Initial Investment $100,000
Preferred Return Rate 8%
Total Annual Preferred Return $8,000

Depreciation Explaination

Lost Value from Building Depreciation $500,000
Depreciation Awarded to Investor $100,000

Investor Personal Tax Statement

 
Income $400,000
Depreciation -$100,000
Taxable Income $300,000
Money Saved $37,000

Investor Equity Payout

Asset Sale Price $3,000,000
Minus Purchase Price -$1,000,000
Profit $2,000,000
10% of Profit Paid to Investor $200,000
Return of Capital $100,000
Total Investor Payout $300,000

Property Profit and Loss Statement

Annual Cashflow $200,000
Expenses -$100,000
Net Operating Income $100,000
10% Paid to the Investor $10,000