By Patrick Schwartz

Equity-based funding has provided both individual entrepreneurs and entrepreneurial consortiums with the added capital needed to invest in those lucrative commercial property opportunities.

The substantial growth in the property market has opened up so many investment opportunities for South Africans.

The big problem though, is lack of sufficient un- geared capital! There are few options out there for property investors who are new to the market. Or even for investors who do not wish to tie up all their cash into a single investment, as they would like cash ready for future opportunities.

A group of 17 entrepreneurs found a small residential shopping centre for sale in Mowbray. This group of previously disadvantaged individuals had about 33% of the investment capital needed. They approached Business Partners for the balance needed to purchase this sought after property. What does Business Partners offer such investors?

“We will add to the client’s own investment capital in order to secure term funding. Our shareholding will be based on the pro-rata contribution between Business Partners Ltd and the client,” says Business Partners’ Patrick Schwartz.

“After meeting the equity requirements Business Partners can also offer the term loan.

“The equity portion and interest rates are determined based on the viability of the commercial property and the cash flow position of the business.

“The terms of repayment of the loan portion is normally 10 years.

“Business Partners Ltd also provides Property Management Services for entrepreneurs.

“The equity based funding option is one of the better ways to empower entrepreneurs to own a business or property.

“The entrepreneurs then are able to acquire a property worth far more than their initial investment and are given a real opportunity to grow their wealth status.

“An investment well worth investigating!” concludes Schwartz.

Source: Daily Dispatch