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WHAT IS THE VALUE OF THE PROPERTY CASH
BACK CERTIFICATE AFTER 25 YEARS WHEN A DEVELOPER SELLS A HOME
OF $150,000?
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EXAMPLE
CALCULATION FOR THE PROPERTY CASH BACK PROGRAM BASED ON AN
INITIAL MARKETING FEE OF $7,200.00 PAID BY THE DEVELOPER
After
25 years the Property Cash Back Certificate has a
Value of $152,859.90
Our
original investment of $7,200.00 would be worth $152,859.90
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 $150,000 Property
Purchase Price:
| 70% |
Home
Builder |
$107,000.95 |
| 15% |
Equity
Branch Manager |
$
22,928.99 |
| 15% |
Equity
Head Office |
$
22,928.99 |
| 100% |
Property
Cash Back Program - Total Payout |
$152,859.90 |
:
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Input Summary
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|
Years
|
25
|
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Rate of return
|
13.0%
|
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Initial Marketing Fee of Cash Back Program Invested
|
$7,200.00
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|
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Results Summary
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Compounded interest return
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$122,259.90
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Simple interest return
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$23,400.00
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Total invested capital
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$7,200.00
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Value of Property Cash Back Certificate at Maturity
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$152,859.90
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Property Cash Back Certificate Balance by Year
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Year
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After Tax
Net Interest
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Total
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|
0
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$0.00
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$7,200.00
|
|
1
|
$936.00
|
$8,136.00
|
|
2
|
$1,057.68
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$9,193.68
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3
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$1,195.18
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$10,388.86
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4
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$1,350.55
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$11,739.41
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5
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$1,526.12
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$13,265.53
|
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6
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$1,724.52
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$14,990.05
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7
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$1,948.71
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$16,938.76
|
|
8
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$2,202.04
|
$19,140.80
|
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9
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$2,488.30
|
$21,629.10
|
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10
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$2,811.78
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$24,440.89
|
|
11
|
$3,177.32
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$27,618.20
|
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12
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$3,590.37
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$31,208.57
|
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13
|
$4,057.11
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$35,265.68
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14
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$4,584.54
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$39,850.22
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15
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$5,180.53
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$45,030.75
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16
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$5,854.00
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$50,884.74
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17
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$6,615.02
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$57,499.76
|
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18
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$7,474.97
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$64,974.73
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|
19
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$8,446.71
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$73,421.44
|
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20
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$9,544.79
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$82,966.23
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21
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$10,785.61
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$93,751.84
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22
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$12,187.74
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$105,939.58
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23
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$13,772.15
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$119,711.73
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24
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$15,562.52
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$135,274.25
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25
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$17,585.65
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$152,859.90
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Equity Real Estate Investment & Business Trust
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