Adam Hooper – Let’s put some dollars that are real that.

Adam Hooper – Let’s put some dollars that are real that.

Adam Fountain – Get ahead.

Adam Hooper – So if you raise a $200 million investment, you've got $200 million of capability, where you’re saying, if you are taking on leverage, in the event that you raise a $200 million investment, you could lever that to $400 million of ability.

Adam Fountain – Right. And where in actuality the issue may appear is, let’s assume you will be making a million buck loan. You’ve raised $500,000 from investors, then you borrowed $500,000 from the bank to create that loan compared to that builder or designer. Now, if that loans goes laterally you have to take that property back, the bank is going to want its money on you, and. And today you've got, if it’s a construction loan, you've got a half completed task, along with to provide $500,000 returning to the financial institution which you borrowed from. To ensure can eat into any kind of equity pillow pretty quickly. While in an investment like ours, we’re lending at a 65% loan to value ratio, and when we just take a house straight straight back, in theory, we’re no greater than 65% of this initial assessment value. Therefore we preserve that equity pillow. We don’t owe anybody such a thing from the loans that people make. If there was clearly a serious proper, in concept, we're able to simply just just take a property back and take a seat on it for many years. That’s the flexibleness I think as this cycle gets longer and longer, people forget what happens when the tide goes out that you get when not having leverage, and. You discover away pretty quickly who may have leverage and whom does not.

Tyler Stewart – and just how, as an investor, evaluating this asset course, just how do they determine that?Read more