Term Definitions for Add Configuration #

In this section, we will list the definitions of all the settings available in the Syndicator Calculator.

Name #

The Name of your Configuration. This is only used for display and it is not visible to the Investor.

You can use this field to keep track of different configurations for different deals or timeframes.

Deployment Domain #

The Domain name where you plan to deploy this configuration.

This setting is used to verify the domain you will be deploying the Syndicator Calculator to and impact your subscription plan.

Maximum Display Width #

The desired maximum width of your page. This enables you to align your look to the rest of your website.

If your website is not always rendered as a full width, you can specify the maximum width you would like the Syndicator Calculator to render to. This allows you to better manage the design of your pages. In most cases, the calculator will already span 100% on a mobile device, so this setting primarily affects Desktop displays.

Initial Investment #

The minimum amount you allow your investors to invest.

This is the starting investment amount. It can either be set as the minimum investment amount on your deal or an amount you would like to encourage your investors to commit to. The Calculator assumes this amount is invested on day 1 of the first quarter, and all calculations are based on this amount.

Additional Yearly Contributions #

Additional contributions the Investor can make each year. We recommend you set this value to either the same amount as the minimum investment or at least 25,000. This amount will also dictate how soon an investor can reinvest their distributions.

If your investor is in the wealth-building stage, they are likely to continue their investment journey with more than the Initial Investment. To account for that, the Syndicator Calculator allows for configuring an additional amount that is invested each year. The amount is not automatically invested on day 1, as most syndications require a minimum commitment for an investment. The Calculator will calculate the appropriate investment date based on the built-up distributions, Additional Yearly Contributions, and the Reinvestment Threshold.

Reinvestment Threshold #

This is the minimum amount an investor will need to accumulate before they can invest in a subsequent deal. We recommend you set this amount to your minimum amount you would accept as an investment.

In order to illustrate more realistically what investing in syndications, in the long run, can accomplish, we allow you to specify the reinvestment threshold. While we recommend you set it to the minimum investment amount, you can configure it to any amount you would like. Keep in mind that the higher you set this amount, the slower the returns will be in the calculation.

Reinvest Distributions #

Reinvest Distributions assumes any distributions are reinvested into a new deal once the total of Distributions plus Additional Yearly Contributions reach the Reinvestment Threshold.

This setting allows you to showcase the compounding effect of distributions. We recommend keeping this setting on but allowing your investor to change it. This can help them play with the scenario where they do not re-invest the distributions but actually live off of them.

Yearly Distributions #

This is the percentage of returns you are planning to distribute on a yearly basis. We know that you might not have same distributions throughout your investment, so we recommend that you put a disclosure on the page.

This is the projected distribution you are planning to do for the project’s lifetime on a yearly basis. You will likely not start distributions immediately, so we recommend that you disclose to your investors that this is for illustration purposes.

Hold Period (Years) #

The expected hold period in years for your deal.

This is the number of years you are projecting your project to last. This is also the period used to calculate all future investments.

Equity Multiple #

The Equity Multiple for your deal.

This is where you would configure the expected multiple for your deal. This multiple is used for all future deals for the calculations.

Simulate Years #

The number of years you want the calculator to display. We recommend that you put this as a number not exactly divisible by the Hold Period, to better illustrate returns for your investors.

We recommend that this number not be exactly divisible by the Hold Period so that your illustration looks a bit more aligned with the real numbers. If you set the Hold Period as a factor of Simulate Years, the graph will not render the last transaction, which in most cases will be substantial. This is because the Cumulative Invested Amount is updated in the next quarter after the completion of an investment. Go ahead and try it for yourself!

Allow change of Invested Amount #

This will enable or disable the ability of your Investor to change the Initial Investment. We recommend that you leave this setting on.

Leaving this setting on will allow your investors to play with the calculation and do more “What if?” scenarios. Maybe your minimum investment is $50,000, but what if they invest $100,000? Once the investors take a look at the initial projections, they might be more likely to play around.

Allow change of Additional Yearly Contributions #

This will enable or disable the ability of your Investor to change the Additional Yearly Contributions. We recommend that you leave this setting on.

Leaving this setting on will allow your investors to play with the calculation and do more “What if?” scenarios. Maybe looking at the potential future returns inspires them to contribute more yearly. Maybe they are past their wealth-building stage, and now they are focusing on cash flow? With this setting on you allow them the freedom to play.

Allow change of Simulated Years #

This will enable or disable the ability of your Investor to change the number of years the simulation is ran for. We recommend that you leave this setting on.

Leaving this setting on will allow your investors to play with the calculation and do more “What if?” scenarios. Maybe they want to simulate only 10 years of return or go all the way up to 30.

Other Help Articles to review #

We recommend you also review the terms and definitions for the Portfolio Performance