These types of financing are usually used when a buyer and seller want to have a more creative and flexible way of financing.
Here are the types of creative financing that can be used in commercial real estate transactions:
Owner Financing: It is a type of financing wherein a seller acts as a lender and finances the buyer’s purchase of the property. The buyer has to pay directly to the seller over a period of time, it usually comes with interest.
Lease-to-Own: The buyer leases the property from the seller for over a period of time, at the end of the leasing period there will be an option to purchase a property.
Joint Venture: This type of financing usually involves another investor purchasing a property. Each partner has a fair share of ownership and profits for the commercial property.
Hard Money Loans: These are short-term loans that are usually obtained from a private lender. A commercial real estate property secures Hard Money Loans and it is usually used to purchase a property.
A Hard Money Loan is one of the common types of Creative Financing in Commercial Real Estate transactions when a buyer needs to purchase a property quickly, Hard Money Loan is the best option with a fast approval rate you can obtain the financing quickly.
The advantage of a Hard Money Loan is easier to obtain than traditional banks because lenders focus on evaluating the value of the property rather than the buyer’s credit score or income.
Overall, creative financing is useful for commercial real estate investors and buyers who may not have access to traditional loans and those who want to have a more flexible way of financing. Hard Money Loans are one of the best options if you are planning to purchase a property quickly. It’s important to know that all types of creative financing come with risks. That’s why always choose the best type of financing that works for you.
It’s always best to consult a lender specializing in commercial real estate lending. With the fast closing rate as long as 2 weeks and you can get your funds in just 48 hours! Century Capital will definitely be here to provide you with the best services. To know everything about Century Capital Reach Victor Cohen at 201-880-7850 ext 102 or send an email at victor@centurycapitalfinance.com
