I mentioned it at the bottom. The report doesn't provide numbers. I would assume that they would negotiate a rate that results in marginally higher yield than a

I mentioned it at the bottom. The report doesn't provide numbers. I would assume that they would negotiate a rate that results in marginally higher yield than a bond that would mature over the lifetime of the loan. 30 year bond is ~4.2%. You'd pay $60M in interest on a single loan at 10yrs and $183m if you took out repeated loans at 10yr/20yr/30yr and repaid at 35. I assume that the math works out such that if you had a LOC for 100% of the asset, at the 30 year bond rate, and continually maxed out the LOC, that the interest rate paid would equal the taxation rate. The point is that the worst case scenario is paying equivalent fees without having to trade-off between liquidity and appreciation and the best case scenario is significantly lower fees because you didn't need 100% liquidity.