Understand the payout for Lotly home owners and investors
This is an illustrative example for a single home in a fund. The Lotly fund consists of multiple homes like this, and you will own shares in multiple homes.
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After 7 years at a X% market appreciation rate, this $800,000 home will be worth $1,200,000.
Homebuyer will have
$100,000
Initial down payment
Initial down payment
This is the pay back of your initial down payment contribution.
$44,995
Piece of appreciation
Your piece of appreciation
You share home appreciation with your investors. For example, if you and your investors each put in 10% downpayment (a total of 20%). Investors will take 32.5% of appreciation (due to 3.25x leverage), and you keep the remaining 67.5%.
$66,000
Equity from mortgage pay down
Equity from mortgage pay down
The amount you borrow with your mortgage is known as the principal. Each month, part of your payment goes toward paying off that principal, or mortgage balance, and part goes toward interest on the loan. As you pay down your mortgage, you build equity in your home, and this equity is yours to keep.
$250
Total
Mortgage
This is calculated with a fixed mortgage rate of 4.5% and an amortization of 25 years. We assume your mortgage rate does not change over time.
$100,000
Investors will have
$200,000
Initial investment
$3,000
Piece of appreciation
Investor portion of appreciation
Investors get 3.25x leverage on their investment. For example, if investors put in 10% downpayment, their share of appreciation is 32.5% (3.25 x 10%).
$252,000
Total
$200,000
Payout over time with 6% yearly market appreciation rate
Year
Home price
Homebuyer payout1
Investor payout2
1
$1,100,000
$100,000
$200,000
3
$1,200,000
$120,000
$200,000
5
$1,300,000
$140,000
$200,000
7
$1,500,000
$160,000
$200,000
10
$1,600,000
$180,000
$200,000
1. Homebuyer payout includes down payment, a share of the home’s appreciation, and principal paid down on the mortgage. 2. Investor payout includes down payment, and a share of the home's appreciation.
Lotly investors helped homebuyer pay a large portion of down payment and now homebuyer is ready to buy them out...
Sell your home
When you're ready to move on or buy a different home, your investors can be paid out using proceeds from the home's sale.
Refinance your home
If you want to continue living in the same home, you may be able to refinance your mortgage to pay off your investors.