The simplest way to minimize financial risk is to use all equity. All equity simply means that 100 percent of the money comes with one simple promise — “If you give me money, I will give you all the profits associated with that money.” If there are profits, the investors get their share, but if there are no profits, the investors are not owed anything. Learn more in this short video.

Presented by Bisnow with Professor Peter Linneman from the Wharton School of the University of Pennsylvania. This clip is from the Bisnow series called “Everything you Always Wanted to Know About Real Estate, But Were Afraid to Ask.

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