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Updated 6 months ago on . Most recent reply

Tim Johnson's profile image
Tim Johnson's profile image
Tim Johnson
  • Investor
  • from Houston, TX
  • Member since Dec 8, 2015
Connect

User Stats

109
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40
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Tim Johnson's profile image
Tim Johnson's profile image
Tim Johnson
  • Investor
  • from Houston, TX
  • Member since Dec 8, 2015
Connect
Tim Johnson
  • Investor
  • Houston, TX
40
Votes |
109
Posts
Private Lending & Conventional Mortgage Advice

Lending for equity / convertible notes

Tim Johnson
  • Investor
  • Houston, TX
Posted

Has anyone seen an example of a lender combining debt with equity on a real estate deal? e.g. is it possible for someone to lend $100k on a deal in exchange for, say 6% interest rate plus 10% share of profits?

Related: Is it possible to do a convertible note when lending on a deal? i.e. Lend $100k on a deal for typical terms, but with the option to convert your loan into an equity stake in the future?

Would some kind of deal like this ever make sense to you? Under what circumstances?

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