My idea is some non profit gets setup to manage a system where someone announces their mortgage and then they can have friends, family and second and third degree friends and families finance your loan.
Let’s say someone buys a $250k house. Each person puts in $100 and then they get a receipt showing they are owed $200 against their 1/2500th share of the mortgage. Repayments are paid the $200 in return in a random time frame of between the first month to the last month 30 years later. Repayment is completely randomized, meaning you could get your money back really soon… Or a really long time from then.
There are a lot of other ways you could build on this idea.
Former mortgage broker here. This is basically a credit union, or a private lender.
Now I’ll explain why those exist, but your idea doesn’t exist.
Repayments are paid the $200 in return in a random time frame of between the first month to the last month 30 years later.
Every year that $200 loses 2.2% of it’s value. So you have to charge interest or else people would be signing up to lose money (buying power).
But that creates a new problem, who gets paid when?
Assuming 5.5% interest (low end of rates right now) and a 25 year amortization, the people who got paid out at year 1 would receive $207 while the people paid out at year 25 would get $788(~$450 of buying power though).
Than there’s the aspect of insurance. Your mandatory mortgage insurance covers the bank, not you. So now you need to find an insurer that can work with up to 2500 beneficiaries.
Or how bout when the bank forecloses for non payment?
It gets messy really fast and I’m just scratching the surface.
I think you may have jumped the shark with the “loses 2.2% of its value” comment. I feel like most of the world doesn’t understand inflation / the difference of real vs nominal dollars.
I tried explaining it to someone once and they kept just saying, “but the money in my bank account is real”.
If you take this idea a little further, you’ll eventually get a credit union.
No quicker way to negatively influence a friendship than loaning money. Doubly so with the expectation of interest.
That’s good, but for it to scale everyone should participate. Maybe we could manage it centrally to maximise the outcome, I guess maybe the state could do that? Kinda like taxes? And then the government could buy or build the house and give it to whoever asked for it… Wait a second!
When people describe what they hate about communism and socialism, they often describe capitalism.
A lot of people would be in favour of communism or socialism, they just don’t know it, due to propaganda against it.
A great example for this are insurances. If you’re not from the US, you pay a small amount of money or portion of your income and never have to worry about medical expenses again.
This concept can be applied to virtually anything! Food, water, shelter, you name it!
Not the same, but we had a crowd source house insurance setup. Basically, all the costs of the year were added up and then split between members. It was about half the cost of regular insurance.
Isn’t this what jeff Bezos is doing with fractional real estate investment, except evil?
Not pooping on the idea, I would totally toss money towards a fractional mortgage to help someone else get a home, just noting how the upside down universe version of this idea is already out there.
sauc: https://arrived.com/
There are a lot of corporations doing this with investments too.
If you asked everyone in the US to give you one dollar you could buy a pretty nice house
I asked this baby in this stupid rolling cart thing for a dollar and all it did was cry, and the adult lady pushing the stupid cart thing punched me in the face, so I didn’t get a chance to ask her. Then everyone in the area chased me out of town. This is proving to be a difficult task already. Will update further. Stay tuned.
Tysm keep me posted
