Your a smart kid with a blind spot.
Free loan was mentioned over & over even when I outlined what the exchange actually is which is obvious to anyone with both eyes open.
But suddenly that wasn't a loan but paying rent in advance, oh but no it's not.
It's simply put not a loan, unless you want to break the transaction into bits.
A loan of cash for the loan of a villa.
The interest of the loan is nullified by the rent on the villa. I.e the cost of the loan is the rent that could have been earned on the villa.
Obviously the kicker is the 70% buyback & resale, after refurb costs. But this is the only kicker & that should grow over time which is a good deal for OCA.
How's this for a scenario?
The real estate market deteriorates further?
Not only new sales, but resales become a problem, but in the mean time OCA have to pay out the 70% whilst only sitting on a little bit of cash on the balance sheet. They are very reliant on there being a buyer for the resales.
Now I don't necessarily hold that view, but it's not out of the realms of possibility.