What are the two sources of capital for real estate investments?
Equity, debt
Entrepreneurial effort, equity
Mortgages, second mortgages
Debt, hard costs
Answer-
Equity, debt;
Equity financing is the way toward raising capital through the offer of offers. Organizations fund-raise since they may have a momentary need to cover tabs or they may have a drawn out objective and expect assets to put resources into their development.
Debt Financing implies when a firm fund-raises for working capital or capital consumptions by selling securities, bills, or notes to individual or potentially institutional speculators. As an end-result of loaning the cash, the people or organizations become banks and get a guarantee to reimburse head and interest on the debt.
Get Answers For Free
Most questions answered within 1 hours.