Principal and Interest

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January 1, 1 2 min read Definitions

Creating Wealth Dynamically: Understanding Participating Mortgages

Principal and Interest Income Stream Gross Rental Income Financial Instrument Mortgage Wealth

What is a Participating Mortgage?

A participating mortgage is a unique type of loan that allows lenders not only to receive fixed payments of principal and interest but also a portion of the income or resale proceeds generated by the property. This approach provides the lender with an incentive to invest in profitable ventures as they can share in the success.