{"id":1805,"date":"2007-08-14T12:51:39","date_gmt":"2007-08-14T19:51:39","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=1805"},"modified":"2007-08-14T13:47:20","modified_gmt":"2007-08-14T20:47:20","slug":"its-scary-outside-of-the-box","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1805\/its-scary-outside-of-the-box\/","title":{"rendered":"It’s Scary Outside of the Box…"},"content":{"rendered":"

\"mark-cuban.jpg\"Recently, Realtor Genius<\/a> was called naive for suggesting that actual solutions be provided for the small portion of the market that we call “sub prime<\/a>.” So, I’ve had my ears\/eyes perked for solutions to the sub prime mess that I could share with everyone here… <\/p>\n

Yesterday, I read on Mark Cuban’s blog (he’s the Dallas Maverick’s owner, genius business man, billiionaire of Broadcast.com, Web 2.0 savvy, worked at DQ for one day, and is NOT a Realtor) about his idea for how to break the “Boom Bust” cycle of Real Estate. I’m not a Realtor, but I really want to hear everyone’s take <\/strong>on this inventive idea<\/a>… to me, it’s scary outside of the box!
\n<\/em>
\n—–<\/p>\n

Why can’t home owners sell some percentage of equity in their homes on a listed exchange ? Why can’t I “Take My House Public?”<\/p>\n

Why not create a market or exchange where homeowners can sell equity in their homes ?<\/p>\n

The rules could be very eimple
\n1. The house is appraised by a company approved by the exchange that lists the houses.
\n2. “Shares” are set with a Par Value of 10pct of the appraised value. For a 100k dollar house, there are 10 shares potentially available. However at no point in time can more than 40pct of the “shares” in a home be sold. We dont want the opportunity for “hostile takeovers”
\n3. The price of the shares will of course be set by the market. In a hot market it will be set above par, in a tough market like today, it will sell below Par.
\n4. All Proceeds from the sale of shares MUST be used to pay down any debt on the home.<\/p>\n

This is the key element of this approach. By selling equity in a home, the buyer gets an asset based security that will move up and down with the market. If this market is big enough, there should be enough liquidity to move in and out of positions.<\/p>\n

The seller receives cash that can be used to pay down the debt and thereby reduce his\/her monthly payments. The seller loses a part of the upside if the market Read more<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Recently, Realtor Genius was called naive for suggesting that actual solutions be provided for the small portion of the market that we call “sub prime.” So, I’ve had my ears\/eyes perked for solutions to the sub prime mess that I could share with everyone here… Yesterday, I read on Mark Cuban’s blog (he’s the Dallas […]<\/p>\n","protected":false},"author":23,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-1805","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2306,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2306\/our-program-is-so-simple-even-a-realtor-or-a-loan-originator-can-do-it\/","url_meta":{"origin":1805,"position":0},"title":"Our program is so simple even a Realtor or a Loan Originator can do it","author":"Jay Thompson","date":"December 2, 2007","format":false,"excerpt":"I\u2019m a firm believer that you can often learn as much by a bad example as you can a good one. Yesterday this little nugget slipped past my spam filters. Something, I don\u2019t know what, compelled me to read it. I need your help. Do you know someone that knows\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6887,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/6887\/has-real-estate-reality-taken-all-the-fizz-out-of-fsbos\/","url_meta":{"origin":1805,"position":1},"title":"Has real estate reality taken all the fizz out of FSBOs?","author":"Greg Swann","date":"February 12, 2009","format":false,"excerpt":"It's been fun dealing with years-old academic studies of the real estate market insisting that For-Sale-By-Owner marketing is just as good as listing with a Realtor. It might have been, during the boom, when any idiot could sell a house. But it's been kind of sad to watch people in\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":13529,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/13529\/its-415-pm-do-you-know-where-your-realtor-is-a-consumers-guide-to-using-social-media-the-supervise-your-goof-off-employee\/","url_meta":{"origin":1805,"position":2},"title":"It’s 4:15 pm. Do you know where your Realtor is? A consumer’s guide to using social media to supervise your goof-off employee.","author":"Greg Swann","date":"November 6, 2010","format":false,"excerpt":"Your mortgage lender just called. The appraiser is standing outside the home you're hoping to buy, but there is no key in the lockbox. The lender called you so that you could call your Realtor. Your Realtor in turn can call the listing agent, and then someone can get over\u2026","rel":"","context":"In "Abusing Twitter"","block_context":{"text":"Abusing Twitter","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/abusing-twitter\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1310,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1310\/open-letter-to-minneapolis-area-association-of-realtors-regards-rmls-ruling-13\/","url_meta":{"origin":1805,"position":3},"title":"Open Letter to Minneapolis Area Association of Realtors Regards RMLS Ruling 13","author":"Russell Shaw","date":"April 16, 2007","format":false,"excerpt":"The following was sent to me by Steve Westmark. He was the very first agent interviewed by Howard Brinton for what is now known as Starpower. He is a very nice man, who spends a great deal of his time (and money) working for Habitat For Humanity. He and the\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2644,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2644\/living-up-to-the-bloodhoundblog-mission-statement-were-everything-you-wish-were-in-realtor-magazine\/","url_meta":{"origin":1805,"position":4},"title":"Living up to the BloodhoundBlog mission statement: We’re everything you wish were in Realtor magazine","author":"Greg Swann","date":"February 23, 2008","format":false,"excerpt":"This is our mission statement:BloodhoundBlog is everything you wish were in Realtor magazine \u2014 but isn\u2019t.Damned if it ain't the gospel truth! Realtor Magazine does a cover story on real estate weblogging -- and none of the Bloodhounds are there. Not sour grapes. We're the big dogs in this menagerie\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2015,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2015\/announcing-the-phoenix-real-estate-technology-exchange-putting-flexmlss-feet-to-the-fire-so-you-dont-have-to\/","url_meta":{"origin":1805,"position":5},"title":"Announcing The Phoenix Real Estate Technology Exchange: Putting flexmls’s feet to the fire so you don’t have to…","author":"Greg Swann","date":"October 8, 2007","format":false,"excerpt":"As promised, this morning a cadre of Phoenix-area webloggers are launching The Phoenix Real Estate Technology Exchange. 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