| Commercial real estate ventures are often
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| | with high net worth individuals may be
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| very expensive and require multiple
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| | working with clients that are in need of
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| sources of funding. Typically, about 70%
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| | a tax write-off - something that real
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| of the project can be financed with
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| | estate investment can offer. Other
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| long-term loans, but the remaining 20%
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| | financial professions may also be able to
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| (accounting for 10% of your own equity)
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| | offer referrals.
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| must be financed with outside equity. The
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| | Another source of equity is the seller.
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| investors providing this equity can be
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| | Those that are selling existing buildings
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| difficult and expensive to find at times.
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| | may be interested in becoming minority
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| Commercial real estate ventures offer
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| | owners while those selling land may be
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| three things to equity investors. First,
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| | able to offer similar terms. Another
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| investors are entitled to receive a
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| | thing to consider for land owners is a
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| portion of the net operating income from
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| | land lease over 100 or more years. This
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| the project through a dividend. Secondly,
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| | option saves you immediate money up-front
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| investors are entitled to their share of
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| | and can lessen the amount of money that
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| the profit when the commercial real
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| | you need to borrow and raise.
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| estate is sold. And finally, investors
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| | The last resort is a broker, who can cold
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| are entitled to a portion of the tax
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| | call their clients until they create a
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| write-offs associated with the real
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| | suitable list. Unfortunately, they charge
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| estate project - namely, the interest
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| | a hefty fee, so this should be used as a
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| payments.
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| | last resort. In the end, it can be
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| Now, all of these may seem like great
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| | extremely hard to find suitable
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| reasons, but it can still be hard to find
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| | investors, but there are several sources
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| investors willing to jump on board. One
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| | to check before laying out the cash for
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| of the best ways to find investors is to
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| | an expensive broker!
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| talk to your accountant. Those that deal
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