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.
Legal Structure of Investments