Real estate financing is as much an art as it is a science, and it’s critical you choose the right financial vehicle to earn a promising return on your investment. Here, the real estate gurus at The Tocco Group discuss some of the most popular ways to secure capital for investment property in New York, NY.
3 Kinds of Real Estate Financing
1. Joint Venture Loans
If you are entering into an investment with multiple parties who will all share equally in the property’s profits and losses, you may consider a joint venture loan. If neither you nor your partners can secure the financing alone, you might be able to take out a joint venture loan together from an investment firm or a private lender.
2. Hard Money Loans
Hard money loans are ideal for individuals who flip homes, because although they tend to be pricey, they are easy to secure in a short amount of time. Private lenders issue hard money loans, which means debtors don’t have to meet the eligibility requirements set forth by mainstream financial institutions to qualify. Lenders typically use the post-repair value of the property in question to determine eligibility, not the borrower’s creditworthiness.
3. Blanket Loans
Blanket loans are intended to fund the purchase of multiple properties or lots. Developers often use blanket loans to buy large tracts of land, which they then divide into multiple lots to sell individually. These loans are designed so the borrower will not have to retire them despite selling off portions of the property.
If you want to learn more about real estate financing for commercial properties, turn to The Tocco Group in New York, NY. To explore all of the services they offer, including real estate marketing and design contracting, visit their website. You can also call (212) 544-2995 to talk to a real estate consultant today.