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Flashcards in chapter 16 Deck (33)
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31

what is sale leaseback?

arrangement are used to finance large commercial or industrial properties. the land and building usually used by the seller for business purpose at sold to investor. the real estate is then leased by the investor to seller who continues to conduct business on the property as enact. the buyer becomes the landlord (lessor) and the original becomes the tenant (lessee) . the enables a business to free mont tied up in real setae to use as working capital

32

what is buy down?

is way temp lower the initial interest rate on mortgage or deed of trust loan

33

what is home equity loan?

are source of funds using the equity build up a in a home the original mortgage loan remains in place, the home equity loan is junior to the original lien. it is alternative to refinancing and can be used for financial needs