A Service for the High Mobile

Hopefully, we now have a basic understanding of what traditional real estate investing and real estate ownership looks like from a financial perspective. Now we want to explain how we go from the traditional real estate ownership model, to a co-ownership model like the one Tadaima offers, and the impact that such a change has.

We'll show this by going over two major transformations we make from traditional real estate to co-owned real estate, and how such transformations reduce costs while making things as fair as possible if not, more fair. From there, we'll look at how these transformations impact the function and financial performance of the same investment pillars we used before, and their performance over time. And finally from such, be able to see numerically how the changes implemented ACTUALLY bring the 5 Year Rule down to 1.

This is an exciting section for us, one to bear the proof of how we function as a service to enable home ownership for the highly mobile. Let's Dive in.

This is a great base from which now we'll make some transformations. These transformations serve the purpose of showing just how we go from the traditional home ownership model, to a co-ownership model with a company like Tadaima. The two major transformations that do all the work are:

• Single Ownership -> Co-ownership Framework

• Real-time Transactions -> Intertemporal Transactions

These two transformations are what make Tadaima Co-ownership able to bring the 5 Year Rule down to 1, but at the same time 10x the complexity of what we as Tadaima have to do. These transformations serve the puprose of removing costs while making things as fair as possible between individuals. In the coming sections, we'll go over just exactly how these two transforms do just that in a little more detail.

With our transformations applied, we're then going to repeat the following analysis process we did with a traditional real estate ownership situation by looking at how these new transfomrations changes things functionally for each of our investment pillars, and how when modeling they perform over time.

Single Ownership forces the concept of transacting on real estate to have Counterparty Risk, making things more costly. With a co-ownership framework we can extend on top of the current existing single ownership model, and just append individuals as owners to the home

We do this to bring home ownership to the highly mobile. But as we saw in the previous sections, there's huge costs that come with trying to own a home and obligations that come with that to make it worthwhile in the long run. In the content to come we'll go over 1) How Sequential Co-ownership rearranges the pieces to be more cost effective, and 2) model that financially over time to see how it performs.

Could I still type if I was walking? I think so? It's kinda a fun thought, but something I think I could get use to pretty quickly

We need to address these somehow. We have two ways we can do this 1) We can delay costs, and 2) we can distribute costs, and we 3) detail costs.

Delay Costs

remember how in the previous section we didn't consider down payment as one of the costs? That's because we assume in a loss-less transaction you should get that value back. Since each subsequent co-owner is benefiting from the initial co-owner paying all the costs to acquire the home (loan origination, appraisal, inspection, etc), we need to equalize for that.

The Final Product

Cutting Exit Costs

In exiting a real estate investment, the major cost in the US is paying for the services of real estate agents. In our previous section we estimated the costs of real estate agent services to be roughly $30,000 to $36,000. Simply saying "oh we just won't use real estate agents," and thinking that'll do the trick is over simplifying things.