Adam Hooper – Let’s put some genuine bucks on that.
Adam Fountain – Get ahead.
Adam Hooper – when you raise a $200 million fund, you have 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 in which the nagging problem may appear is, let’s assume you will be making a million buck loan. You’ve raised $500,000 from investors, after which you borrowed $500,000 from the bank to create that loan compared to that developer or builder. Now, if that loans goes laterally for you, along with to just take that home straight back, the lender will probably desire its cash. And today you have got, that you borrowed from if it’s a construction loan, you have a half finished project, and you have to give $500,000 back to the bank. To ensure that can eat into any type of equity pillow pretty quickly. While in a investment like ours, we’re financing at a 65% loan to value ratio, and when we just just just take a house right right back, the theory is that, we’re no greater than 65% regarding the initial assessment value. Therefore we preserve that equity pillow. Read more →