It is important to understand that you are purchasing securities backed by real estate that are issued by property owners. This, on the one hand, gives you the ability to gain exposure to residential real estate value but it also means that these securities are not easily tradeable. It also means that, by law, you need to hold the securities for a minimum of 12 months from when they are issued. After the 12 month waiting period is over you can sell these securities to others, privately.Â
With every issuance, the property owner commits to a term’s length. At the end of the term, they commit to returning money to investors based on the value of the property at the time, as assessed by a third-party appraisal.
Owners can also prepay the investment at any time after the one-year mandatory holding period is over. So it is likely that you will get your money back before the term ends.