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When A Down Payment Is Not An Option
Lenders look for something called “skin-in-the-game” when making loans on houses, businesses, developments, or even auto loans. This term refers to the borrower’s equity contributed towards a project and tells the lender that the individual has something to lose if the project fails.
When a borrower does not have the necessary liquidity that traditional sources require all may not be lost. At Remington we deal with capital sources that can finance up to 100% for qualifying deals.
In exchange for the increased risk the take on the front end, they typically require a share in the profits on the back end of the deal, typically between 15-50% ownership can be exchanged for the down-payment or skin-in-the-game.
Taking on a partner is not always the most attractive offer, but it can be crucial in getting deals done when the borrower does not have enough money to make it work on his own.