- Joined
- Sep 24, 2009
- Messages
- 35
I was just reading about how some real estate experts prefer to use debt investors and pay interest rather than doing a traditional 50/50 joint venture deal. I like the sound of that, but I'm confused as to how this would work. To me it seems the mortgage would be 100% financed. 80% from the banks and 20% from the debt investor.
The bank would want a guarantee from the investor and the investor wouldn't want the risk of being on the mortgage and footing the bill.
Can someone please explain to me how this would work?
The bank would want a guarantee from the investor and the investor wouldn't want the risk of being on the mortgage and footing the bill.
Can someone please explain to me how this would work?