This graph depicts your cumulative projected payout over ten years. The IRRs that are shown are an average annual number based on cumulative payout.
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.
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.
Real estate returns are maximized over a long period of time. Short-term real estate investing is not recommended as it can result in high-transaction costs and may not yield any return depending on the market cycle.
Timing of each sale depends on the homeowner. We expect 50% of the homes in our fund to exit around the 6-7 year mark, and the rest should exit by the 10-12 year mark. Homeowners benefit from appreciation alongside investors, so they will be motivated to sell when prices are high.
If there are still homes in our fund after the 10 year mark, Lotly will do everything commercially possible to provide liquidity to our investors. We may do things such as facilitating a sale of your position to another investor (via our exempt market dealer).
Disclaimer: This is a highly illiquid asset. It’s possible that you will not be able to exit your position.
Real estate returns are maximized over a long period of time. Short-term real estate investing is not recommended as it can result in high transaction costs and may not yield any return depending on the market cycle.
Timing of each sale depends on the homeowner. We expect 50% of the homes in our fund to exit around the 6-7 year mark, and the rest should exit by the 10-12 year mark. Homeowners benefit from appreciation alongside investors, so they will be motivated to sell when prices are high.
If there are still homes in our fund after the 10 year mark, Lotly will do everything commercially possible to provide liquidity to our investors. We may do things such as facilitating a sale of your position to another investor (via our exempt market dealer).
Disclaimer: This is a highly illiquid asset. It’s possible that you will not be able to exit your position.
If you would like to purchase more units, please contact team@lotly.com, and we will be happy to help you.
You can invest in this fund once your investor profile is set up. Lotly investor profile is legally required to verify your identity.
Lotly Offering Memorandum includes proprietary information for the business. You can download the OM once you sign up and authenticate to securely sign in.
Lotly homes are financed using a mortgage. Investors contribute to the down payment, and in exchange, homeowners take on and pay the mortgage. For every $1.0 that investors put toward the down payment, they get $3.25 in asset value exposure.
Got itLotly GTA fund houses both resale homes and brand new buildings. We use data to select properties with the best relative value and growth prospects.
*Holding details can change anytime before the fund closes in Dec 2023.
Invest with as little as $1000. Get the returns of real estate without the huge upfront costs.
Your investment goes to the down payment. The homeowner pays the mortgage, expenses, and upkeep.
We use data science to pick properties with the best appreciation potential.
You can sign up and purchase fund online in less than 5 minutes. View your holdings by logging into your dashboard right here on our website.
You can sign up and purchase fund online in less than 5 minutes. View your holdings by logging into your dashboard right here on our website.
Your payout will be deposited to your bank account at the time of each sale. We expect most homes to be sold within 7 years based on historical data.
In the future we intend to offer other liquidity options. Read more
Your payout will be deposited to your bank account at the time of each sale. We expect most homes to be sold within 7 years based on historical data.
In the future we intend to offer other liquidity options. Read more
Our fees cover:
Facilitation of each home purchase
Management and compliance of the Lotly fund
Maintaining assets in pristine condition
Our fees cover:
Facilitation of each home purchase
Management and compliance of the fund
Maintaining assets in pristine condition