Adam Fountain вЂ“ Get ahead.
Adam Hooper вЂ“ when you raise a $200 million investment, you have got $200 million of capability, where youвЂ™re saying, if you are taking on leverage, in the event that you raise a $200 million investment, you could lever that to $400 million of capability.
Adam Fountain вЂ“ Right. And in which the nagging issue can happen is, letвЂ™s assume you will be making a million buck loan. YouвЂ™ve raised $500,000 from investors, and after that you borrowed $500,000 from the bank to create that loan compared to that builder or designer. Now, if that loans goes laterally you have to take that property back, the bank is going to want its money on you, and. And from now on you’ve got, that you borrowed from if itвЂ™s a construction loan, you have a half finished project, and you have to give $500,000 back to the bank. To ensure can eat into any type of equity pillow pretty quickly. Whereas in an investment like ours, weвЂ™re financing at a 65% loan to value ratio, and when we just just take home right straight back, the theory is that, weвЂ™re no greater than 65% regarding the appraisal value that is original. Continue reading “Adam Hooper вЂ“ LetвЂ™s put some real bucks on that.”