The present invention may be utilized for the purchase of any asset.  FIG. 5  is a simplified block diagram of the components of a financial arrangement system  310  in an alternate embodiment of the present invention. The financial arrangement system includes a purchasing entity  312 , a purchaser  314  desiring to purchase an asset  316 , and a plurality of partnership entities  318 . The purchasing entity may be any financial institution (such as a bank, a mortgage company, lending institution, etc.), an individual investor, an investing company or any entity, individual, or individuals capable of purchasing the asset  316 . The purchaser is any person, persons or entity desiring to purchase or obtain the asset. 
         [0053]    The plurality of partnership entities  318  may include a consumer bank  320 , a retail store  322 , an insurance company  324 , an investment company  326 , a grocery store  328 , a gas station  330 , and a credit card company  332 . A partnership entity may be any entity providing services or goods either directly or indirectly to the purchaser or an associated entity of the purchaser (e.g., family). 
         [0054]      FIG. 6  is a simplified block diagram of a computing system  350  utilized in the financial arrangement system  310  in an alternate embodiment of the present invention. The computing system  350  is similar to the computing system  50  and includes a computer  352 , a memory unit  354 , a point accumulator  356 , an equity balance account  358 , and a partnership interface  360 . The partnership interface communicates with each of the partnership entities  318  (i.e., consumer bank  320 , retail store  322 , insurance company  324 , investment company  326 , grocery store  328 , gas station  330 , and credit card company  332 ). In addition, the computing system  350  communicates with the purchasing entity  312 . 
         [0055]    The computer  352  may be any computing device capable of performing accounting and computational processes commonly utilized in the financial industry. The memory unit allows the storage of data necessary for the computer to conduct the processes utilized in the present invention. The point accumulator  356  accounts for partnership points awarded to the purchaser  314  when conducting business with any one of the partnership entities  318 . The equity balance account  358  provides a balance on the equity held in the asset  316  by the purchaser  314 . The partnership interface  360  allows any of the partnership entities to communicate with the computer  352 . 
         [0056]    With reference to  FIGS. 5 and 6 , the operation of the financial arrangement system  310  will now be explained. First, the purchaser  314  desires to acquire the asset  316 . However, the purchaser has insufficient funds to purchase the asset. The purchaser then establishes a partnership with the purchasing entity  312 . The purchasing entity agrees to purchase the asset and allow the purchaser  314  to use the asset. For example, an asset may cost $10,000. A monthly fee may then be established for which the purchaser agrees to pay to use the asset. For example, a monthly fee of $10 may be agreed upon by the purchaser to utilize the asset. The monthly fee of $100 merely allows the purchaser to utilize the asset. Alternatively, the fee allows any person or persons designated by the purchaser to use the asset, thereby allowing the purchaser to sublet the asset to a third party. The fee may be any form of payment, such as cash, any financial instrument, checks, shares, rent, or any tangible good or service. In an alternate embodiment of the present invention, the fee may be refundable. 
         [0057]    In order to transfer ownership of the asset  316  from the purchasing entity to the purchaser  314 , an equity amount of $10,000 must eventually be paid by the purchaser to the purchasing entity  312 . The purchaser may pay the equity amount in one of several ways. First, the purchaser may pay more than the monthly fee to the purchasing entity (e.g., more than the $10 monthly fee). For each dollar paid above the monthly fee, a dollar is credited to an equity balance account. Thus, in the example of the monthly fee of $10, if the purchaser  314  pays $11 dollars, the additional $1 above the monthly fee is credited to the equity balance account  358 . 
         [0058]    It should be understood at the time of the purchase of the asset  16 , the purchasing entity  312  owns the asset and the purchaser  314  does not have an ownership stake in the asset. The partnership between the purchaser and the purchasing entity provides a contractual relationship in which the purchaser may occupy the asset (e.g., rent the asset). Ownership in the asset is acquired by payment into the equity balance account. In the preferred embodiment of the present invention, ownership is acquired once full payment on the balance has been made within the equity balance account. However, in an alternate embodiment of the present invention, fractional ownership may be obtained in relation to the amount of equity within the equity balance account. 
         [0059]    The purchaser  314  may also credit the equity balance account  358  in another way. For each transaction with one of the partnership entities  318 , partnership points are awarded to the purchaser. These partnership points are associated with the amount or type of purchase of the services or goods by the purchaser from a particular partnership entity. For example, every month the purchaser must pay an insurance premium for the purchaser&#39;s automobile. If the purchaser purchases automobile insurance from the insurance company  324 , partnership points are associated with each premium amount paid. For example, if the purchaser pays $10 per month for automobile insurance for one automobile, 10 partnership points may be awarded to the purchaser. If the purchaser pays $20 per month for insuring two automobiles, 20 partnership points may be awarded to the purchaser. 
         [0060]    Thus, for each purchase of goods or services by the purchaser  14  from any of the partnership entities  318 , partnership points are awarded to the purchaser. Each partnership entity that receives a purchase from the purchaser, determines the amount of the purchase, correlates the purchase with a specified amount of partnership points and communicates with the partnership interface  360 . The partnership entity provides the partnership interface  360  with the amount of points awarded to the purchaser  314 . 
         [0061]    Upon receipt of the partnership points by the partnership interface  360 , the partnership interface  360  allocates the rewarded partnership points to the point accumulator  356 . At an established periodic time period or automatically when points are received in the point accumulator, the computer  352  converts the partnership points into an established amount of equity to be credited to the equity balance account  358 . For example, for each ten partnership points awarded to the purchaser  314 , a dollar amount of equity may be credited to the purchaser&#39;s equity balance account  358 . 
         [0062]    Thus, purchases by the purchaser  314  are indirectly credited to the equity balance account  356 . The purchaser is then able to establish equity in the asset purchase through these transactions. Additionally, the purchaser may pay fees  312  directly into the equity balance account by paying more than the monthly fee. 
         [0063]    Additionally, with the purchase of each service and good by the purchaser  314  from one of the partnership entities  318 , the partnership entity pays a partnership transaction fee to the purchasing entity  312 . This partnership transaction fee may be based on the amount of the purchase by the purchaser. Thus, the purchasing entity receives revenue from two sources. First, the monthly fee is paid each month by the purchaser. Additionally, the purchasing entity may charge transaction fees (e.g., ATM fees), account maintenance fees and service fees to the purchaser. In addition, the purchasing entity receives partnership transaction fees from each of the partnership entities. However, unlike current loan programs, the purchaser  14  pays no interest on a loan. 
         [0064]    Each partnership entity  18  is willing to pay the partnership transaction fee to the purchasing entity  312  in order to encourage the purchaser to purchase the goods and services from one of the partnership entities. In one embodiment of the present invention, the partnership entity may advertise itself as a part of an asset purchasing alliance with a name or logo advertising it as a member of the alliance which awards partnership points to the equity balance account for a particular purchasing entity. 
         [0065]    In one embodiment of the present invention, an asset equity loan based on the balance of the equity balance account  358  may be given to the purchaser  314 , if desired. For example, the purchaser may have a balance of $1,000 in the purchaser&#39;s equity balance account  358 . The purchaser may desire to obtain a loan on a fraction of the balance within the equity balance account, e.g., $100. The purchasing entity  312  may then provide a $100 equity loan to the purchaser. The $100 may be subtracted from the equity balance account, thereby providing a balance of $900. The purchaser may then pay additional fees directly to the purchasing entity  312  or purchase services or goods through the partnership entities as discussed above. The purchaser may elect to pay more than the monthly fee to re-establish the original equity balance within the equity balance account. 
         [0066]    The monthly fee paid by the purchaser allows the purchaser to occupy the asset  316 . However, in an alternate embodiment, the monthly fee may also allow the purchaser to sublet the asset to another. 
         [0067]      FIGS. 7A and 7B  are flow charts outlining the steps for acquiring an asset  316  by a purchaser  314  in an alternate embodiment of the present invention. With reference to  FIGS. 5-7 , the method will now be explained. The method begins with step  400  where a purchaser  314 , desiring to obtain ownership of an asset  316 , establishes a partnership with the purchasing entity  312 . In the partnership contractual agreement, the purchasing entity agrees to purchase the asset and rent the asset to the purchaser  314 . A monthly fee is then established for which the purchaser agrees to pay to utilize the asset. For example, an asset may cost $10,000 and a monthly fee of $10 may be agreed upon by the purchaser to utilize the asset. The monthly fee of $10 merely allows the purchaser to utilize the asset. The partnership between the purchaser and the purchasing entity provides a contractual relationship in which the purchaser may utilize the asset (e.g., rent the asset). Ownership in the asset is acquired by payment into the equity balance account. 
         [0068]    In step  402 , upon establishing a partnership between the purchasing entity  312  and the purchaser  314 , the purchasing entity  312  purchases the asset  316 . The purchasing entity may purchase the asset or secure a loan to purchase the asset, or obtain investment funding from another source. Thus, originally, ownership resides with the purchasing entity or other designated entity of the purchasing entity. 
         [0069]    Next, in step  404 , the asset purchaser  314  may optionally provide a down payment to the purchasing entity  312  which may be credited to the equity balance account  358 . The method then moves to step  406  where a monthly fee is establish. In order to continue the partnership and allow the purchaser or other designated person to utilize the asset  316 , the purchaser pays the monthly (or other designated time period) fee to the purchasing entity  312 . Alternately, the fee may be paid at any agreed upon rate and time period (e.g., yearly lump sum). 
         [0070]    In step  408 , the purchaser, at the agreed designated time period, pays the fee to the purchasing entity  312 . It should be understood that this fee does not provide any equity or credit to the equity balance account  58 . Rather, the fee merely allows the purchaser or other designated party to utilize the asset  16 . 
         [0071]    In order to acquire the asset  316  by the purchaser  314 , the purchase price or other designated amount for determining the equity in the asset must be paid by the purchaser to the purchasing entity  312 . For example, if the purchasing entity  312  purchased the asset for $10,000, the purchaser may be required to pay $10,000 into the equity balance account  58  to acquire the asset. In step  110 , the purchaser optionally pays more than the $10 monthly fee to the purchasing entity. For each dollar paid above the monthly fee, a dollar is credited to an equity balance account. Thus, in the example of the monthly fee of $100, if the purchaser  314  pays $110 dollars, the additional $10 above the monthly fee is credited to the equity balance account  358 . 
         [0072]    In step  412 , it is determined if the purchaser optionally purchases goods or services from one of the plurality of partnership entities  318 . If it is determined that the purchaser does not optionally purchase goods or services, the method moves to step  408 . 
         [0073]    However, in step  412 , if it is determined that the purchaser optionally purchases goods or services from one of the plurality of partnership entities  318 , the method moves from step  412  to step  414  where it is determined the amount of partnership points which should be awarded for the transaction. The partnership points may be based on a specified dollar amount or type of transaction which is designated and agreed upon by the purchasing entity  312  and the specified partnership entity  318 . Thus, each partnership entity that receives a purchase from the purchaser, determines the amount of the purchase, and correlates the purchase with a specified amount of partnership points. Next, in step  416 , the partnership entity  318  communicates with the partnership interface  360  and provides the amount of points awarded to the purchaser  314 . In addition, with the purchase of each service and good by the purchaser  314  from one of the partnership entities  318 , the partnership entity pays a partnership transaction fee to the purchasing entity  312 . This partnership transaction fee is based on the amount of the purchase by the purchaser. Each partnership entity  318  is willing to pay the partnership transaction fee to the purchasing entity  312  in order to encourage the purchaser to purchase the goods and services from one of the partnership entities. In one embodiment of the present invention, the partnership entity may advertise itself as a part of an asset purchasing alliance with a name or logo advertising it as a member which awards partnership points to the equity balance account from a particular purchasing entity. 
         [0074]    The method then moves to step  418  where, upon receipt of the partnership points by the partnership interface  360 , the partnership interface allots the rewarded partnership points to the point accumulator  356 . In step  420 , at an established periodic time period or automatically when points are received in the point accumulator, the computer  352  converts the partnership points into equity within the equity balance account  358 , thereby providing credit within the account  358 . In one embodiment, the equity balance account may be associated directly with points only. For example, total ownership of the asset may require 10,000 points. Points accumulated may be credited to the balance. Thus, if 10 partnership points are awarded for a particular transaction, 10 points are credited to the account. In another embodiment, the points may be equated to a specified dollar amount within the equity balance account. For example, for each 10 partnership points awarded to the purchaser  314 , a dollar may be credited to the purchaser&#39;s equity balance account  358 . Thus, purchases by the purchaser  314  provide credit to the equity balance account  356 . The purchaser is then able to establish equity in the asset purchase by purchasing goods or services from partnership entities  318 . Next, in step  422 , it is determined if the balance of the equity balance account equals the determined equity amount necessary to obtain ownership of the asset by the purchaser. If it is determined that the balance of the equity balance account is not sufficient to obtain ownership, the method then returns to step  408 . 
         [0075]    However, in step  422 , if it is determined that the amount in the equity balance account is sufficient to obtain ownership, the method moves to step  424  where total ownership (i.e., title) is given to the purchaser  314 . At this point, the purchaser obtains full ownership of the asset  316  and is not required to pay any more fees. 
         [0076]      FIGS. 8A-8C  are flow charts outlining the steps for obtaining an asset equity loan within the financial arrangement system  310  in an alternate embodiment of the present invention. With reference to  FIGS. 5-8 , the method will now be explained. The method begins with step  500  where a purchaser  314 , desiring to obtain ownership of an asset  316 , establishes a contractual partnership with the purchasing entity  312 . In the partnership agreement, the purchasing entity agrees to purchase the asset and rent the asset to the asset purchase  314 . The partnership between the purchaser and the purchasing entity provides a contractual relationship in which the purchaser may occupy the asset (e.g., rent the asset). Ownership in the asset is acquired by payment into the equity balance account. 
         [0077]    In step  502 , upon establishing a partnership between the purchasing entity  312  and the purchaser  314 , the purchasing entity  312  purchases the asset  316 . The purchasing entity may purchase the asset or secure a loan to purchase the asset, or obtain investment funding from another source. Thus, originally, ownership resides with the purchasing entity or other designated entity of the purchasing entity. 
         [0078]    Next, in step  504 , the asset purchaser  314  may optionally provide a down payment to the purchasing entity  312  which may be credited to the equity balance account  358 . The method then moves to step  506  where a monthly fee is established. In order to continue the partnership and allow the purchaser or other designated person to utilize the asset  316 , the purchaser  314  pays the monthly fee to the purchasing entity  312 . Alternately, the fee may be paid at any agreed upon rate and time period (e.g., yearly lump sum). 
         [0079]    In step  508 , the purchaser, at the agreed designated time period, pays the fee to the purchasing entity  312 . It should be understood that this fee does not provide any equity or credit to the equity balance account  58 . Rather, the fee merely allows the purchaser or other designated party to occupy the asset  316 . 
         [0080]    Next, in step  510 , the purchaser optionally pays fees in addition to the designated fee, which are credited to the equity balance account and/or purchases goods or services from one of the partnership entities  318 , which also credits the equity balance account. In step  512 , an equity balance is accumulated in the equity balance account from either/or credit from purchases with partnership entities or payment to the equity balance account. The method then moves to step  514 , where the purchaser  314  desires to obtain an equity loan based on the accumulated equity in the equity balance account. The purchasing entity  312 , in step  516 , provides a loan of the agreed amount from the equity balance account to the purchaser. 
         [0081]    The method then moves to step  518 , where the purchaser, at the agreed designated time period, pays the designated fee to the purchasing entity  312 . The purchaser may also optionally pay additional fees above the designated fee which is credited to the equity balance account. Next, in step  520 , it is determined if the purchaser optionally purchases goods or services from one of the plurality of partnership entities  318 . If it is determined that the purchaser does not optionally purchase goods or services, the method moves to step  518 . 
         [0082]    However, in step  520 , if it is determined that the purchaser optionally purchases goods or services from one of the plurality of partnership entities  318 , the method moves from step  520  to step  522  where an amount of partnership points which should be awarded for the transaction is determined. The partnership points may be based on a dollar amount or a type of transaction, which is designated and agreed between the purchasing entity  312  and the specified partnership entity  318 . Thus, each partnership entity that receives a purchase from the purchaser, determines the amount of the purchase, correlates the purchase with a specified amount of partnership points. Next, in step  524 , the partnership entity  318  communicates with the partnership interface  360  and provides the amount of points awarded to the purchaser  314 . In addition, with the purchase of each service and good by the purchaser  314  from one of the partnership entities  318 , the partnership entity pays a partnership transaction fee to the purchasing entity  312 . This partnership transaction fee is based on the amount of the purchase by the purchaser. Each partnership entity  318  is willing to pay the partnership transaction fee to the purchasing entity  312  in order to encourage the purchaser to purchase the goods and services from one of the partnership entities. In one embodiment of the present invention, the partnership entity may advertise itself as a part of an asset purchasing alliance or network with a name or logo advertising it as a member who awards partnership points to the equity balance account from a particular purchasing entity. 
         [0083]    The method then moves to step  526  where, upon receipt of the partnership points by the partnership interface  360 , the partnership interface allots the rewarded partnership points to the point accumulator  356 . In step  528 , at an established periodic time period or automatically when points are received in the point accumulator, the computer  352  converts the partnership points into equity credited to the equity balance account  358 . In one embodiment, the equity balance account may be associated directly with points only. For example, total ownership of the asset may require 10,000 points. Points accumulated may be credited to the balance. Thus, if 10 partnership points are awarded for a particular transaction, 10 points are credited to the account. In another embodiment, the points may be equated to a specified dollar amount within the equity balance account. For example, for each 10 partnership points awarded to the purchaser  314 , a dollar may be credited to the purchaser&#39;s equity balance account  358 . Thus, purchases by the purchaser  314  provide credit to the equity balance account  356 . The purchaser is then able to establish equity in the asset purchase by purchasing goods or services from partnership entities  318 . Next, in step  530 , it is determined if the balance of the equity balance account equals the determined equity amount necessary to obtain ownership of the asset by the purchaser. If it is determined that the balance of the equity balance account is not sufficient to obtain ownership, the method then returns to step  218 . 
         [0084]    However, in step  530 , if it is determined that the amount in the equity balance account is sufficient to obtain ownership, the method moves to step  232  where total ownership (i.e., title) is given to the purchaser  314 . At this point, the purchaser obtains full ownership of the asset  316  and is not required to pay any more fees. 
         [0085]    It should be understood that the financial arrangement system  10  is distinctly different than the reward programs currently being utilized by airlines and credit card companies. Existing reward programs award points for each transaction to a reward point account. The purchaser may redeem these points for various items, such as free airline tickets or hotel rooms. However, the present invention provides a partnership with a purchaser where the purchasing entity actually purchases the asset and provides the asset, for a monthly fee, to the purchaser. Equity is gained through the partnership point program through the purchases of services and goods from the partnership entities as well as direct payment to the equity balance account. Thus, the present invention provides a partnership point program with an asset purchase program. 
         [0086]    The present invention may be utilized to obtain any asset. For example, a purchase may utilize the present invention to purchase land, vehicles, or other valuable assets that the purchaser is unable to purchase outright. 
         [0087]    The present invention provides leverage in obtaining equity in the asset through purchases by purchaser from the partnership entities. By utilizing this system and method, no interest is needed to be paid by the purchaser. Thus, without the onerous interest payments as well as the credit obtain through the purchaser&#39;s purchases, the purchaser is able to obtain ownership of the asset in a far shorter time period than conventional loans. Additionally, the transaction fees provide revenue to the purchasing entity which is not available in conventional loans. The partnership entities provide the transaction fees to the purchasing entity because consumers are more likely to purchase the services or goods. 
         [0088]    While the present invention is described herein with reference to illustrative embodiments for particular applications, it should be understood that the invention is not limited thereto. Those having ordinary skill in the art and access to the teachings provided herein will recognize additional modifications, applications, and embodiments within the scope thereof and additional fields in which the present invention would be of significant utility. 
         [0089]    Thus, the present invention has been described herein with reference to a particular embodiment for a particular application. Those having ordinary skill in the art and access to the present teachings will recognize additional modifications, applications and embodiments within the scope thereof. 
         [0090]    It is therefore intended by the appended claims to cover any and all such applications, modifications and embodiments within the scope of the present invention.