|
The Loan That Invests in You.
Another product offered exclusively through the Equity Companies to address the special need of supplementary capital is the ShareholderLoan™. This product utilizes the equity the sponsor has in other projects or holdings to borrow the capital needed to purchase the subject property, in conjunction with primary debt.
The name of the product is derived from the most common method of investing the loan proceeds in the property – ownership of shares. Most investment properties are owned by privately held corporations because this form of ownership is mandated by the primary lender and affords a corporate shield from liability for the shareholders.
|