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D. Expend of guarantee. Let's say Steve wants equity in George's company and receives 20%. Steve loans George your initial funding and an agreement is designed to be that Steve will own this equity for 10 years. Each year, George is advantageous Steve 20% of the gross bottom line. At the end of ten years, if any automobile dealers still owed on the loan, in which doubtful, George will cash equity of 20% and even a balloon payment of anything that remains throughout the loan. All this, of course, end up being agreed upon at the outset, so make sure you define this accurately.

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