Hello Crowdfunding; Goodbye FHA, Fanny Mae and Home Mortgages.

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No Loan Homes Are The Future, There is no downside
Compared to investing in your home via a conventional loan, you have zero risk and will never loose your deposit, go bankrupt or even pay another real estate commission when you move. Your equity moves with you, it does not stay in your home.

Imagine this financing model:
You wish to live in a $250,000 house. In this financing model, you will pay $1,250 per month plus all other expenses for this home, taxes, maintenance, etc. Same as you would if you had a mortgage.

There is no debt, no mortgage as a crowd of people merged their funds (Crowd funded) to purchase your home. This crowd comprises the CLOUD. Royalty Clouds, Inc. , the CLOUD administrator, holds the ownership in escrow.

So, what is so great about that, paying rent does not help me build a nest egg of equity in my home.

Correct in the typical situation, but here is where it gets interesting. We are going to show you how you can build a nest egg without ownership of the property. No, it is not a land contract either. This is totally new. Keep reading.

CLOUD members agree to buy your home for you to live in. These members purchase 2,500 RRUs (Royalty Revenue Units) at $100 each to fund your home purchase. In return for this purchase, the CLOUD will realize a return of $1,250 each month. This will earn each member a return of ~ 6% per year on their investment.

In todays market a bank would want you to make a downpayment of 10% -  $25,000 or the equivalent cost of 250 RRUs. This $25,000 could be used to purchase 250 RRUs in this CLOUD in lieu of a downpayment.

As a member of this CLOUD your 250 RRUs (of the 2,500 total units necessary to purchase your home) would yield you annual earnings of about $1,500 per year.

If you re-invested that $1,500 every year into a similar CLOUD over 30 years, your $25,000 investment would have grown to $276,756.68.

Additionally, at the end of 30 years, if the home is sold, you and other members of the CLOUD would receive a final royalty payment comprised of the sales price of your home less selling expenses (realtors and administrative fees of approximately 10%). If you pass and your home is then sold, your family will receive that final royalty payment. You never lose the value of the stream of revenues from your RRUs. Even if you were to go bankrupt, your royalty stream would be protected since it can be deemed part of your IRA or 401(k) (see Tax Free Below).

You don't even have to sell your home in 30 years if you don't want to.  Just continue paying the monthly fee.

Need to move? Fine, take your equity with you, lease a new home and keep on going.

The key here is that you are invested into real estate CLOUDS that pay far better than owning a home. You have no downside. Prices of homes can go up or down and you are protected.

Tax FREE
That's right. If you have a Self Directed IRA you can use those funds as your downpayment and then all earnings from your royalties are tax free.
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FAQs
This sounds too good to be true. Is it?
No, it is just math.  The return to CLOUD members is similar to the bank.

How long is the lease?
Each lease is negotiated by the property manager as it renews.

What if I have to move and I need to sell my RRUs to make a downpayment on a new home?
You can sell your RRUs to the new lessor or to other CLOUD members or other Royalty Cloud members. They cannot be sold on any public website or via any public method. They must be sold to a member of Royalty Clouds. (Anyone can join so that is not an issue.)

What if I move but wish to keep my RRUs as an investment?
You can do that, there is no requirement for you to sell your RRUs.

What if the property cannot be leased for the $1,250 per month years down the road?
The property manager is charged with oversight of the property and responsible for keeping the lease at current rates when it comes up for renewal. If the lease amount reduces then all members of the CLOUD will see a reduction in their return.

Who determines when the property should be sold?
The property manager is charged with making that decision when the lease expires. A recommendation will be made to CLOUD members and a majority vote will dictate the approval.

What happens if the government takes it over as part of some emanate domain action?
The property is sold and remaining proceeds are distributed to the CLOUD.

Does a lessor have to be a member of the CLOUD?
No

What happens if Royalty Clouds, Inc. goes under?
Fair question. The title is in escrow with a Title company. Your royalty agreement remains in effect and the property manager would take over as the temporary administrator of your account. Royalty Clouds, Inc. provides audited financials to members for each CLOUD every year. Members can withdrawal earnings whenever they like.

"These numbers are estimates and are for the purpose of example only. Your royalty agreement may be different as purchase prices of properties will vary as well," Barry Rickert, Founder and Creator of Royalty Clouds



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