Banks have strict internal rules and regulations that may prevent you from getting approved for a large loan. Your bank, however, is not the only avenue available to finance your commercial real estate venture. In addition to traditional bank financing is the emerging crowdfunding market. Crowdfunding offers a non-traditional source of financing to people who are looking to create a business or buy a piece of property.
Here are several of the most popular crowdfunding internet sites that you can use to build capital to finance your commercial real estate purchase:
-- Patch of Land: This company focuses on high-quality investors. It mainly sources funds from institutional investors and accredited investors who want to invest in high yield, short term investments. The company backs everything with personal guarantees, and it underwrites and services all of its loans.
-- Acquire Real Estate: This is a platform that focuses on commercial real estate financing by finding good investment opportunities. Acquire vets all of its properties carefully before putting them out for investment. Its investors are all accredited as well. Transactions are done fully online.
-- Fundrise: This platform is popular in the crowdfunding space because it lets investors browse offerings with filters for risk versus return, location and type of asset. Companies can use Fundrise to finance the purchase of new equipment, new property and other items.
These are just several of the crowdfunding options available to someone wishing to make a commercial real estate purchase. Before using any of these options, however, you may want to speak with a Texas commercial real estate lawyer about the financing options that may be available to suit your needs.
Source: realitybiznews.com, "6 of the best crowdfunding sites for commercial real estate," May 31, 2017