Have you ever wondered what it would be like to be a real estate mogul? Have you ever thought how rewarding it might be to be an owner of an office tower or collection of investment similarities? Such transactions require a bit of wherewithal with regard to income and assets. confront it, while you might qualify for a $500,000 mortgage can you qualify for a $5 million dollar medical building?
truly, you might. There are private, direct lending groups that do invest in more expensive, commercial similarities and they do so without using a credit line at their local bank; the use each other’s money.
An investment group is a collection of individuals who pool their financial resources together in order to finance real estate. Such investors can garner a meaningful amount of return on their investments. And their investments aren’t some sort collateralized debt obligation hedged with money market funds out of Shanghai. The investments are commercial and residential building that you can excursion by, touch and feel any time you so desire. It’s real estate.
How does an investment pool work? Say you have $100,000 in a retirement or investment account that’s really not doing you much, if any good. What if you and nine other investors pooled your money together and established a $1 million dollar fund? What if you also had an investment manager whose job it was to find investments on your behalf and to seek out borrowers to buy these similarities?
Such programs provide short term financing to borrowers who wish to, quickly, acquire a piece of real estate that just hit the market and their bank can’t move fast enough. But an investment group can. An investment group has its own underwriter who can estimate both the character in addition as the borrower. If the borrower finds a $1.5 million office building for sale, the borrower can put down the $500,000 he has and the investment group puts up the remaining $1 million. Oh and by the way, the investment group will charge 12 percent to use their funds short term. Try and find that sort of return on Wall Street.