Posted by Karl Grube on May 11, 1999 at 20:52:27:
Lets say you want to buy a duplex but you are a little short of cash. You recruit a private investor who arranges the mortgage money. For his services he takes a 15% equity in the duplex. YOU own 85% and he owns 15%. YOU were so motivated to do the deal that you gave up 15% of the property. Variations of this “shared equity” scenario are endless … you might call it a percentage partnership!