What monthly interest payments look like — and what happens on payoff

You place capital, and every month interest lands in your bank account. Here's exactly how that flow works and what happens when a loan pays off.

Monthly interest

Interest accrues daily on your outstanding balance and is deposited to your designated account on the first of each month via ACH (wire for larger accounts). Your monthly statement shows the accrual, the days in the month, and the total deposited.

When a loan pays off

When a borrower repays a loan — typically at sale, refi, or 1031 exchange — the principal is returned to AVCG. That principal is then either deployed into a new loan (keeping your placement active) or returned to your account, depending on your standing instructions.

Reinvestment vs. distribution

Most investors choose reinvestment — principal rolls into the next available loan so your capital stays deployed and earning. You can change this at any time.

Year-end reporting

For personal accounts, we issue a 1099-INT at year end for all interest paid. For IRA-held placements, your custodian handles reporting per the rules of your retirement vehicle.