How have commercial real estate investments affected the economy? If you are planning on investing in CRE, you should be aware of REIT.
When investing in CRE you will come across the real estate investment trust or REIT. So what do you need to know about this company? How do CRE investments drive the economy?
To learn more, continue reading below. It helps to be aware of the market climate before pushing through any kind of business.
The Status of Commercial Real Estate NYC Market
There are many places like NYC where CRE investments are thriving. The commercial real estate NYC market is part of the many other CRE markets all across the US.
REIT comes into the picture as they are a public company that has its own CRE. It’s easy to buy shares in REIT as an individual investor and gain profit. There is also a lesser risk when buying from REIT.
Compared to other public companies, REITdistributes 90% earnings in taxes to shareholders. According to the national association of realtors 2015 forecast report, REIT is impactful. Around 34% of the equity in the CRE market is under ownership by REIT. This means that REIT has the 2nd biggest source of ownership in the market.
Finding the Best Commercial Real Estate NYC Loans
There are many types of commercial real estate loans that you can choose from.
- Bridge Loans
These are temporary loans with one-year terms or less. These are loans fir for entrepreneurs looking for a long-term financing option.
2.Hard Money Loans
When applying for this loan, you will need a commercial property as collateral. These are also short-term and temporary loans given in situations such as foreclosures.
Lenders are able to share the revenue off of the CRE. This means that revenue from the CRE functions as a monthly mortgage with interest to the lender.
4.Real Estate “purchase” Loans
These loans are like adjustable-rate commercial and fixed-rate mortgages. You need to have good credit scores and significant savings to apply for the loan.
5.Joint Venture Financing
two partners work in this loan together. This loan is good for business partners who aren’t able to get the financing they need on their own.
Can You Get Commercial Real Estate NYC Loans Without Down Payments
There are ways where you can get commercial real estate with no down payments. You have to be aware of what your business is and how to gain profit to afford a down payment.
- Borrow money from others
- Negotiate with the lender
- Ask for seller financing
- Rent a property with an option to buy
- Assuming the existing mortgage
These are only some of the ways you can get the CRE loan you need. Remember that getting into CRE is a commitment. You have to be knowledgeable about the market. Prepare the right funds and now your CRE loans.