🌊Profit Waterfall

1️⃣ After selling a property, the senior lender is paid back first - borrowing costs are factored into the profit calculations.

This leaves a surplus of around 35%/40% of the selling price.

2️⃣ Modus Members hold a "priority position," ensuring that they receive payment immediately after the senior lender. Your investment plus expected return is secured 2-3x by the surplus remaining.

As a result, the selling price would need to be 15-25% lower than the calculations made by the Modus property team and third-party quantity surveyors engaged by the senior lender for you to not receive your anticipated return.

3️⃣ As the developer gets paid at the end of the waterfall, this creates incentives to maximise project success, as they get what is left over.

4️⃣ Modus then takes a fee for the listing and uses these revenues for operations, development and token burns.

Last updated