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Tutorial of Math
Equity Sharing Percentage
Investors are entitled to a portion of the eventual gross sale price of the property. While this portion , the initial equity sharing percentage is simply the investment amount divided by the initial appraised value.
Adjust the sliders below to try it out.
Input:
Investment Amount:
$
000000
50000Initial Appraised Home Value:
$
0000000
500000Output:
Equity Sharing Percentage:
= /
50000
500000
=%
10
Input:
Property sells for:
$
0000000
600000Output:
Investor proceeds at time of sale:
= % x $
10
600000
= $
60000
More info about Equity Sharing
Equity Sharing Percentage
Equity sharing is one of the two main features of home investments through Vessel. When we refer to “buying" or "sharing" equity of a property, what we really mean is buying contractual rights to a percentage of the eventual gross sale price of the property. The initial Equity Sharing Percentage is determined as such:
For example, a $100k investment into a property appraised at $400k would produce an initial Equity Sharing Percentage of 25%.
Proceeds from Sale
To calculate the amount the investors are owed at the time of sale (or buyout), multiply the equity sharing percentage and the gross sale price of the property. Closing costs are paid in full by the property owner.
Notes:
legal structure
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