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

From left: Trinity Investments CEO Sean Hehir and Benchmark Real Estate Group principals Aaron Feldman and Jordan Vogel (iStock, LinkedIn, Trinity Investments)

“Blank-check” companies make a comeback in real estate

The 1980s called. They asked for their investment strategies back. In July, an affiliate of prominent New York-based real...

“Blank-check” companies make a comeback in real estate
30-77 Vernon Boulevard and Cape Advisors CEO Craig Wood (All images via Cape Advisors)

Astoria waterfront project nabs $280M financing package

A joint venture has nabbed $280 million in debt and equity to develop a mixed-income rental property on Astoria’s...

Astoria waterfront project nabs $280M financing package
Starwood Capital Group CEO Barry Sternlicht (Getty)

Starwood eyes $11B raise for real estate, distressed bets

Barry Sternlicht is putting his money where his mouth is. The Starwood Capital Group CEO last month quipped, “when...

Starwood eyes $11B raise for real estate, distressed bets
NY Community Bank president Joseph Ficalora

NYC’s biggest multifamily lender says rent collections are holding steady

New York City’s biggest multifamily lender said today that rent collections in its $31.6 billion multifamily portfolio have remained...

NYC’s biggest multifamily lender says rent collections are holding steady
Maefield Development’s Mark Siffin and 20 Times Square (Google Maps, iStock)

TRD Insights: Untangling Times Square Edition’s “Gordian Knot” of debt claims

The past eight months have been a wild ride for Maefield Development’s $2.4 billion mixed-use hotel and retail project...

TRD Insights: Untangling Times Square Edition’s “Gordian Knot” of debt claims
One Court Square and SL Green CEO Marc Holliday

SL Green puts One Court Square loan up for sale

SL Green Realty is once again looking to its loan book to raise some cash. The REIT is looking...

SL Green puts One Court Square loan up for sale
Starwood Property Trust CEO Barry Sternlicht (Getty)

Starwood Property Trust looks to offload $2B loan portfolio

Starwood Property Trust is reportedly trying to sell a portfolio of loans that it purchased in 2018 as a...

Starwood Property Trust looks to offload $2B loan portfolio
Savanna’s Chris Schlank and Nick Bienstock with 1375 Broadway (Credit: Google Maps)

Savanna closes on Garment District office with $388M loan

The private equity fund closed its $435 million purchase of 1375 Broadway from Westbrook Partners last week, Commercial Observer...

Savanna closes on Garment District office with $388M loan
Texas Republican Rep. Nicholas Van Taylor (Getty, iStock)

Congressman pitching high-risk lifeline for CRE

A real estate financier turned U.S. representative is leading the charge to give the commercial real estate industry a...

Congressman pitching high-risk lifeline for CRE
Related chairman Stephen Ross and Related Companies Portfolio CEO Richard O’Toole withBronx Terminal Market and Time Warner Center (Getty, Google Maps, Wikipedia)

Related lays out $200M debt settlement plan for Tel Aviv bondholders

As the coronavirus crisis was intensifying in late March, auditors raised the alarm that a Related Companies subsidiary might...

Related lays out $200M debt settlement plan for Tel Aviv bondholders
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