Real Estate Finance

Real Estate Finance

In order for buyers to buy, sellers to sell, and developers to keep developing, the real estate industry requires financing that comes from a variety of places.

Real Estate Finance Q&A

How is real estate financed?
Whether it is a small residential purchase or a huge new commercial development, people buying real estate may use loans to finance their projects. These can come from private banks, government loans, individual lenders, REITs, investors, and more. These loans often take the form of mortgages secured by liens on a property. Real estate brokerages and other firms require financing as any corporation does. Real estate is also tied into the financial industry itself, as real estate is often used as an investment and can be part of individual or corporate assets.
Who finances real estate?
Many international and US banks finance real estate via mortgages and other types of loans. Individuals can also invest in real estate. Companies may form real estate investment trusts (REITS), and it is possible for individuals to buy stock in these commercial real estate portfolios. Development firms also often receive loans from banks and other investors in order to complete their projects.
Who uses financing for real estate?
Both individuals and large corporations may require loans and other types of financing to purchase and develop real estate. As with any major industry, financing of many types is required.

Real Estate Finance Top Stories

August 30, 2019With a cooling trade war, stocks perform well, including real estate.
August 15, 2019A Chelsea apartment building owner is suing Maverick Real Estate Partners for demanding payments it’s allegedly not entitled to.

The Latest

Redwood Estates in Thorton, Colorado and Brookfield Asset Management's Bruce Flatt. (Bayshore Home Sales, Brookfield)
National

Brookfield snags $2B refi for massive mobile home portfolio

UPDATED, 8:09 a.m., April 8, 2021: An affiliate of Brookfield Asset Management snagged a $2.2 billion refinancing on its...

Brookfield snags $2B refi for massive mobile home portfolio
Overall, mortgage credit availability is at its lowest level since 2014. (iStock)
National

Mortgage lenders play hard-to-get

The housing market may be on fire, but the lending environment is tougher than ever. Wary of making risky home loans during the pandemic, lenders have tightened standards, particularly for first-time homebuyers, reported the...

Mortgage lenders play hard-to-get
Larry Silverstein and The Denizen in Brooklyn above; and Scott Rechler with 555TEN in Hudson Yards top right. (Getty)

The art of the (discounted) deal

One of the biggest investment-sale bargains in New York since the beginning of the pandemic happened just last month. That’s when Scott Rechler’s RXR Realty acquired a 42 percent stake in hundreds of Manhattan...

The art of the (discounted) deal
Centrale at 138 East 50th Street and Ceruzzi president Arthur Hooper (The Centrale NYC, Hooper via Sasha Maslov/Illustration by Kevin Rebong for The Real Deal)

Korean lender sues for $40M over Ceruzzi condo mezz loan

When South Korea’s Meritz Securities put together a $350 million inventory loan for a Ceruzzi Properties condo tower last...

Korean lender sues for $40M over Ceruzzi condo mezz loan
1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)

CIM closes on $400M refi for 1440 Broadway

The commercial mortgage-backed securities market continues to be a big source of refinancings for Manhattan office properties. CIM Group has secured a $400 million refinancing for the 740,000-square-foot office building at 1440 Broadway near...

CIM closes on $400M refi for 1440 Broadway

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