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Vessel Tutorial
  • Pages
    • Introduction to Vessel
    • Tutorial of Math
      • Equity Sharing Percentage
      • Interim Home Value
      • Annual Income & Yield
      • Conversion to Equity
      • Owner-Caused Value Changes
      • Financial Model
      • Yield Percentage
    • Other Aspects
      • Legal Structure of Investments
      • icon picker
        Contract Length
      • Method of Securing Investment
      • What if Vessel fails?
      • Reselling Investments
      • Vessel's Fees
      • Benefits
      • Investor requirements
    • Comparison to Alternatives
      • For Homeowners
        • Second Mortgages
        • Selling Property
        • Point, Unison, Noah, etc.
        • Reverse Mortgages
      • For Investors
        • REITs
        • Real Estate Crowfunding
        • Buying Investment Property
Vessel Tutorial
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Contract Length
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Contract Length

Each investment contract has a contract length, usually 5 or 10 years. This is the maximum duration the property owner has to provide liquidity to investors through either a market sale of the property or through a buy-out of investors through an appraisal price.
Note that if the property owner opts to buy out investors (as opposed to selling the property in a market sale) within the first five years, the value of the property is determined as the greater of the appraised value and the original appraised value. This prevents property owners from taking advantage of a short-term housing market dip to buy out investors at a loss.

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