Have You Ever Heard of "Over-Funding" a Deal?

[Nina Grayson]

I attended an REI event recently and I heard of "over-funding" a deal. It was not explained to me how this is done, and I would think it's a bit risky. Have you ever heard of this term? Have you ever "over-funded" a deal? My first thought is that this has to do with lending on 70% of ARV. If so, the deal has to be so obviously good and calculated immaculately, that there is little margin for variation. Let me know in your comments below.

Nina