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What is 100% financing, how can it be used to fund your next project hotel project, and how can a joint venture or equity partner be kept out of the equation to ensure maximum profits while borrowing at the absolute lowest cost of funds? In the world of project financing no matter whether the project is a hotel or resort development project, a bio-diesel or ethanol project, a uranium reclamation facility, or just about any type of project for that matter, 100% project financing typically comes at a cost, and usually significant cost. Typical 100% project funding structures are made up of roughly 60-75% traditional debt financing with the remaining capital coming from owner equity, a gap equity provider, or a joint venture partner that is interested in the industry or specific project type i.e.: hotel, casino, resort, marina, energy, etc.). Although a combination of traditional debt financing and outside equity sources can provide significant leverage and 100% financing (by definition), virtually every possible source of financing involving some sort of debt or equity (or a combination of both) requires the project owners and developers to share the profits of the venture with outside investors or equity partners of some ...
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