Hi szfinx.
Thanks for the questions. Yes, all money raised is invested. Let me explain how the calculation works:
The investment is based on an aggressive gearing model.
What is the essence of gearing? Using the bank's money (or financing) to increase the size of an investment in order to increase the returns on your investment outlay.
Basic example
You invest 5,1 Ether (X)
We borrow 45,88 Ether (Y)
Total property Investment = 50,98 Ether (Z)
Over time the value of the property increases to 104,38 Ether (T) and the Bank loan is reduced to 10,62 Ether (P) (Due to rental payments)
Over Time expenses = 8,86 Ether (K)
Refer to page 24: SCENARIO 2 90% GEARING
Value of coin= [(T)-(P)-(X)-(K)]
Original coin Value appreciation forecast = [(T-P)-K-X]/X *100%= 1566%
[(104,38-10,62)-8,86-5,1]/5,1 *100%= 1566%
Its on page 31 of the white paper and the graph explains it well.
So token value is based on future value of the company.
I hope that helps explain it but I am happy to answer any questions.
So basically investment buys a downpayment on a property and title would be assigned to a lending bank? How you will get a loan from bank - you would need to guarantee payments based on company income or cash in the bank to cover that mortgage?