CRE acquisitions usually entail taking out traditional bank loans to get the necessary funding to cover costs. However, when commercial real estate investors are attempting to flip a number of properties at once, separate loans for multiple properties can be challenging, at best. Additionally, banks have very prohibitive requirements, and independent CRE investors do not have the collateral or financial history needed to access the bank loans they need. As an alternative to traditional lending channels – and to prevent numerous financial transactions which can severely compromise credit ratings – some investors are using special lines of credit for CRE acquisitions.
CRE Lines Of Credit
Lines of credit for CRE acquisitions are part of a special program which gives investors one source of funding, usually for fix and flip projects. These lines of credit give commercial real estate investors the financial power needed to purchase properties for fix and flip projects without having to navigate the red tape of traditional bank loans. CRE investors can draw upon this source as needed, rather than being forced to take on a lot of debt all at once with bank loans.
What Properties Types Can This Be Used For?
While these lines of credit are designated for commercial properties, in general, they are typically used for single family homes, multifamily rentals, and apartment complexes. CRE lines of credit can be used for purchasing properties, renovation costs, and even those more immediate expenses when getting a house or similar residential property ready for listing. The major advantage of having these lines of credit available is that the funding can cover multiple CRE acquisitions in a small time frame. This keeps business in motion, rather than having to stop progress and re-apply for traditional bank loans at every step. Lines of credit increase potential sales, and make juggling multiple projects more efficient.
How To Get Lines Of Credit For CRE Acquisitions
These lines of credit cannot be found through traditional lending channels. Investors need a reliable finance partner with the capital resources to fund multiple CRE acquisitions. Lavan Financial Group offers commercial real estate financing programs for purchasing, rehab, and refinancing – including lines of credit for CRE acquisitions. Call our offices at 203-308-4547, and our team will work with you to provide the right financing solutions to help you meet your goals to ensure long-term success.