The consortium is the ideal mix between savings and investment: monthly installments are low and can be recovered as soon as you are covered. By the time the expected letter of credit is released, however, you may be wondering: what now will I do with my investment?
Next, we’ll show you how the letter of credit can be used to make your dreams come true. Check-out!
1. Buy a property
The letter of credit in the real estate consortium is the first key of your new home or apartment. With it, you can choose a property that matches the value of the investment, be it new, used or a land, and enter your new home in a few days.
But it is also worth using the property to earn an income from the rent, either from a commercial or residential unit.
2. Choose a car
If your dream is a car, consortium is also a good alternative. The letter of credit allows you to enter the authorized dealership and choose the model that meets your demands.
And remember: If the vehicle you choose differs from the letter of credit, you can either add up or use the left over to pay for expenses such as IPVA, insurance or plaque.
3. Settle Debts
While consortia often have a very specific purpose – real estate or cars, in particular – it can also be used to raise funds. That is, you can redeem the letter of credit and thus use the money to pay off debts that are hurting your budget.
Get rid of the weights that keep you from saving and investing again as quickly as possible.
4. Pay financing
The contemplated letter of credit may also be used to settle outstanding bank loans. Resolving this type of debt as quickly as possible is important because, unlike the consortium, financing has interest rates that negatively impact the value of the investment.
This type of process, however, must be authorized by the consortium administrator. In general, the amount to be paid must be lower than the letter of credit.
5. Redeem the money
When contemplated in the consortium, the quotaholder does not receive the good directly or the money invested, but the letter of credit. It turns out that it is possible to redeem the cash value, but some rules must be followed. The first is to wait 180 days after the contemplation and, upon receiving the amount, pay the installments that the shareholder still had outstanding.
The redemption can also be made at the end of the consortium. In this case, the wait time is 60 days.
6. Sell Your Covered Letter of Credit
There is also the possibility of selling the letter of credit to third parties, however, this process must be authorized since the signing of the contract with the administrator.
It is also important to be aware that you will still need to continue to pay your monthly consortium quota and the calculation of the sale value should therefore take this factor into account.
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