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

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Real estate fundraising hits lowest level since 2013
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Brexits and Bubbles: How investors view Europe’s shaky real estate market

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Brexits and Bubbles: How investors view Europe’s shaky real estate market
From left: 172 Madison Avenue, 100 East 53rd Street, Woolworth Tower, 53 West 53rd Street, 615 10th Avenue

Loan wolves: Bankers are stalking developers as debts come due

It was one of many signs last year that a growing number of New York City condo developers are...

Loan wolves: Bankers are stalking developers as debts come due
Pope Francis (Credit: WIkipedia, iStock)

Unholy real estate strategy: Catholic churches shuffle properties to shield billions from sex abuse victims, report says

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Unholy real estate strategy: Catholic churches shuffle properties to shield billions from sex abuse victims, report says
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Real estate created the Chinese elite. Here’s what happens next

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Real estate created the Chinese elite. Here’s what happens next
160 Imlay Street

Est4te Four gets $74M inventory loan for Red Hook condo

Italian developer Est4te Four closed a $74 million inventory loan for its stalled, 70-unit condominium in Red Hook. The...

Est4te Four gets $74M inventory loan for Red Hook condo
As crowdfunding startups rethink their business model, many are becoming more like traditional real estate investment firms (Credit: iStock)

To survive, crowdfunding firms are remaking themselves

Starting in 2012, a wave of crowdfunding startups sought to take advantage of new regulations to revolutionize real-estate investment...

To survive, crowdfunding firms are remaking themselves
1633 Broadway, 55 Hudson Yards, and 650 Madison Avenue (Credit: Google Maps)

A pair of billion-dollar refis tops the list of Manhattan’s largest real estate loans in December

The top 10 Manhattan loans recorded in December totaled $5.4 billion, two-and-a-half times as much as November’s total. Two large financings broke the one...

A pair of billion-dollar refis tops the list of Manhattan’s largest real estate loans in December
A rendering of Broadway Triangle and an aerial of Broadway Triangle (Credit: Magnusson Architecture via Department of City Planning and Google Maps)

Rabsky, Spencer land $70M refi for Broadway Triangle site

Brooklyn developers Simon Dushinsky and Joel Gluck have secured another one-year loan for their massive Broadway Triangle development in...

Rabsky, Spencer land $70M refi for Broadway Triangle site
Renderings of The William Vale and Denizen Bushwick (Credit: iStock)

All Year’s rating outlook turns negative as bondholders reject two amendments

All Year Management may face more trouble on the horizon as the outlook for its two unsecured bond series,...

All Year’s rating outlook turns negative as bondholders reject two amendments
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