Lyn,

Crowd sourcing in real estate happens to be a tool that has been used to buy blighted neighborhoods and restoring them.  It does work if done properly with a legal contract.  Ron spoke at one of those meetings.  Buying a piece of real estate becomes similar to a REIT, and it does have to meet those types of legal requirements.

I remember some time back when, Erin Bates the daughter of Belinda Spillman wrote about crowd-sourcing as a method of home ownership.  Not sure where that conversation led but maybe one of them could make a return visit to AR to give us an update(if any).  Besides it would be nice to see some previously active ActiveRain members.  

 My first question is what's in it for them? 

#2 - They'll be LEASING the property to the buyer. 

#3 - Who determines if the property increases in value or decreased in value?

I suggest using Ribbon, paying 1.5% fee for them to pay cash while you sell your house and later Close on the purchase. MOST buyers are putting the 1.5% (or at least half of it) on the sellers to pay as Closing costs. It's a win-win for everyone - buyers & sellers. 

OH and buyers actually DO have OWNERSHIP!!

I didn't read the entire article but it appears to be another way of equity sharing. 

My first thought is:
The big print giveth and the small print taketh away.  I haven't read the small print. 

 Jane’s 5% ownership of the partnership that owns her dream home does not automatically give Jane the right to inhabit the property. Jane signs a lease with the partnership to inhabit the home. 

Very interesting -  I like the concept.  And a Seller should have no issues as they're getting an all cash offer.  Win Win

Thinking outside the box sometimes pays off better than within the box

crowd sourcing your home purchase.  I'm not sure a seller would take that offer.  I wouldn't.

 Well, it is an interesting concept and useful for the right buyer. I can see that they make their money by leasing the buyer the property but I would have concerns about the improvements and upkeep. It said they use a 3rd party to provide property management services. I would hate to have to schedule repairs to my home and get someone else's approval. I imagine they would only approve structural issues for joint cost. The rest are likely up to the leasor yet Fleq reaps the rewards of the increase of value. 

That being said, it has its potential upsides. I wonder how you move out? Do they buy out your equity after you give 30 days of notice or do they make you wait until it is sold?

I didn't read the entire article but it's an intriguing concept. I wonder how well it's working and what, if any issues have come up in any transactions?

Jeff

Very interesting. I'm with Carol Williams on this one, I want the fine print.

Also, I need to talk to a couple buyer/seller agents that have successfully completed a transaction this way.

And also remember it has to appraise for them to let you rent it!

Oh boy, let's hope this does not become popular.  It seems to me that it is an equity/ownership model. Other companies are doing this.  

Owning a very small percentage of interest in a home is not the traditional method of home ownership. More like leasing.

 A fancy rent to own concept where you provide equity, not a security deposit, and get the same benefits as a renter. I bet the fine print is loaded with the larger equity stake having some onerous rights.

That is an interesting option and didn't have the word Bitcoin in it anywhere.

For many years Reverse Mortgages have been available for home purchases, where houses are acquired at about 65% of market value and no mortgage payment. And still few takers.

All we tend to do is hear and see with the optics of the skeptic.   When it comes to Crowd Funding, accountability may be hard to impose. 

 This leaves me with more questions! I'm sure it could work for some but, is it the best thing for them?

Is a mortgage by a different name not still a mortgage?

Seems unnecessarily complicated, at least at first glance.  I'd like to know more.  It does seem like it would appeal to that millenial crowd.

Let us know when this works for your next home purchase.

Interesting concept, but it brings up a lot of questions.  I'd be worried about the security of being able to stay over the long run.

Sounds a bit like co-op ownership. It might work to put some people in homes that have limited finances. However, I would examine the Joint Venture agreement VERY carefully. There are so many unknowns, e.g. amount of membership fee, who determines "share price" and what if someon else comes in and offers to buy out resident renter at a higher price? The association may choose to go with that to optimize its profits for the other equity holders.