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Is Cambridge Capital a lender?
What’s the general loan term?
The security used for loan
What are the different type of finance Cambridge Capital offers?
Equity Finance: Either through a lender or investor funds are provided to a property developer to assist with project cost. This type of finance carries higher level of risk as the return on equity solely relies on the capability of the property developer and current market sentiment. An agreement between the parties in the form of a shareholders agreement or Joint Venture agreement with specifying the returns paid to the lender or investor.
Preferred Equity Finance: Is subordinate to all debt, but superior to all common equity. It’s also considered to hold roughly the third position in a commercial real estate capital stack.
Usually in the form of a written agreement that outlines the terms of the investment and return from 20% -30% as a general rule depending on the risk profile of borrower and development. All returns are paid out at end of project.