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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
      • icon picker
        Legal Structure of Investments
      • 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

Legal Structure of Investments

Investments into a property are pooled through property-specific investment vehicles (Delaware Statutory Trusts) which contracts with the property owner per the terms above and secures the investment with a trust deed. The contract itself is an option contract (as opposed to a loan or an actual equity purchase), whereby if the property owner fails to abide by the terms or provide liquidity to investors within the term length, the investment vehicle has the right (the “option”) to buy and sell the property to provide liquidity for investors. Vessel’s subsidiary, Vessel Management, LLC serves as the Trustee and Trust Manager of the trust, and in general makes decisions and acts on behalf of the trust, but is not itself an owner of the trust.
Note that Vessel is a marketplace, not an investor. We take a neutral, managerial role over the course of the investments.

 
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