|
| Funds Raised |
|
$ 3,960,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Project Revenue |
|
|
|
|
$ 25,252,831 |
|
|
|
|
|
|
| Land |
|
|
$ 4,099,080 |
|
|
| Direct Servicing |
|
|
$ 8,848,103 |
|
|
| Design & Engineering |
|
|
$ 302,000 |
|
|
| Municipal Fees and Charges |
|
|
$ 269,208 |
|
|
| Legal & Administration |
|
|
$ 711,033 |
|
|
| Sales & Marketing |
|
|
$ 1,685,825 |
|
|
| Finance Costs & Interest |
|
|
$ 1,379,533 |
|
|
| Development Soft Cost Contingency |
|
|
$ 503,947 |
|
|
| Development Management Fee |
|
|
$ 888,247 |
|
|
|
|
|
|
|
|
| TOTAL COSTS |
|
|
|
|
$ 18,686,976 |
|
|
|
|
|
|
| Expected Profit - Gross |
|
|
|
|
$ 6,565,855 |
|
|
|
|
|
|
| Developer Participation |
|
|
|
|
$ 4,550,473 |
|
|
|
|
|
|
| LP Participation [Expected Profit] |
|
|
|
|
$ 2,015,383 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Return per Unit Projection |
|
|
|
|
|
|
|
|
|
|
|
| Expected Profit - Investment |
|
$ 2,015,383 |
|
|
|
|
|
|
|
|
|
400 Units |
|
Return per $ 9,900 |
|
|
Simple
Annualized ROI* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ 5,038 |
|
|
35.6% |
|
|
|
|
|
|
| * In order to calculate a true annualized return on investment, we use the date at which we have repaid all of the investor’s capital (estimated to be month 16 of the project) and do a Net Present Value (NPV) calculation on all of the money received by the investor after that point in order to reflect the time value of the investor’s money. For the NPV calculation we have used a very conservative 10% discount rate (more than double the T-bill rate) and then used the NPV dollar amount to calculate the annualized return on investment for the investor. We also use the same methodology to figure out exactly when the investor has reached the 21%/yr and 28%/yr return thresholds which trigger the changes in the profit splits between the investors and the developer. |
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|
