About this graph
This graph depicts your cumulative projected payout over ten years. The IRRs that are shown are an average annual number based on cumulative payout.
Why does the graph start slowing down around year 7?
Historical data shows that most homeowners sell their first home within 7 years of purchase. When a home in the fund is sold or refinanced, your return is deposited back into your bank account. There is no compound interest since money is returned to you, rather than being invested back in to the fund.
After 7 years, homeowners will also have accumulated enough equity from market appreciation and mortgage paydown to buy Lotly out. It is in their best interest to get Lotly out of their appreciation potential. This is an ideal win-win as homeowners get full ownership and investors get liquidity.
Payouts start to slow down after year 7 as there are fewer houses remaining in the fund.
What can affect your outcome
Actual returns may differ and this graph is for visualization purposes only. Market performance and actual time of home sale can affect your outcomes. Take a moment to learn about each of these factors.
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