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WHAT IS THE VALUE OF THE PROPERTY CASH
BACK CERTIFICATE AFTER 25 YEARS WHEN A DEVELOPER SELLS A HOME
OF $300,000?
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EXAMPLE
CALCULATION FOR THE PROPERTY CASH BACK PROGRAM BASED ON AN
INITIAL MARKETING FEE OF $14,400.00 PAID BY THE DEVELOPER
After
25 years the Property Cash Back Certificate has a
Value of $305,719.81
Our
original investment of $14,400.00 would be worth $305,719.81
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 $300,000 Property
Purchase Price:
| 70% |
Home
Builder |
$214,003.86 |
| 15% |
Equity
Branch Manager |
$
45,857.97 |
| 15% |
Equity
Head Office |
$
45,857.97 |
| 100% |
Property
Cash Back Program - Total Payout |
$305,719.81 |
:
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Input Summary
|
|
Years
|
25
|
|
Rate of return
|
13.0%
|
|
Initial Marketing Fee of Cash Back Program Invested
|
$14,400.00
|
|
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Results Summary
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|
Compounded interest return
|
$244,519.81
|
|
Simple interest return
|
$46,800.00
|
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Total invested capital
|
$14,400.00
|
|
Value of Property Cash Back Certificate at Maturity
|
$305,719.81
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Property Cash Back Certificate Balance by Year
|
Year
|
After
Tax
Net Interest
|
Total
|
|
0
|
$0.00
|
$14,400.00
|
|
1
|
$1,872.00
|
$16,272.00
|
|
2
|
$2,115.36
|
$18,387.36
|
|
3
|
$2,390.36
|
$20,777.72
|
|
4
|
$2,701.10
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$23,478.82
|
|
5
|
$3,052.25
|
$26,531.07
|
|
6
|
$3,449.04
|
$29,980.11
|
|
7
|
$3,897.41
|
$33,877.52
|
|
8
|
$4,404.08
|
$38,281.60
|
|
9
|
$4,976.61
|
$43,258.20
|
|
10
|
$5,623.57
|
$48,881.77
|
|
11
|
$6,354.63
|
$55,236.40
|
|
12
|
$7,180.73
|
$62,417.13
|
|
13
|
$8,114.23
|
$70,531.36
|
|
14
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$9,169.08
|
$79,700.44
|
|
15
|
$10,361.06
|
$90,061.49
|
|
16
|
$11,707.99
|
$101,769.49
|
|
17
|
$13,230.03
|
$114,999.52
|
|
18
|
$14,949.94
|
$129,949.46
|
|
19
|
$16,893.43
|
$146,842.89
|
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20
|
$19,089.58
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$165,932.46
|
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21
|
$21,571.22
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$187,503.68
|
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22
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$24,375.48
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$211,879.16
|
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23
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$27,544.29
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$239,423.45
|
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24
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$31,125.05
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$270,548.50
|
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25
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$35,171.31
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$305,719.81
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Equity Real Estate Investment & Business Trust
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