Legal citizens wanting to become home-buying members, or wanting to pay off their residential homes, will register as singular or joint entities. They’ll then pay for a thorough background check performed by an investigative entity hired by the Club. If accepted, they’ll pay an entry fee, which will be used to maintain/expand the Club as well as to pay dividends to club partners.
Along with the entry fee, the members will also pay their first cycle-fee. The cycle fee is the amount that each member must contribute per year in order to advance the home-buying process for the membership—as it provides the main capital for the purchasing or building of new homes for members or for paying off the homes they already occupy. For new-home buyers/builders, this fee will be based upon the member’s home price range, which will be based upon his/her/their income level. The price range can be no more than 5 times the member’s annual household gross income; however, the member can set it at less than that. Thus, a married couple with a household income of $75,000 may set their price range at, maybe, $275,000 to $375,000, or less. Also, if we set the cycle-fee-payment scale at, maybe, .1% of the maximum home price ($375,000), the couple’s required cycle fee (RCF) would be no less than $375.00 annually. However the actual fee they pay can voluntarily be any amount above that if they wish to jump ahead on the home-buying list as well as accelerate the process for everyone in general. For home owners wanting to pay off existing mortgages or loans, the cycle fee will be based upon the remainder owed on the home.
The lowest home price range will begin at $25,000; however, the lowest cycle fee will be no less than $100 so that capital can be gained rapidly to accelerate the process. The highest price range will be $500,000. Those wanting more than that can start their own club.
A cycle will begin when a member pays the entry and first cycle-fee. Members, whether as singular or joint entities, may enter into only one cycle at a time. The cycle will end if said member decides to quit (opt out of) the Club, sells their space, or if the member reaches the top of the home-buyer list (“tops out”) and begins buying or paying off a home through the Club. All members opting or selling out will have all the money they paid in cycle fees (AACF) refunded. The entry fee will not be refunded after 30 days for those opting out, and never for those selling out. All members buying/building or paying off a home will have their AACF deducted from the remaining balance due.
When time draws near for a member to purchase an existing house or begin building a new one, the Club will help the member find one if he/she hasn't already or will help the member initiate the building process. For existing homes, the member will be required to have the home inspected, using an inspector recommended by the club. If the inspection yields acceptable results, the Club will negotiate a lump-sum deal with the seller within the Club member’s price range. If there are any closing costs incurred that, when added to the final cost, exceed the member's home price range, they will be paid by the member. And, of course, the member will be required to obtain homeowner’s insurance whether they buy, build, or are paying off.
When all loose ends are taken care of, the member will designate his/her monthly payment plan of 5, 10, 15 or 20 years. The Club and member will then enter into the final agreement regarding payment and non-payment policies.
Once the member’s signature is on the dotted line, he/she/they move into the existing home or begin building the new home. (Members paying off their existing loans or mortgages will simply pay them off and begin paying back the Club.) The AACF is used as the down payment. The member may then pay the minimum payments or as much as they can afford above that. The Club may foreclose for nonpayment and may sue for any unacceptable property alterations incurred upon foreclosure that decrease the value of the real estate.
Once multiple houses are purchased through the Club and the monthly house payments come in from the various members in various amounts, the spike in monetary growth will accelerate the home-buying process in a geometric manner.
Once a members pays off the Club, he/she may then enter into a new cycle by paying the entry fee and RCF. This would encourage those wanting to purchase multiple homes to set their monthly payments at the maximum affordable amount.