Investors now have the ability to fund a Universal Lending DAO.
This Lending DAO will be used to fund expenses for properties on the marketplace without sufficient funds in their Operating Reserves.
These expenses may include repairs, insurance payments, property tax payments, DAO LLC renewal fees, and more.
The Lending DAO structure will be similar to Lending DAO’s for individual properties launched in the past.
The initial $5,950 funded to the Lending DAO will be used to pay for insurance payments for 36 properties that do not have funds to make the payments. You can view the list of properties with outstanding balances here. This insurance must be paid for in order to prevent cancellation of the insurance policy. Owners of these properties are able to vote to sell the properties, instead of paying back the loans.
The initial cap for the Lending DAO is $100,000.
More information on the Lending DAO structure is below:
- 2,000 Capital Call tokens are initially available at $50 each
- The interest rate paid to owners contributing funds to the capital call will be 13.5% per annum, compounded monthly.
- The offer is open-ended with no closing date
- 4-year debt repayment period
- The Lending DAO will only have the ability to liquidate properties on an individual-property basis. For example if the Lending DAO provides loans for 20 properties, and only 2 properties do not pay back the debt within the 4-year repayment period, the Lending DAO will only be able to force a liquidation on those 2 properties, not all 20.
