Undeveloped Property: Financing Options for Interested CRE Investors
When a commercial real estate investor wants to buy a piece of property, the type of property matters greatly from the bank’s perspective. There is a difference between property that has prebuilt structures on it and undeveloped property. It can often seem easier to get loans for existing property, as lots that have been finished will tend to provide the lender with more peace of mind.
It Can Be Difficult With Traditional Lenders
When it comes to the traditional lenders out there, many worry about risk associated with these undeveloped properties. For this reason, many of the traditional lenders will require that you provide them with a higher down payment. They may also require loan terms that are not favorable to your needs, such as only offering short-term loans. Some of the other issues with getting loans for undeveloped property from a traditional lender who does not understand this field could include the need for more collateral, a higher interest rate, and higher payments.
Financing Options for You
However, that certainly does not mean that you can’t find financing options for undeveloped property, particularly if you are interested in commercial real estate investments. You can find a range of different options available when it comes to loans and financing for these types of properties. There are conventional loans, business loans, construction loans, bridge loans, and more. Investors do have options today, and it is possible to get agreeable loans for the undeveloped property that you need.
To learn more about the many options available to finance undeveloped property as a commercial real estate investor, be sure to get in touch with Wexum soon. We look forward to helping you find a loan option that can work for your real estate investment needs.