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Equity Exchange Program

# Conversion to Equity

> Basics >
At the property owner’s discretion, a portion of the annual income may be paid with additional equity sharing percentages. The underpaid amount (amount owed - amount paid) is divided by the to produce the increase the equity sharing percentage for that year:
In other words, any amount the property owner opts not to pay of the annual payment they owe in a given year is automatically reinvested into the property, increasing investors' equity sharing percentage.
Try it out:
Income Payment Owed
$00000 23000 Income Payment Made 00000 6000 at Year End$
0000000
560000
Underpaid Amount
$17000 Equity Sharing Percentage Increase =$
17000
/ \$
560000
=
3.04
%
So, if at the beginning of one period, the were 10%, the equity sharing percentage would be
13.04
% at the beginning of the next period.

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