DEBT OR EQUITY DEAL

Hello everyone! This is Juan Carlos Gastelum. I am a real estate investor in Texas.  Today I’d like to respond to some of our accredited investors who have asked about our deals posted in our Ace Capital Fund platform.  Basically, the common question is how to distinguish between a debt deal and an equity deal?  Well, the key difference is very simple: when you invest in an equity deal, you’re basically taking the risk of the asset, meaning that, you’re buying into the asset itself maybe as a limited partner, maybe within the general partner category, but in any event, you’re still taking the risk of the deal. However, if you’re investing in a debt deal, you’re basically becoming a lender to the investor in the asset. That means that you are taking interest and payments no matter what and based on or backed up by the note that you’re given by the fund manager.  So, that’s the subtle nuance between those two types of investments. If you have any questions, go ahead and send me an email at jcgastelum@acecapitalfund.com and be sure to subscribe to our YouTube channel OneWayTexas. That’s it for now, take care, best wishes on your real estate journey, and God bless!

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