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

Brookfield Property Partners CEO Brian Kingston (Credit: Brookfield, iStock)

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Just days after making an $81 million bid to save tapped-out retailer Forever 21, company executives at Brookfield Property...

2020 “will get a little better” after peak year for retail bankruptcies: Brookfield
Renderings of 2300 Cropsey Avenue in Brooklyn (Credit: W&L Group)

An eyesore for ages, Gravesend project site gets $71M refi

The developer behind a 23-story Gravesend project, which sits on a development site that has remained blighted for over...

An eyesore for ages, Gravesend project site gets $71M refi
The Tel Aviv Stock Exchange bull and the William Vale

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New York Community Bank CEO and president Joseph Ficalora (Credit: Facebook, iStock)

New York Community Bank doubles down on multifamily lending

New York Community Bank has a message for the industry: Lending on rent-regulated buildings is still its bread and...

New York Community Bank doubles down on multifamily lending
Renderings of 130-02 South Conduit Avenue and Triangle Equities’ Joshua Weingarten (Credit: Terminal Logistics)

Triangle Equities lands $87M loan for massive JFK warehouse project

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Triangle Equities lands $87M loan for massive JFK warehouse project
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
State Sen. Julia Salazar and Assembly member Harvey Epstein proposed the tax this month in an effort to disincentivize real estate speculation (Credit: iStock, Getty Images)

Experts take issue with proposed tax on mezzanine loans

Experts say a proposed tax on mezzanine debt would raise the cost of financing across the board in New...

Experts take issue with proposed tax on mezzanine loans
Brookfield's largest-ever $15B property fund has invested in properties from New York (666 Fifth Avenue) to Bangalore (the Leela Palace hotel) (Credit: Brookfield, Getty Images, Leela)

Real estate fundraising hits lowest level since 2013

As high-yielding real estate deals become harder to come by, institutional investors are starting to become more selective —...

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Some investors continue to find U.S. commercial real estate as attractive places to park their capital (Credit: iStock)

Brexits and Bubbles: How investors view Europe’s shaky real estate market

For the first time in three years, foreign investors poured more money into U.S. real estate assets than European...

Brexits and Bubbles: How investors view Europe’s shaky real estate market
Pope Francis (Credit: WIkipedia, iStock)

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

Catholic church dioceses across the country are moving around their real estate portfolios and using Chapter 11 bankruptcy to protect assets in sex abuse...

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