ProCash, an Economic Model for Income Properties
Ownership of Equity Interests
Ownership of the project can be assigned in the simplest way
by assigning decimal values to AVI, AVI, and AVI to
give partnership interests to the developer, the lender, and
the investor respectively. The total of these three decimals
must add to 1.
If there are more than three entities sharing ownership, or
if tax losses or residual values are to be shared in
different proportions, then the input array ENT must be used.
ENT is a matrix with as many rows as there are to be entities
represented. Entities 1 through 5 traditionally have
particular meaning in the use of ProCash©. (1=developer;
2=lender; 3=investor; 4=construction lender; 5=public
sector). (Also see "Participant Roles and Criteria").
|AVI||Developers share of ownership|| 626|| || 4|
|AVI||Investors share of ownership|| 626|| || 4|
|AVI||Lenders share of ownership|| 626|| || 3|
|ENT[;1]||Prtnr Share & Criteria: Dist.of tax deduct's during const|| 626|| || 1|
|ENT[;2]||Prtnr Share & Criteria: Dist.of annual taxable income|| 626|| || 1|
|ENT[;3]||Prtnr Share & Criteria: Dist.of residual values|| 626|| || 1|
|ENT[;7]||Prtnr Share & Criteria: Dist.of surplus cash flow|| 626|| || 1|