How can the relatively high interest rate of a project be explained?

How can the relatively high interest rate of a project be explained?

The investments mediated via iFunded are called subordinated loans. Unlike bank loans these loans are are not secured by a first rank mortgage. The investment risk is therefore higher. The mediated funds are qualified as equity on the balance sheet and give the property developer the opportunity to thus borrow additional money from the bank. The real estate developers thus have to provide lower collateral to iFunded investors, but have to pay higher interest
rates to investors in return.

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