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WHAT IS THE VALUE OF THE PROPERTY CASH BACK CERTIFICATE AFTER 25 YEARS WHEN A DEVELOPER SELLS A HOME OF $400,000?

 

 

 

EXAMPLE CALCULATION FOR THE PROPERTY CASH BACK PROGRAM BASED ON AN INITIAL MARKETING FEE OF $19,200.00 PAID BY THE DEVELOPER

After 25 years the Property Cash Back Certificate has a Value of $407,626.41.

Our original investment of $19,200.00 would be worth $407,626.41 after 25 years. This assumes an annual rate of return of 13% based on investing into high yield Government Bonds.

Cash Back Distribution to Partners on a $400,000 Property Selling Price:

70% Home Builder $285,338.49
15% Equity Branch Manager $61,143.96
15% Equity Head Office $61,143.96
100% Property Cash Back Program - Total Payout $407,626.41
:

Input Summary

Years

25

Rate of return

13.0%

Initial Marketing Fee of Cash Back Program Invested

$19,200.00

 

Results Summary

Compounded interest return

$326,026.41

Simple interest return

$62,400.00

Total invested capital

$19,200.00

Value of Property Cash Back Certificate at Maturity

$407,626.41

 

Property Cash Back Certificate Balance by Year


Year

After Tax
Net Interest


Total

0

$0.00

$19,200.00

1

$2,496.00

$21,696.00

2

$2,820.48

$24,516.48

3

$3,187.14

$27,703.62

4

$3,601.47

$31,305.09

5

$4,069.66

$35,374.76

6

$4,598.72

$39,973.47

7

$5,196.55

$45,170.03

8

$5,872.10

$51,042.13

9

$6,635.48

$57,677.61

10

$7,498.09

$65,175.69

11

$8,472.84

$73,648.53

12

$9,574.31

$83,222.84

13

$10,818.97

$94,041.81

14

$12,225.44

$106,267.25

15

$13,814.74

$120,081.99

16

$15,610.66

$135,692.65

17

$17,640.04

$153,332.69

18

$19,933.25

$173,265.94

19

$22,524.57

$195,790.52

20

$25,452.77

$221,243.29

21

$28,761.63

$250,004.91

22

$32,500.64

$282,505.55

23

$36,725.72

$319,231.27

24

$41,500.07

$360,731.34

25

$46,895.07

$407,626.41

 

 

 

 

Equity Real Estate Investment & Business Trust
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