Commercial real estate options are changing. There are more now than there ever have been before. Which one to choose can be an overwhelming decision to make, but the following comparison and tips may help.
Crowdfunding for commercial real estate is on the rise. The use of crowdfunding for all sorts of things has been growing in recent years. Depending on the size of the crowd of funders, each person could only have to put in a few hundred dollars, or even just a $10 or $20 to get things going. Of course each person in the crowd has less stake in whatever is being funded than if there were only one or two investors that put up thousands of dollars. Crowdfunding is trendy, but it is not the main way to secure commercial real estate financing.
Traditional Funding/ Financing
Of course the investor angle is just that. You find a few investors, or just one that can do it all, and they foot the bill for you to get started. Sometimes the traditional financing approach works better, and sometimes it takes a combination of the two.
Commercial real estate loan rates will play a major role in what you choose. For example, if loan rates are high, then you will want a bigger investment or to look at crowdfunding in an effort to reduce or eliminate the amount of the loan you would have to get. However, if rates are low, you may do better borrowing as much as you can to get a faster start.
If you need funding for a commercial real estate venture, Biz2Credit can help. Its network of over 1,300 lenders can provide just the right one to get you started. Visit Biz2Credit today for more information.