Traditional debt can limit operator flexibility. Equity Participation Loans offer an alternative: capital without monthly payments—replaced by a profit split upon exit.
Best for:
• Large fix & flip projects
• Ground-up construction
• Repositioning or entitlement plays
Structure:
• No monthly interest — frees up operating cash flow
• Profit-sharing at exit (negotiated percentage based on projected return)
• Draw-based funding, released upon milestones
• Can be layered with senior debt or structured as a joint venture
These loans align lender and borrower incentives and work especially well in high-margin or phased development projects where cash flow is limited during construction.
