Search Images Maps Play YouTube News Gmail Drive More »
Advanced Patent Search | Web History | Sign in

Patents

Methods and investment instruments for investing in real estate are described wherein a portfolio of investment real estate is divided into a plurality of tenant-in-common deeds of predetermined denominations, and which are subject to a master agreement and master lease to form "deedshares." Holders of the deedshares receive a guaranteed income stream from the master lease and yearly depreciation, without having to maintain or manage the real estate. The holders of deedshares are subject, under the master agreement, to a mechanism that enables the master tenant to purchase, or arrange for the purchase of the deedshares at fair market value (or some other calculable value) at the end of a specified term. Because the deedshares qualify as interests in investment real estate, they are eligible for tax-deferred treatment under .sctn.1031 of the Internal Revenue Code.

Inventors: Neal Roberts, Michael Franklin, Charles Runnels, James Andrews
Original Assignee: American Master Lease, L.L.C.
Primary Examiner: Pedro Kanof
Current U.S. Classification: 705/36.00T; 705/35; 705/37; 705/38
International Classification: G06F 1760

View patent at USPTO
Search USPTO Assignment Database

Citations

Cited PatentFiling dateIssue dateOriginal AssigneeTitle
US5262942Jun 5, 1990Nov 16, 1993Bankers Trust CompanyFinancial transaction network
US5500793Sep 2, 1993Mar 19, 1996EquitradeComputerized system for developing multi-party property equity exchange scenarios
US5802501Jan 12, 1994Sep 1, 1998Graff/Ross HoldingsSystem and methods for computing to support decomposing property into separately valued components
US5873071May 15, 1997Feb 16, 1999ITG Inc.Computer method and system for intermediated exchange of commodities
US5950175Oct 14, 1994Sep 7, 1999Merrill Lynch, Pierce, Fenner & Smith IncorporatedSystem for managing real estate SWAP accounts
US6192347Aug 14, 1998Feb 20, 2001Graff/Ross HoldingsSystem and methods for computing to support decomposing property into separately valued components

Referenced by

Citing PatentFiling dateIssue dateOriginal AssigneeTitle
US6446047May 4, 1999Sep 3, 2002Municipal bond apparatus, product and method
US6615187Feb 9, 2000Sep 2, 2003Method of securitizing and trading real estate brokerage options
US6711554Dec 30, 1999Mar 23, 2004Method and system for managing and preparing documentation for real estate transactions
US6871189Aug 30, 2002Mar 22, 2005Municipal bond apparatus product and method
US6985886Aug 24, 2000Jan 10, 2006EverbankMethod and apparatus for a mortgage loan management system
US7315836Jan 11, 2000Jan 1, 2008TEQ DevelopmentMethod for obtaining and allocating investment income based on the capitalization of intellectual property
US7366697Mar 30, 2001Apr 29, 2008CheckFree CorporationElectronic bill presentment with bill categorization
US7415471Nov 30, 2001Aug 19, 2008Midland Loan Services, Inc.Methods and systems for automated data collection and analysis for use in association with asset securitization
US7437322Jul 6, 2000Oct 14, 2008Prana Fund Manager, LLCManaging investment assets
US7523066Dec 18, 2001Apr 21, 2009General Electric Captical CorporationApparatus and method for facilitating communication for borrowers and investors regarding commercial mortgages
US7526446Jan 17, 2002Apr 28, 2009Algorithmics InternationalSystem and methods for valuing and managing the risk of credit instrument portfolios
US7529684Jun 19, 2007May 5, 2009TEQ DevelopmentMethod for obtaining and allocating investment income based on the capitalization of intellectual property
US7533118Dec 23, 2004May 12, 2009Morgan StanleyInvestment database application
US7636688Mar 30, 2001Dec 22, 2009Checkfree CorporationElectronic bill processing with multi-level bill information storage
US7668770Jun 5, 2007Feb 23, 2010TEQ DevelopmentMethod of repeatedly securitizing intellectual property assets and facilitating investments therein
US7693765Nov 30, 2005Apr 6, 2010System and method for creating electronic real estate registration
US7702585Nov 30, 2006Apr 20, 2010CheckFree CorporationMethods and systems for the determination and display of payment lead time in an electronic payment system
US7739180Jun 17, 2002Jun 15, 2010Digitech Information Systems, Inc.Method of managing financial instruments, equipment lease derivatives and other collateral instruments, data architecture, application and process program
US7742991Oct 6, 2003Jun 22, 2010Remmis Holding LLCMethod & system for managing and preparing documentation for real estate transactions
US7801739Nov 3, 2006Sep 21, 2010System, method and computer program product for facilitating a real estate exchange
US7814026Sep 19, 2008Oct 12, 2010Prana Fund Manager, LLCManaging investment assets
US7856394Aug 31, 2001Dec 21, 2010UBS AGComputer system and a method for managing a financial transaction
US7860781Jan 3, 2003Dec 28, 2010Midland Loan Services, Inc.Methods and systems for asset/loan management and processing
US7925572Aug 12, 2009Apr 12, 2011American Master Lease, L.L.C.Methods and investment instruments for performing tax-deferred real estate exchanges
US7933826Jun 28, 2001Apr 26, 2011CheckFree CorporationCheck metaphor for electronic payment authorization
US7949589Feb 22, 2005May 24, 2011Equity Street, LLCSystem and method for evaluating and managing participatory real estate investments and transactions
US7949606May 18, 2004May 24, 2011Intellectual property brokerage system and method
US8010457Oct 8, 2010Aug 30, 2011Prana Fund Manager, LLCManaging investment assets
US8078543May 10, 2010Dec 13, 2011Remmis Holding LLCMethod and system for managing and preparing documentation for real estate transactions
US8095422Mar 12, 2007Jan 10, 2012Openlane, Inc.Systems and methods for vehicle information management
US8145559Apr 8, 2011Mar 27, 2012American Master Lease, L.L.C.Methods and investment instruments for performing tax-deferred real estate exchanges
US8160944Apr 5, 2010Apr 17, 2012System and method for creating electronic real estate registration
US8175954Mar 16, 2000May 8, 2012Method and system for offering and managing an exchanging of property

Claims

1. A method of creating a real estate investment instrument adapted for performing tax-deferred exchanges comprising:

aggregating real property to form a real estate portfolio;
encumbering the property in the real estate portfolio with a master agreement; and
creating a plurality of deedshares by dividing title in the real estate portfolio into a plurality of tenant-in-common deeds of at least one predetermined denomination, each of the plurality of deedshares subject to a provision in the master agreement for reaggregating the plurality of tenant-in-common deeds after a specified interval.

2. The method of claim 1, wherein encumbering the property in the real estate portfolio with a master agreement further comprises encumbering the real property with a master lease to a master tenant who pays rent to holders of the deedshares.

3. The method of claim 2, wherein creating the plurality of deedshares further comprises structuring the provision to include a put provision that allows holders of the deedshares to force the master tenant to purchase the deedshares at a calculable value after the specified interval and a call provision that allows the master tenant to force holders of the deedshares to sell their deedshares to the master tenant at a calculable value after the specified interval.

4. The method of claim 2, wherein encumbering the real property in the real estate portfolio with a master agreement further comprises including a sublease provision in the master lease, enabling the master tenant to sublease the real estate.

5. The method of claim 2, wherein encumbering the real property in the real estate portfolio with a master agreement further comprises including a maintenance provision in the master lease, requiring the master tenant to maintain the real estate.

6. The method of claim 2, wherein encumbering the real property in the real estate portfolio with a master agreement further comprises including an insurance provision in the master lease, requiring the master tenant to insure the real estate.

7. The method of claim 2, wherein encumbering the real property in the real estate portfolio with a master agreement further comprises including a tax pro vision in the master lease, requiring the master tenant to pay taxes on the real estate.

8. The method of claim 2, wherein encumbering the real property in the real estate portfolio with a master agreement further comprises including an extended term provision in the master lease, designating that the master lease extends beyond the specified interval.

9. The method of claim 2, wherein encumbering the real property in the real estate portfolio with a master agreement further comprises including a guaranteed rent provision in the master lease, designating that the master tenant pay a predetermined guaranteed income to holders of the deedshares.

10. The method of claim 2, wherein encumbering the real property in the real estate portfolio with a master agreement further comprises including a credit rating provision in the master lease, requiring that the master tenant have a specified minimum credit rating.

11. A method of performing a tax-deferred exchange of investment real estate under .sctn.1031 of the Internal Revenue Code comprising:

transferring a first interest in investment real estate having a first value and being subject to a first debt from an exchanger to a third party;
using the third party to transfer title to the first interest in investment real estate to a buyer in exchange for money, proceeds of the transfer of the title to the first interest being held by the third party;
identifying deedshares having a second value equal to or greater than the first value and subject to a second debt equal to or greater than the first debt as a replacement property within a specified number of days of transferring title to the first interest in investment real estate, the deedshares comprising an undivided tenant-in-common interest in investment real estate that is subject to a master agreement including a provision reaggregating title to the investment real estate represented by the deedshares at a specified time;
closing the sale of the deedshares within a second specified number of days of transferring title to the first interest in investment real estate; and
transferring the deedshares and the second debt from the third party to the exchanger.

12. The method of claim 11, wherein identifying deedshares comprises identifying a combination of deedshares having different predetermined denominations that sum to the second value.

13. The method of claim 11, wherein identifying deedshares further comprises identifying deedshares subject to a master lease to a master tenant, and the master tenant pays rent to owners of the deedshares.

14. The method of claim 13, wherein identifying deedshares further comprises identifying deedshares subject to a provision for reaggregating title that comprises a put provision that allows the owners of the deedshares to force the master tenant to purchase the deedshares at a calculable value on or after the specified time, and a call provision that allows the master tenant to force the owners of the deedshares to sell their deedshares to the master tenant at a calculable value on or after the specified time.

15. The method of claim 13, wherein identifying deedshares further comprises identifying deedshares including a provision enabling the master tenant to sublease the real estate.

16. The method of claim 13, wherein identifying deedshares further comprises identifying deedshares including a provision requiring the master tenant to maintain the real estate.

17. The method of claim 13, wherein identifying deedshares further comprises identifying deedshares including a provision requiring the master tenant to insure the real estate.

18. The method of claim 13, wherein identifying deedshares further comprises identifying deedshares including a provision requiring the master tenant to pay taxes on the real estate.

19. The method of claim 13, wherein identifying deedshares further comprises identifying deedshares including a provision that the master lease extends beyond the specified interval.

20. The method of claim 13, wherein identifying deedshares further comprises identifying deedshares including a provision that requires the master tenant has a specified minimum credit rating.

21. The method of claim 13, wherein identifying deedshares further comprises identifying deedshares including a provision to appoint a real estate broker to sell the real estate after title to the real estate has been reaggregated at the specified time.

22. A method of creating a real estate investment instrument adapted for performing tax-deferred exchanges comprising:

acquiring real property;
encumbering the real property with a master agreement; and
creating a plurality of deedshares by dividing title in the real property into a plurality of tenant-in-common deeds of at least one predetermined denomination, each of the plurality of deedshares subject to a provision for reaggregating the plurality of tenant-in-common deeds after a specified interval.

23. The method of claim 22, wherein encumbering the real property with a master agreement further comprises encumbering the real property with a master lease to a master tenant who pays rent to holders of the deedshares.

24. The method of claim 23, wherein creating the plurality of deedshares further comprises structuring the provision to include a put provision that allows holders of the deedshares to force the master tenant to purchase the deedshares at a calculable value after the specified interval and a call provision that allows the master tenant to force holders of the deedshares to sell their deedshares to the master tenant at a calculable value after the specified interval.

25. The method of claim 23, wherein encumbering the real property with a master agreement further comprises including a sublease provision in the master lease, enabling the master tenant to sublease the real property.

26. The method of claim 23, wherein encumbering the real property with a master agreement further comprises including a maintenance provision in the master lease, requiring the master tenant to maintain the real property.

27. The method of claim 23, wherein encumbering the real property with a master agreement further comprises including an insurance provision in the master lease, requiring the master tenant to insure the real property.

28. The method of claim 23, wherein encumbering the real property with a master agreement further comprises including a tax provision in the master lease, requiring the master tenant to pay taxes on the real property.

29. The method of claim 23, wherein encumbering the real property with a master agreement further comprises including an extended term provision in the master lease, designating that the master lease extends beyond the specified interval.

30. The method of claim 23, wherein encumbering the real property with a master agreement further comprises including a guaranteed rent provision in the master lease, designating that the master tenant pay a predetermined guaranteed income to holders of the deedshares.

31. The method of claim 23, wherein encumbering the real property with a master agreement further comprises including a credit rating provision in the master lease, requiring that the master tenant have a specified minimum credit rating.

32. A method of creating a real estate investment instrument adapted for performing tax-deferred exchanges comprising:

acquiring real property;
encumbering the real property with a master agreement; and
using a computer to generate a plurality of deedshares by generating a plurality of tenant-in-common deeds of at least one predetermined denomination that divide title in the real property into a plurality of tenant-in-common interests, each of the plurality of tenant-in-common deeds being subject to a provision in the master agreement for reaggregating the plurality of tenant-in-common deeds after a specified interval.

33. The method of claim 32, wherein encumbering the real property with a master agreement further comprises encumbering the real property with a master lease to a master tenant who pays rent to holders of the deedshares.

34. The method of claim 33, wherein using a computer to generate the plurality of deedshares further comprises including in the master agreement a put provision that allows holders of the deedshares to force the master tenant to purchase the deedshares at a calculable value after the specified interval and a call provision that allows the master tenant to force holders of the deedshares to sell their deedshares to the master tenant at a calculable value after the specified interval.

35. The method of claim 33, wherein encumbering the real property with a master agreement further comprises including a sublease provision in the master lease, enabling the master tenant to sublease the real property.

36. The method of claim 33, wherein encumbering the real property with a master agreement further comprises including a maintenance provision in the master lease, requiring the master tenant to maintain the real property.

37. The method of claim 33, wherein encumbering the real property with a master agreement further comprises including an insurance provision in the master lease, requiring the master tenant to insure the real property.

38. The method of claim 33, wherein encumbering the real property with a master agreement further comprises including a tax provision in the master lease, requiring the master tenant to pay taxes on the real property.

39. The method of claim 33, wherein encumbering the real property with a master agreement further comprises including an extended term provision in the master lease, designating that the master lease extends beyond the specified interval.

40. The method of claim 33, wherein encumbering the real property with a master agreement further comprises including a guaranteed rent provision in the master lease, designating that the master tenant pay a predetermined guaranteed income to holders of the deedshares.

41. The method of claim 33, wherein encumbering the real property with a master agreement further comprises including a credit rating provision in the master lease, requiring that the master tenant have a specified minimum credit rating.

Drawings