If you’re visiting SolsLot.com for the first time, here’s the quick rundown on how our platform works—and why it’s different from other real estate or crypto investment opportunities. We combine forward sale contracts with blockchain technology, giving you a fractional slice of a property’s future sale proceeds.
1. What Exactly You’re Buying
Forward Sale of Equity
In a traditional transaction, you buy a property or invest in a loan. At Sols Lot, you’re purchasing a fraction of the home’s future sale proceeds. It’s neither a loan (no monthly payments) nor shares in an LLC.
Digital Assignment Contract (DAC)
Your DAC is a blockchain-based token on the Chia network. It represents your right to receive a share of the final sale (or refinance) proceeds—valid up to a specific term (e.g., 8 months).
2. How It Differs From a Mortgage or REIT
Not a Loan No interest, no monthly payments. You’re simply investing in a fraction of the eventual Appraised Price.
Property-Backed Security Each DAC interest is secured by a deed of trust. If the homeowner can’t meet their obligation, Sols Lot has enforcement rights, similar to a lienholder.
Shorter Holding Periods, Higher Returns Because these homes are typically on the market already, you might see returns within months, rather than the multi-year cycles common with rentals or REITs.
3. How Returns Are Calculated
Discounted Purchase You buy your share at a discount to the home’s appraised value. That built-in discount is where your profit potential comes from.
Appraisal & Term A licensed third-party provides the home’s valuation. The Forward Sale agreement sets a target timeframe (e.g., 8 months). If the home doesn’t sell by then, the homeowner must sell, refinance, or face legal enforcement.
Annualized Returns If a property sells quickly, the discount-based profit can be significant when converted to an annualized percentage (20–60%, depending on the deal).
4. LTV & Risk Mitigation
80% LTV Standard The mortgage plus all Forward Sale positions can’t exceed 80% of the appraised value. This safeguard makes it less likely the property sells below its obligations.
Re-Appraisal Over Longer Terms If a homeowner's term is longer than a year, a new appraisal will adjust your payout, reflecting the property’s updated market value.
5. Who Benefits & Why
For Investors
Higher-Yield Opportunities Homeowners give a discount for quick cash, creating strong return potential.
Short-Term Exit Many deals close in under a year, ideal if you prefer fast turnover versus rental properties.
Blockchain Benefits DACs live on the Chia network, letting you self-custody your tokens and potentially trade them in the future.
For Homeowners
Immediate Cash No need for a second mortgage or HELOC—convert a fraction of your home’s equity right away.
No Monthly Payments You don’t owe interest or principal each month, freeing up cash flow while waiting for the right buyer.
6. Clear Term Length & Enforcement
Defined Term (e.g., 8 Months) Once the clock runs out, the homeowner must sell, refinance, or face foreclosure proceedings.
Short Timeline, High Upside If a sale closes early, your return is “locked in” sooner, boosting your annualized profit.
7. How to Invest: Step-by-Step
Connect & Select a Property Check each listing’s discount, appraisal, and term details.
Purchase DACs Pay via Stripe (debit card/bank) or crypto (Chia or stablecoins).
Track Ownership Your DAC appears in your Goby wallet (or any Chia-compatible wallet). Monitor updates on our platform.
Property Sells Once sold, your DAC is redeemed for its share of the proceeds— an offer sent straight to your account.
Collect Your Payout Enjoy the one-time gain without the hassles of maintenance or tenant management.
8. Transparency & Documentation
Appraisal Access Every property includes a licensed third-party appraisal and evaluation so you can evaluate pricing.
Contract Docs The Forward Sale agreement and disclaimers are clearly posted so you know exactly what you’re buying.
Term & LTV We display the contract term, mortgage balance, and how much equity is for sale, giving you a quick sense of risk vs. reward.
9. Important Disclaimers
No Guaranteed Return Real estate markets change, so discount-based returns are projections, not certainties.
Appraisal vs. Sale Price If the property sells early, you’re paid based on the current appraisal; if it is longer, we will re-appraise every year for a more accurate valuation.
Regulatory Compliance This is a forward sale of equity, not a traditional security or loan—but you should understand the associated legal framework.
10. At a Glance: Why Sols Lot?
Forward Sale Fraction Buy a share of final sale proceeds—no landlord duties.
Discount & Short Timeline Your profit margin is built-in, and many deals complete in under a year.
Deed of Trust Protection 80% LTV cap and lien rights reduce risk.
Easy Payment Options Debit, bank, or crypto—your choice.
Learn & Connect Soon, watch our tutorial videos or join a community channel to ask questions.
Ready to Dive In? Explore our listings on SolsLot.com. Each property page includes its appraisal, term length, and step-by-step instructions for buying DACs. If you still have questions, check out our FAQ or reach out via our online chat.
Disclaimer: All potential returns are estimates based on current market conditions and appraised values. Real estate is inherently risky, and values can fluctuate. Always do your own research or consult with a financial advisor before investing.