How do real estate loans work?
Sep 10, 2009
in
Commercial Property Loans
Commercial real estate loans? How do they work
How do developers get money to build huge skyscrapers?
How do they pay these loans back?
I need details.
Like this post? Subscribe to my RSS feed and get loads more!
One comment
sierraguy72 on September 10, 2009 at 2:17 am
Commercial loans can work several different ways……here is one way:
A developer wants to start a project, first they locate people that invest in their idea (if they can’t handle the expense themselves which is where most of the money is). Then they complete the project on time and under budget. Then one of two things happens, they either run the business or they sell the project to people who knows the field of the project. They then sell space to leasers or renters. Presto, commercial lending.