Global Definitions Database

Access, learn and discover all terms related to the non-listed real estate sector.

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Participating mortgage

an investment secured by a lien on real estate that generally consists of three parts: (1) "based interest" payments at contractually stated fixed or floating rates; (2) "contingent interest" payment where the lender is paid a percentage of property net operating income or cash flow after debt service and (3) "additional contingent interest" which is in the form of lender participation in the appreciation in value of the underlying property.

Source: NCREIF PREA | Date: 29 April 2020 | ID: D0257 | Version: 2