Models For Partially Socializing Residential Housing

[josh]

Why I think it works out economically –
Professional influence will help with smart choices & provide subtle influence to improve the long term trajectory of properties. The virtual rent structure & ability to move around will encourage less virtual spending on residential storage of rarely used possessions. People who do the same maintenance tasks frequently/semi-pro are more and resource efficent.

Modern digital/delivery economy takes off a lot of location pressure.

So the main issue is making sure people work out lifestyles that they like with the right mix of privacy they need & socializing they want.

[josh]

Conceptually, the “head decision makers” at each property, with the most say over maintenance, upgrades, & tenants, are the people with the greatest equity stake in that particular property. But they can designate someone else as their local manager rep. Ideally people are hosting friends & family in conventional size structures. But looser arrangements should work out well too.

[josh]

My concept is that there are upper & lower bound limits on things like:

a)How much %equity is in my current property, versus all the properties I have lived in that are not yet transacted (or appraised?) versus % of equity in the general REIT fund. Within the upper & lower bound, individuals have choice.

b) Within upper & lower bounds they can adjust their montly contribution to living expense+investment as a function of current equity in the fund (mortgage only lets you pay more). Overall fund management is some function of elected BOD/mgmt/direct elections and can decide on strategies.

c) How much travel or main residence changes?

d) Where to live/pick

Investment return is not the main goal, but what’s in it for a pro investor?

a) They might believe the communal scheme is more efficient for residential return portion of their portfolio

b) Selling pressure is less in a slow market

c) Ability to fill multi-family has a different profile

d) Scale of property mgmt is better than most residential

[josh]

e) Within the REIT community, individual properties & biz with a development focus might agree to somehow showcase property features that are being planned or looked at for development at many other properties – some combination of a VR magazine & select tour visit opportunities by invitation. That could be a feature within the community that developers of any sort of residential plus feature & residents at large were positive about – an alternative to showcase conventions that serves a different set of interests with a more authentically lived in and usability focus.

[josh]

In general, GT corporations have faced & will continue to face intense spook efforts to steal anything of value that can be stolen & destroy the rest. The first choice of attack is replacing executives & owners with spooks. A special type of REIT can be part of a solution to making it harder to do that. Ownership can be tied to distributed equity, elections can be tied to ownership with special ability to electronically organize recalls. Other things can be invested in with the REIT itself as controlling interest.

There’s details to work out & other issues to solve, but the distributed equity could help.

[Josh SternModerator]

The “REIT” should be going a lot faster. Let’s see if we can apply a new layer of analysis to help generate better growth & financing by relating the concept to a mix of more familiar ideas.

There is a consortium that shares a lot of overhead in terms of admin, IT, accounts, & sourcing.

Within that efficient structure exist biz that are like

One or more Credit Unions which lend for property purchases, primarily residential and multi-family & residential development & they can sell securitized loan portfolios to outside investors/stakeholders as well as provide banking & financial services for customers

Some dynamic number of credentialed/approved remodeling & construction firms that sell specific services & take equity positions – which can be whole but are often fractional – in properties undergoing active development or contracting for long term general maintenance. Their income is from both sale of services & from flipping of equity states. The flipping can be an internal sale based on appraised values. They can sell minority states to outsiders as private equity investment and define individual governnance regimes describing equity payouts.

Residential & office tenants have individual contracts & situations which include a mix of equity investment (typically their equity in the kind of places they live or in a particular property where they are majority owner), tenant payment agreements which can be analyzed like a mix of mortgage payments & rental agreements & condo fees & scheduled investments in “The REIT” (which is technically shares of many different LLC). The overall situation & mix of tenants should allow for analysis that makes the terms from the POV of securitization more stable than a comparable mix of individual mortgages & multi-family unit/corporate financing.

The hope is that being leaner in every dimension supports faster growth.

[Josh SternModerator]

There is lots of anecdotal discussion of widespread attempts to block GT housing purchases. The Deep State concept is essentially mafia ownership of all property & sabotage of all indy efforts, so they are willing to operate at a loss in particular areas to support the overall agenda of denying alternatives.

I suggest the following strategy to increase the rates of success:

a) Keep plugging away with an advanced understanding of the unusual situation & difficulties
b) Offer discounts for quick action & private sale. Explain that these discounts are part of the biz model & not a scam or a ploy of any kind
c) Align finance pre-approval policies with models of the anticipating rates of ultimate agreement. If only 5% yield is there at a given stage, then plan for 20x the number of offers to reach the same level of ultimate capital outlay.
d) Offer attractive services & deals for individuals & families looking at relocation. That may matter more to their decision than price & it is not part of traditional real estate.
e) Model the factors that correlate with govt. control and devote correspondingly more effort to those avenues that will yield better rates of effort return, other factors being equal.

Competing in a bidding war by going up in price is also possible, but the strategies above are more strategic & profit generating for the overall biz.

[Josh SternModerator]

I’ve written a lot about how it’s easier to defend buildings with wide borders to 3rd party properties. And they give more room for other development agendas.

Other IoT points of interest:

Expensive wood trim is a concern because of how easy it is to damage using invasive IoT droids. Insurance claims would be difficult & the financial harm is enormous. I am in that situation

IoT can be used for non-invasive home inspections that can provide an alternative to traditional methods & sometimes get done faster, with or without homeowner notice/agreement (in reality the state is criminally doing this to all homes now).

[Josh SternModerator]

I’ve written a lot about my hopes for the “REIT” concept. And I’ve written about the need for GT “forts”.

In many cases, 4 people & a vehicle they operate with secure parking in property that has borders they can defend from neighbors who become full time FBI terrorists is something like a minimal structure for getting work/sleep done.

General point about the “REIT” is that the larger structure should be able to merge with most GT local structures if they start out in their own direction. If you need peers & a fort just to operate, then it’s better not wait for some kind salvation to reach your hamlet or rural delivery. Try to find the best matches you can locally to get started, assuming if things work out then you can keep moving to improve situations later.

Edit: Also, another key point of strategy: in an environment where spooks are working to prevent sales/closings. The key strategy for GT in crisis is to make fast purchases with cash & then refinance to a mortgage where that is desired for working capital after the property has closed. The bargaining position for the borrower is stronger after the fact than before.

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