Finance
A West Virginia commercial property investor uses a 'participation mortgage' where the lender receives a portion of the property's income in addition to interest payments. This arrangement is known as:
AA conventional loan with a bonus structure
BAn equity participation or shared appreciation mortgage✓ Correct
CA federally backed commercial loan
DA deed of trust with profit sharing
Explanation
In a participation mortgage (equity participation), the lender receives both interest payments and a share of the property's cash flow and/or appreciation in exchange for providing favorable financing terms. This is common in commercial real estate financing.
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