Real estate developers need financing that fits their projects and plans.
In this article we are going to give you the most complete information on the developer loan and real estate crowdfunding, so that you know 2 types of non-bank financing alternatives for real estate developers
1. Bridge loan for real estate developers
Every real estate project needs resources. He bridging loan Aimed at real estate developers, it is an ideal solution to start a project when you have land or access to land.
It is called a bridge because this type of loan is granted as short-term external financing, while the bank grants the credit to the developer. Or also, it can be canceled at the end of the promotion, with the sale of the homes or premises.
Characteristics of the bridging loan
The bridging loan offers property developers:
- Short-term loan so your repayment will be within a maximum period of 24 months.
- It is a different type of financing than banking, granted by an investment fund so it can be granted to people who have debts, as long as their businesses pass the solvency study.
- It gives the promoter the opportunity to start a project, obtain licenses, hire the construction company, acquire land for the project and everything necessary to develop or finish a real estate project.
- The promoter has greater tax savings and expenses if you choose this financing method.
2. Real estate crowdfunding
As a second alternative, real estate crowdfunding allows you to finance smaller projects than those financed by investment funds. Although, it is a good alternative for any type of project.
Real estate crowdfunding works through multiple investors, who cover with their contributions all the financing needs of real estate developers.
crowdfunding allows financing operations without the need for traditional banking.
Advantages of real estate crowdfunding:
- You can finance new construction projects, purchase of real estate for rent or sale, and reform of real estate for subsequent sale.
- Very clear regulation that protects both promoters and investors.
- Diversification: you can access different types of projects at the same time, which will be totally differentiated on crowdfunding platforms.
- All types of real estate projects are accepted by the different real estate crowdfunding platforms.
Real estate crowdfunding is still a different way of obtaining financing, but one that provides significant advantages over traditional investment.
Alter Finance solutions for property developers
The bridge loan, like real estate crowdfunding, are the financing methods that best suit the business needs of real estate developers.
Both solutions allow your projects to develop, offering the best financing alternatives to carry out your plans and enjoying advantageous advantages:
- Speed in all procedures.
- Financing customization.
- All procedures can be managed electronically.
- Advice during the process.
- Transparency and security.
- You can finance more than one project at the same time.
Are you a secure alternative financing company for real estate developers?
Alter Finance is a leading company in helping real estate developers and companies to have access to non-bank financial solutions. Always faithful to our mission of providing Spanish companies with an alternative financing service.
Our experience supports us, we offer tailor-made recommendations for each client, under a rigorous analysis of the needs of your business organization or entity. ohWe will wait for you!