Do investors make money on property appreciation?

Yes. In common equity projects, private investors make a profit if the project sells for more than it was worth when you invested in it. The net proceeds would then be distributed accordingly to each equity investor based on when and how much they invested. On debt projects, however, investors receive a monthly interest payment and a balloon principal payment at the end of the term. There is no property appreciation for debt projects and investors do not own the underlying property.

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