Projected Profit & Loss
Timeshare Sales & Operations
This P&L is based upon the Buyers
outsourcing the Marketing & Sales of
the Timeshares and paying the commissions & Expenses as estimated
herein. The Buyers may choose to perform
the Marketing & Sales themselves.
|
SALES
OF TIMESHARE WEEKS |
Expense |
Income |
Net |
|
|
(Weeks available after
initial purchase) |
714 weeks x 10,000 ea. |
|
7,140,000.00 |
|
|
Purchase Price of SSL Shares |
1,950,000.00 |
|
|
|
Construction of 6 units |
300,000.00 |
|
|
|
Sales Cost (20%
commission) |
1,428,000.00 |
|
|
|
Advertising - 2 Years
|
500,000.00 |
|
|
|
TOTALS - (Includes
purchase price of resort, expenses to
complete 6 units, sales costs &
advertising) |
4,178,000.00 |
7,140,000.00 |
|
|
NET SALES INCOME - (Sale of 714 weeks) |
|
|
$
2,962,000.00 |
|
|
|||
|
SALES
OF 5 ADDITIONAL CONDOMINIUMS |
Expense |
Income |
Net |
|
|
(Will be purchased from owners who are motivated sellers) |
255 weeks
x 10,000 ea. |
|
2,550,000.00 |
|
|
Re-purchase
price of 5 condominiums @ average price of 100,000.00 each |
500,000.00 |
|
|
|
|
Sales Cost (20%
commission) |
|
510,000.00 |
|
|
|
TOTAL EXP. & INCOME - (Includes
re-purchase price of 5 units & sales costs) |
1,010,000.00 |
2,550,000.00 |
|
|
|
NET SALES INCOME - (Sales of 255 weeks) |
|
|
$
1,540,000.00 |
|
|
|
||||
|
TIMESHARE
ANNUAL MAINTENANCE FEES |
Expense |
Income |
Net |
|
|
Annual Maintenance
Fees - 1st Yr |
484 weeks x $550.00 |
|
266,200.00 |
|
|
Annual Maintenance
Fees - 2nd Yr |
969 weeks x $550.00 |
|
532,950.00 |
|
|
MAINTENANCE FEE INCOME - First 2 years |
|
|
799,150.00 |
|
|
Less, maintenance, finance costs, etc. - 2 yrs |
|
152,000.00 |
|
|
|
Less one time Fee to RCI for each week sold -2 yrs |
|
124,032.00 |
|
|
|
Total Expenses - (Includes
Maintenance, finance costs & one time RCI initiation fees) |
276,032.00 |
|
|
|
|
NET
MAINTENANCE FEE INCOME -
First 2 years |
|
|
$
523,118.00 |
|
|
TOTAL NET TIMESHARE SALES & MAINTENANCE
FEES (Achievable in 2 to 3 years) $ 5,025,118.00 |
|
|
|
Timeshare Operations Annual Maintenance Fees Income (On-going each year after sellout of timeshare weeks) |
|
TIMESHARE
ANNUAL MAINTENANCE FEE NET* (*Maintenance
fees must be increased from present
level) |
969 weeks x $550.00 Less Projected
Expenses |
$
381,000.00 |
|
|
||
We believe this projected income from
the sale of time shares to be conservative and with consistent and systematic
marketing these cash inflows targeted are achievable. At this conservative cash
inflow level we believe that the cash flows are adequate to finance the
acquisition of the Resort and result in a significant return on investment for
the Buyer as shown.