What Is A Sinking Funds Factor?

[Gobears81]

Ok. So in this example, if I would like my equity contribution to earn 18% over 10 years I would need to contribute 4.25% each year...

So in the CRE context, does this mean that in order for the equity that I put up in this transaction to make 18%, I would need to contribute 4.25% back into the property for things like capex, maintenance, repairs, etc. in order to keep the property in shape? Or am I completely missing the boat here?

Here's a good discussion down your alley:

http://appraisersforum.com/forums/threads/ellwood-technique.184180/