What is an Investment?

An Investment represents an individual investor's commitment of money to an SPV. When an investor decides to back a deal, they create an investment specifying how much they want to invest and through which investment profile (individual, LLC, trust, etc.).

Key Investment Details

Every investment includes:

• Amount -- the dollar amount the investor has committed (minimum set by the SPV, default $500)
• Person -- the investor who is making the commitment
• SPV -- the Special Purpose Vehicle the money goes into
• Investment Profile -- the legal entity or individual identity the investor is investing through (Individual, LLC, Trust, etc.)
• Bank Account -- the funding source for the investment (ACH bank account, wire, or external)
• Payment Type -- how the investor is paying (ACH bank pull or wire transfer)
• Status -- where the investment is in its lifecycle (see Investment Lifecycle)

How Investments Relate to Other Entities

• An investor (Person) can have many investments across different deals
• Each investment belongs to one SPV and, through the SPV, to one deal
• Each investment is made through one investment profile (the legal entity)
• Each investment has one bank account as its funding source
• An investment can have multiple payment orders (initial payment, supplemental payments for increases, correction payments, refunds)
• An investment may be assigned to a funding close for batch settlement

What Admins Should Know

• Investments track commitments, not money -- the investment record tracks what the investor promised to pay. The actual money movement is tracked through Payment Orders.
• Multiple payment orders per investment -- an investment can have several payment orders (e.g. the initial payment plus a supplemental payment if the investor increases their commitment).
• Fee schedule attached -- each investment has a fee schedule that determines the platform fee, carry, and management fee. See Investment Fees.
• Investment amount is in whole dollars -- no cents. The minimum is typically $500 but can be configured per SPV.

In This Section

• Investment Lifecycle -- the stages an investment goes through
• Investment Fees -- how fees are calculated
• Adjusting Investments -- handling short payments, overpayments, and corrections
• Investment Increases -- when an investor wants to invest more
• Cancelling & Refunding -- unwinding an investment