Real Estate Funding: Opportunities Available to You

Post by 
Birgo

Other than actually identifying a property, the most important thing to consider is money. Some properties can be purchased and sold for millions of dollars, amounts which not all people have access to at any given moment. There is a multitude of ways which a person can find the proper funding for his or her property. In real estate funding, much of will depend on personal credibility and the type of investment property.

Banks and Loan Financing

One of the most common ways to find real estate funding is through a bank. However, a bank has a limit to how many loans it will give out, and greatly depends on the individual loan. In the event one obtains a loan from a bank, they are still largely on their own. A bank works to protect itself, making the investor personally cover many of the additional costs associated with the property. Also, deals are sometimes structured so the investor is largely invested with many of their personal assets with large down payments.

Real Estate Funding through Hard Money Lending

Another frequently used method is hard money lending, which generally funds a large portion of the deal in return for high-interest rates. This is an option for an investor whose credibility might be in question with a bank or private lender. Where hard money lenders make up for their more accepting ways is their additional rates, which all but guarantee that they will be making their money back regardless of how the investment property pans out.

Private Lenders and Real Estate Funding

A much more attractive option for real estate funding would be a private lender, where there is more negotiation room. A private lender is more often than not seeking a high return on the investment. While a real estate investor will likely need to talk to a large number of big money private lenders for a real estate transaction, the hardest part will be convincing the private lender that you personally are a good investment for them. However, it can be a wonderful option for if the lenders and developers involved are able to come to a consensus. All parties involved are looking for a return on the investment and will do what it takes to achieve that goal.

Keep Up With Birgo

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
THere's More

Posts You Might Also Like

Birgo Realty

Can't Miss Events in Buffalo This Summer

Looking for things to do in Buffalo this summer? Birgo Realty has you covered. From games, bar crawls, festivals, to everything in between, Buffalo has it all! Check out this list of upcoming events and start to plan your amazing Buffalo summer!
Birgo Realty

Can't Miss Events in Cincinnati This Summer

Looking for things to do in Cincinnati this summer? We’ve got you covered. From games to bar crawls to festivals, and everything in between - Cincinnati has it all. Check out this list of upcoming events and start to plan your amazing Cincinnati summer!
Birgo Realty

The 9 Best Amazon Finds for Your Apartment

Amazon has become a go-to for everything you might need in an apartment, but the amount of items it has can be overwhelming. So we’ve compiled a list of the best things to buy on Amazon to create your dream apartment!
Birgo Realty

Pittsburgh Apartments with Air Conditioning

Summer weather is quickly approaching the Steel City, and that can only mean one thing: humidity. While the warmer temperature is a beautiful change from the rain and snow, it can bring about some major issues for those who don’t have air conditioning. At Birgo, we’re here to keep you cool so continue reading for a list of our air conditioned apartments in Pittsburgh.
Birgo Realty

Secure Places to Live for Empty Nesters

Starting your life as an empty nester and contemplating downsizing? Birgo can help!