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Wow - borrowing from Peter to pay Paul. I'm curious if you or anyone else knows who underwrote such a loan? I'm guessing it wasn't a commercial bank? Where do
by bogomipz 7y ago
Wow - borrowing from Peter to pay Paul. I'm curious if you or anyone else knows who underwrote such a loan? I'm guessing it wasn't a commercial bank? Where does the money come from to do the debt servicing on those loans?
- vkou 7y agoThe debt servicing comes from the rental income. You submit to the lender a business plan of how you are going to use the borrower money, how your shares act as collateral, and how you will use the cash flow of the rental income to make interest payments. It's no different then any other corporate loan.