No 100% payout on the property?

Well, his, that is, TE's house bank also seems to operate like that, but with poor conditions. One does not have to see a problem in that either: it does not matter whether the money is used first or later. Equity capital even has the advantage that the loan does not have to be drawn down until later. Everything has its pros and cons.

Of course, everything is possible, and there are certainly exceptions. However, if a contrary contract has been concluded, one must hope for goodwill. If you plan to contribute a lot of your own work, you should rather keep equity.

And a worse condition with a high loan amount can also hurt after a few years.