The Yields Payment Guide

The yields payment differ for any kind of project: some of them pay on a monthly basis while others pay at the end of the loan, together with the capital repaid.

When do I receive my income from a “Fixed-Interest (Rent)” opportunity?

With this kind of opportunity, yields will be repaid when the project will be completely financed. On the other hand, you start earning income from the first month until the developer repays the loan.
The yields are repaid during the first 10 working days of the subsequent month straight after the project has been financed.

There’s only one exception: when the funding ends after the 20th day of the month, the interests accrued during the period, will be counted additionally to those accrued in the subsequent month and they will be between the 1st and the 10th working day of the subsequent month.

For example, if a project ends on the 20th of January, the first interest’s payment will happen between the 1st and the 10th of March. This payment will include the interests accrued during January and February.

When do I receive my income from a “Development Loan” opportunity?

In these projects, yields are paid on a monthly basis starting from the first day of the month. Therefore, it is credited between the 1st and 10th working day of the month. The first round of yields repaid begins when the funding ends and it closes on the last day of the same month.

There’s only one exception: if the project reaches the funding after the 20th day of the month, the interests cumulated during the period, will be counted adding those cumulated during the following month. They will be credited between the 1st and the 10th working day of the following month.

For example, if a project ends on the 20th of January, the first interest’s payment will take place between the 1st and the 10th of March. This payment will include those interests that have been accrued in January and February.

When do I receive my income from a “Fixed-Interest (Sell)” opportunity?

The Fixed Interest (Sell) opportunities do not generate monthly income: the investor receives only one payment at the end of the project with the corresponding yield and capital.

The rate, as well as the length, are established at the beginning of the project and they do not vary with the sale’s price. Like the other projects, it is possible that the funds paid out to happen before the established time.

When do I receive my income from a “Buy-To-Sell” opportunity?

Moving to the Buy-To-Sell projects, they have interests that depend on the property’s sale. The final yields could be higher or lower than the estimated one. This is because the yields expressed by the average IRR equivalent projects doesn’t guarantee the future yields.

Interests will be distributed as soon as the operation ends and are repaid in one solution only through the capital repaid.

 

Be the first to comment

Leave a Reply

Your email address will not be published.


*