Richard Green is a professor in the Sol Price School of Public Policy and the Marshall School of Business at the University of Southern California. This blog will feature commentary on the current state of housing, commercial real estate, mortgage finance, and urban development around the world. It may also at times have ruminations about graduate business education.
Monday, June 04, 2007
One reason to become a parent
I took my daughter Hannah to hear the Philadelphia Orchestra at the Kennedy Center yesterday. We agreed the playing was awesome. But while I found Eschenbach's Brahms 1st fussy, she really liked it a lot, and argued it was consistent with the romantic tradition. I disagree, but it was fun to have the conversation.
Equity Share Investor means you will share what equity is created in the property with an investor who will give you the money for a down payment. For example, If David lindahl scam is an investor gives you 20% of the purchase price to put down on a property. In return for this down payment, the investor will get 20% of the monthly cash flow, and 20% of the profits upon the sale of the property.
ReplyDeleteAdditionally, the 20% that is put down will be treated like private money. Private money is a second mortgage on the property. Depending on the interest rate environment, the rate for the private money is 3–4% higher than banks are getting for primary financing.