The Estimated Disposition Amount field indicates the value of the property's at sale net of all costs.
This value will be displayed to investors and investors can expect to earn a pro rate share of the disposition amount.Entering a value: You can enter a value that is a loss (negative number) or a gain (positive number). E.g -250,000 as loss OR 250,000 as a gain. The Disposition Amount does not include any interim cash flows received from operations, it is strictly the sale price of the property net of all costs. Final year interim cash flows should be entered in your final year (exit date year)
For example, a 5 year project with $10,000 interim cashflows and exit value of $1,000,000 net of all costs would be displayed as:
Estimated Disposition Amount: $1,000,000
Year 1: $10,000
Year 2: $10,000
Year 3: $10,000
Year 4: $10,000
Year 5: $10,000
Year 5 would not be $1,010,000.
What date will the amount show: The disposition amount date is calculated from the Launch Date plus the Estimated Term. For example, if your Launch Date is November 1, 2021 and your Estimated Term is 36 months then your disposition value will appear on the Income Ladder on November 1, 2024.