Funding & Investors
Funding & Investors have been an integral part of the property financing process for decades. The Lending Institutions and other financial institutions invest in Commercial Real Estate for a variety of reasons including appreciation, rental value, or to generate income. As a result Commercial Real Estate investors must seek funding from private individuals, banks, and other lending institutions. Individuals seeking funding seek a range of options for securing the money needed to purchase Commercial Real Estate properties. Depending on the investor, the source of funding may be a family member, friend, real estate agent, investor or a group of private investors.
Private funding sources for Commercial Property include: Individuals looking for venture capital to expand their Commercial Property business. Entrepreneurs looking for ways to generate capital to support start-up or expansions of their Commercial Property business are typically successful in securing private funding from a number of different sources including friends and family, private investors, or various business groups. Public investors such as city, county and state agencies that acquire and manage property for tax purposes are another source of funding for Commercial Real Estate investors seeking funding.
Private funding can be obtained from a variety of sources including friends and family, banks, and real estate companies. Private investors seek funding to assist in the purchase of Commercial Real Estate properties which is commonly used as an investment. Real estate investors typically do not purchase all of the property they own; they usually fund a portion of the total cost of the property. This portion of the purchase price is called a down payment. As a result, the investor has no debt to service and no equity when purchasing a property.
Private investors seek funding from a variety of sources. Private investors can obtain funding from a bank including a mortgage lender. Most banks will work with an accredited investor that has been approved for a home loan. Private investors also can obtain funding from a non-traditional financial institute, such as the Small Business Association, which works with businesses looking to obtain funding.
Private funding for Commercial Real Estate investments includes a variety of sources. Investors can obtain money from a friend or family member who has money. Another common source of private funding for a Commercial Real Estate investment is from banks that have approved home loans. A third common funding source for investors is non-traditional financial institutes such as the SBA. The Small Business Association is a great place for investors to obtain funding for purchasing Commercial Real Estate property.
It should be noted that investors seek funding for Commercial Real Estate investments in all market conditions. Investors expect a down turn in housing prices at some point during the current down cycle. In this down market investors should prepare for an investment phase that will last for at least a year. It is important to note that investors do not necessarily require long term financing for Commercial Real Estate investments.