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Education, Misc

May 11, 2018

Equity Participation


Word of the day

Equity Participation

The arrangement between a potential buyer and an investor in which the investor shares an equity interest in a real property purchase in exchange for assisting with the financing of the acquisition. The investor may provide all or part of the down payment, closing costs, or monthly payment. Investors may be private parties, corporations, mortgage lenders, or even the seller. It is most important to obtain competent tax advice on the proper allocation of tax deductions such as mortgage interest, depreciation, and property tax.

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