In a typical Yorkville investment, Angelo would make a loan to a smallish company in return for a note that carried a fixedinterestrate that could also be converted into discounted stock.
One drawback of a fixed-rate reverse mortgage is that you have to draw down the entire loan amount up front and pay interest on the entire amount across the life of the loan.
Currently, a parent can sell shares of the family-owned business to the child for a fixed long term interestrate as low as 2.52%, and not incur a gift tax because of the loanrate.