Private Equity Deals vs Private Loans
Pros and Cons from your perspective?
Most Popular Reply
A straight-up loan will usually get you the best return on your investment. I say usually, because if you're inexperienced, it's possible that an equity partner could bring their expertise to the deal and earn you more, even after their cut, than you could earn on your own.
Sometimes, if you're cash-strapped, an equity partner can help you save a deal you might otherwise have to pass on by providing down payment or other necessary funds that your lender won't provide. You would be more likely to entice a private lender to provide these funds by offering an equity share. Remember the old adage, "would you rather have 50% of something or 100% of nothing?"!!