Tommy Dobczyk lends $1 million to a custom home builder at 12% interest. Investors get 8%, the platform keeps 4%, and the builder pays a 2% origination fee. The deal is structured as an equity syndication with a waterfall or GP/LP model.
Chapters
We set up an interest-only payment with a, say, a home builder. We're doing this right now with a custom home builder. They're taking a million-dollar loan with us. We're providing them that million-dollar loan at 12%, but we're paying our investors a guaranteed contractual 8%, right? And we're holding that 4% as that processing fee. Now the builder also paid us 2% on the loan as part of the closing costs. So we took a 2% origination fee. So that way our investors didn't take that hit. We had it come from the actual builder. So an equity syndication, it's set up in a way where we can do like a waterfall or instead of the— it'd be more like a GP/LP situation where we GP with the builder.