Earning with PYs
Income Generation Explained
- Net Rental Income as Basis:
The gifts associated with PYs are derived from the net rental income of properties managed by Propvance. This means all operational expenses, such as property maintenance, taxes, and management fees, are deducted before calculating discretionary gifts.
- Calculation Methodology:
Gifts are calculated based on the performance of the property portfolio. For example:
- Total rental income is aggregated for the portfolio.
- Operational costs, including maintenance and taxes, are deducted to determine net income.
- Discretionary gifts are distributed proportionally among PY holders.
No Guaranteed Returns
- Participants must understand that gifts are voluntary and dependent on the financial performance of properties.
- There is no guarantee of fixed income, and the amounts may vary or even cease entirely in cases of poor property performance or unexpected expenses.
Transparency and Reporting
Access to Performance Data
- Regular Updates:
Participants receive quarterly updates detailing the performance of properties, including rental income, occupancy rates, and major expenses.
- Online Dashboard:
A secure dashboard provides real-time access to performance metrics, offering transparency and fostering trust.
Cost Breakdown and Gift Reports
- Detailed Overviews:
Reports include a breakdown of operational costs such as taxes, insurance, property management fees, and maintenance expenses.
- Gift Calculation Transparency:
Each participant can view how their gifts were calculated, ensuring clarity and accountability.
Financial Summaries
- At the end of each fiscal year, Propvance provides a comprehensive financial summary of the property portfolio, including key metrics such as:
- Total rental income.
- Operational costs and net profits.
- Distribution of discretionary gifts.
Withdrawal and Reinvestment Policies
Gift Withdrawal Process
- Simple Process:
Participants can request withdrawals of their accumulated gifts via the Propvance platform.
- Processing Timeline:
Withdrawals are processed within 15 business days of submission.
- Associated Fees:
A nominal processing fee may apply to cover administrative costs. This fee will be disclosed in advance during the withdrawal request.
Reinvestment Options
- How It Works:
Participants can opt to reinvest their discretionary gifts into additional PYs, subject to availability and terms.
- Benefits of Reinvestment:
Reinvestment allows participants to maintain or increase their symbolic contribution to the Propvance ecosystem, potentially enhancing their participation in future gift distributions.
- Associated Costs:
Any fees or conditions related to reinvestment will be transparently communicated.
Refunds for PY Donations
- Eligibility for Refunds:
Participants may request a refund of their initial donation after holding PYs for at least 5 years.
- Processing Details:
Refunds are subject to:
- Financial and operational health of Propvance.
- A processing period of up to 90 days to ensure compliance with internal policies and liquidity considerations.
Important Notes and Disclaimers
- Symbolic Nature of PYs:
PYs do not represent ownership of real estate or any underlying assets. They symbolize participation in a broader real estate income-sharing initiative.
- Legal and Regulatory Compliance:
Propvance operates as a crowdfunding platform and is not regulated as a financial institution. Gifts are discretionary and not classified as financial returns.
- Tax Implications:
Participants are solely responsible for understanding and managing any tax obligations arising from their participation in PYs.
- No Control Over Operations:
PY holders have no influence over property management decisions, tenant selection, or operational strategies.
Building Trust and Transparency
Propvance is committed to creating a transparent, fair, and user-friendly experience for all participants. Our policies prioritize clear communication, responsible management, and ongoing transparency to ensure a strong foundation of trust.
For additional information or questions, please contact our customer support team or refer to the detailed FAQ section available on the platform.