How to Obtain the Commercial Real Estate Financing You Need

Commercial real estate funding has always been somewhat difficult to secure, unless you had a large project in mind and were an established business entity that banks felt comfortable with. However, anyone that didn’t fall into that convenient category probably could not get the commercial real estate funding needed, which meant that the majority of development projects never got off the ground. Nowadays however, there are a number of options beyond the traditional lending institutions, thanks to the advent of the Internet. Here are some of the additional options available to commercial real estate professionals today.

Seller financing

Sometimes the seller of a property is willing to provide part of the financing for a project, because it can serve to lower their tax liability for that calendar year. This is a very appealing option for real estate pros, because it generally costs less than borrowing from other sources.

Crowdfunding

This commercial real estate funding option is very new and very exciting, because it offers pre-vetted real estate projects to pre-registered investors, who can then indicate their interest in the project online. Such real estate projects can be made available to large numbers of investors in this way, so that funding can be secured in a very quick time frame.

Joint venture partnerships

In this arrangement, a financial partner joins a group of commercial real estate investors and provides financing, for a certain portion of the profits. This can be a very flexible arrangement, with partners providing different kinds of value to the group.

Syndications

As they apply to commercial real estate funding transactions, syndications are groups of investors who fund commercial real estate transactions, in anticipation of a percentage of the profits, or for a pre-specified set amount.

Equity trades

In some cases, the equity from a secondary real estate property can be offered as down payment, or as a portion of funding for a primary commercial real estate transaction.

Commercial real estate financing with Ace4Growth

Getting the right commercial real estate financing can help you make the next important purchase, that will really send your business over the top. Contact us at Allegiant Commercial Experts, so we can help make it a reality for you. Our financial experts are standing by, and ready to lend their talents and knowledge toward your next commercial real estate transaction.

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