Skip to main content
All CollectionsInvestor Questions
What is an Equity Pledge and How is it Used by Constitution to Protect Investors?
What is an Equity Pledge and How is it Used by Constitution to Protect Investors?
C
Written by Constitution Lending
Updated over 3 months ago

An equity pledge is an agreement between a borrower and a lender. In the case of default, the lender can foreclose on the LLC interest that owns the property instead of directly foreclosing on the property thus circumventing the judicial foreclosure process. Typically this means a faster principal payback process for investors.
โ€‹
Learn more about investing with us in real estate notes

Did this answer your question?