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Basics

Conversion to Equity


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:

image.png
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

$
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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