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Project Financing Deals
By Stocks N Savings  •  January 16, 2015
My wife is an ultra conservative investor.  She has more faith in fixed deposits than in stocks.  "Prove to me that you are successful," she challenged. "And I will invest with you."
So far she isn't convinced to dive into equities with me.  Sometimes, things take an opposite turn.  Her risk appetite burgeons.  She becomes a "why-hop-when-you-can-bungee jump" sort of investor.  The trigger?  When we have a new opportunity to venture into an alternative investment called project financing.What is project financing? Project financing involves providing capital to real estate developers to refurbish existing buildings or construct new ones.  The capital is repaid with interest using the proceeds earned through the sale of the new or refurbished units.
(Image credit: nothing to hide)
Investor equity is definitely not the cheapest cost of capital for the developer.  A bank loan would have been cheaper.  But there are reasons ......
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By Stocks N Savings
SS is a wage slave in his early forties. He works in the information technology industry. (Technically, his employer has been operating a cloud-based Software as a Service (SaaS) platform long before the world has heard about the Internet.)
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