Home/The Deal/Following the Money
1,061 words · ~5 minShareable

Following the Money

Here's the part that has to be crystal clear: how a deal actually cashflows — where every dollar comes from, who it passes through, and what's left for the people who own a share (and for us).

It happens in two motions. Money goes in once, when the property is bought. Then money comes out every month, when the rent lands.

Money in — once

Many people each put in a small amount. We pool it into one entity that buys the property outright (or covers the down payment if there's a mortgage). Each person owns a fractional share of that entity — and therefore a slice of everything it earns.

Many
Small investors, pooled into one property
1
Entity owns the deed; shares represent it
Once
We earn a finder's fee for sourcing + assembling it

We take a finder's fee at this step for doing the hard part — sourcing the deal and bringing the capital together. Then the monthly machine starts.

Money out — every month

The rent comes in, the costs of running the property come out (and every one of those costs is paid to a partner, not to us), and whatever's left is net cashflow — split between the share owners and our small platform fee.

Follow one month's rent, dollar by dollar
$100 GROSS RENT –25 MGMT & UPKEEP → manager –15 TAXES & INS. → the state –20 DEBT (if any) → lender $40 NET CASHFLOW THE SPLIT owners DISTRIBUTED our fee → $6 owners → $34
Fig. 1 — Illustrative only. Every deduction goes to a partner; only the small top slice of net is ours.

The shape is what matters, not the exact figures (those vary deal to deal — see Deal Economics for real modeling):

Where our money comes from

Two clean, recurring places — and neither requires us to operate anything:

Finder's fee — once, at acquisitionPlatform fee — a slice of monthly cashflowZero operating margin to chase

That's the entire economics of being the connector. The deep version — fee structures, returns, the full model — lives in how-we-earn and Deal Economics.

The point: we get paid at the two ends — finding it and paying it out — while every cost in the middle flows to someone else. → the-connector