Each share represents $1 of investment.

Let’s say the house is worth $200,000 and the owner wants $40,000 for 20%. A special purpose vehicle (SPV) is created that owns the contract with the right to 20% of the future value of the property. Each share in the SPV is worth $1 so 40,000 shares at $1 each are issued. If a single investor invests $10,000 they are buying 10,000 shares and have the right to 25% of the proceeds upon a financing event. Therefore:

  1. The type of security offered are equities in an SPV
  2. The value of each share is $1