A Comprehensive Look at Selling Timelines and Annualized Returns
If you’ve been thinking about buying a Digital Assignment Contract (DAC) on Solslot.com, you’ve likely wondered: “How long until I get paid out?” The short answer depends on when (and at what price) the property sells—or if you decide to sell your DAC before the homeowner closes on the property. Below, we break down what to expect from typical real estate timelines, average Days on Market (DOM), and how you can calculate your annualized returns.
1. Understanding the Forward Sale Timeline
Already on the Market—or Listed Soon
Most properties issuing DACs through Solslot are either already listed or will be listed soon. That listing triggers a clock for how quickly the property might go under contract and eventually close. In 2024, many regions are projecting average Days on Market (DOM) of, on average, 69 days, although this varies based on local demand, interest rates, and property condition.
Typical Timeline to Close
Days on Market: 69 days (listing to accepted offer)
Closing Period: 20–45 days (from accepted offer to ownership transfer)
This means that, in a fairly active market, you could see a total time of anywhere from 3 to 5 months for a property to go from listing to closing. However, this is not guaranteed—market conditions can shift, buyers may need financing contingencies, and negotiations can prolong or shorten this window.
What If the Property Doesn’t Sell Quickly?
Every Forward Sale arrangement includes a defined term (often around 8 months). If the property hasn’t sold by then, the homeowner must refinance or otherwise resolve the Forward Sale obligation—ensuring a resolution and payout for DAC holders. While unlikely, an extended timeline could push your investment horizon beyond the “average” market scenario.
2. Selling Your DAC Before the Property Sells
Secondary Market Option One feature that sets Solslot’s DACs apart from traditional real estate is the ability to resell your DACs on our marketplace prior to the property closing. That means if you decide you don’t want to wait until the home sells, you can list your DAC at more or less than you paid, depending on what the market will bear.
Pros: Potential to realize gains early if demand for DACs is high, and original discount was large.
Cons: If market sentiment shifts or buyers are scarce, you may not get your original purchase price—or you might have to wait for a suitable buyer.
3. Calculating Your Annualized Return
Annualized returns help you compare different investments over varying time periods. Here’s a step-by-step guide:
Determine Your Profit Profit = Final Payout – Initial Investment
Convert to a Percentage Absolute Return (%) = (Profit ÷ Initial Investment) × 100
Annualize It Annualized Return (%) = Absolute Return (%) × (12 ÷ Months Held)
Example Calculation
Initial DAC Purchase: $350
Final Payout: $400 (resulting in a $50 profit)
Absolute Return: $50 ÷ $350 = 14.3%
If Sold in 3 Months 14.3% × (12 ÷ 3) = 57.2% annualized
If Sold in 6 Months 14.3% × (12 ÷ 6) = 28.6% annualized
(These figures are illustrative. Actual payouts and timelines can vary.)
4. Key Takeaways
Potentially Short Horizon Many DAC-listed properties are near or already on the market, so you could see a 3–5 month window, based on average 2024 Days on Market and closing data.
Secondary Market Resale If your timeline changes, you’re free to resell your DAC on the marketplace, potentially adjusting your price relative to market sentiment.
Annualized Returns Returns can look especially attractive if the property sells quickly—but it’s still real estate, with all the usual market variables.
Underwriting & Term Limits Sols Lot enforces strict underwriting, capping loan-to-value ratios and providing an 8-month term (or similar) for sale or refinance, which protects DAC holders from endless delays.
In Conclusion The time to receive a payout on your DAC depends primarily on local market conditions and how quickly the property sells (or refinances). However, the secondary market offers flexibility if you need to exit early. By understanding average Days on Market, potential closing timelines, and how to calculate annualized returns, you’ll have a realistic view of when—and how—you might profit from your fractional real estate investment.
If you have any questions about property listings, average DOM in a specific region, or how to list your DAC on the secondary market, feel free to reach out. We’re here to help you navigate this new way of investing in real estate.