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As you know, real estate crowd funding platforms are taking off at the moment. Platforms connect investors to real estate assets. I am having an issue with understanding how exactly borrower payment dependent notes work. I simply want more details about the SPVs involved. Is the underlying loan simply a loan and not a debt security? Does the platform directly lend the money or do they do it through a different SPV? And then the platform creates a different SPV to which it issues these borrower payment dependent notes? Would the investors then be buying a pro rata share of the SPV? Thank you so much.

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