My idea is some non profit gets setup to manage a system where someone announces their mortgage and then they can have friends, family and second and third degree friends and families finance your loan.
Let’s say someone buys a $250k house. Each person puts in $100 and then they get a receipt showing they are owed $200 against their 1/2500th share of the mortgage. Repayments are paid the $200 in return in a random time frame of between the first month to the last month 30 years later. Repayment is completely randomized, meaning you could get your money back really soon… Or a really long time from then.
There are a lot of other ways you could build on this idea.
So the idea is its a cross between charity and gambling, who gets paid when is the gambling. It’s a feature.
Also, I don’t think your math is taking into account the $200. You borrow $100 and pay back $200, the interest is baked into the repayment amount. It’s a gamble, the people paid in year 1 get hella interest. The people paid back in year 26 basically break even on inflation and people paid back in year 30 lose money.
But I am fascinated to know what procedural hurdles one would face trying to set something like this up.
Oh I missed the part about $100 buy in. That makes a bit more sense. But where are you getting the cash to pay out the investors? You buy the house and then every 4.4 days you’re on the hook to pay out $200 for 30 years. Where is that cash coming from?