A 1031 exchange allows an investor or business owner to sell a commercial property, acquire another, and defer capital gains taxes in the process. The name refers to section 1031 of the United States tax code. When a property is sold for cash, the net proceeds incur a capital gains tax. However, if the investor…
Multifamily financing allows real estate investors to purchase or refinance small multiunit properties with two to four units and large apartment complexes with five or more units. Multifamily loans are good for both new and experienced investors and have interest rates as low as 2.625% with terms up to 35 years. There are four types…
A blanket mortgage allows a borrower to purchase or hold multiple properties under the same financing agreement. Properties held in a blanket loan can be sold without invoking the due-on-sale clause in the mortgage, which requires the loan to be paid in full when a property is sold. This allows you to use the proceeds…
A commercial real estate loan is a lending product from a bank or other financial institution used to purchase, build, or renovate a commercial property. Commercial real estate includes property used for a business purpose, including office spaces, warehouses, storefronts, and production facilities. There are five primary types of commercial real estate loans: SBA 7(a)…
The best hotel financing has multiple uses, high maximum loan amounts, and low interest rates. Different types of loans serve different purposes, such as acquisition, construction, renovation, or maintenance, when financing a large, complex project like a hotel. Below, we have listed the six best types of hotel loans available and the best provider for…
Fix-and-flip loans typically have terms of less than two years, with fast closings in a matter of a couple of weeks. There are several types of loans used for fix-and-flip purposes. Listed below are the five most common and the best provider for each type of loan: : Best hard money lender : Best cash-out…
When your business decides to acquire commercial real estate, you must decide whether to buy or lease the property. If you buy the property, you’re either paying cash upfront or financing the cost of ownership of the property. Once the payment is made in full, you own the property outright. With a lease, you’re paying…
An investment property line of credit (LOC) is short-term financing on a property that isn’t owner-occupied. A lender will place a lien on an investment property in exchange for a revolving line of credit against the property. It operates the same as a home equity line of credit (HELOC). An investment line of credit is…
