If the home price goes up by 20% ($1.0M to $1.2M), the homeowner will be entitled to 51% of the $200k upside, and investors will have 49%.
What if the home loses value?
If the home loses value over time, investors will share in the downside. This means investors could lose a part of their initial contribution, up to the whole amount if home values fall drastically.
With Lotly, homeowners and investors win together, and lose together.