
Capital from REIT
Get Capital from REIT for Your Loan
Commercial properties REIT is actually a real estate investment trust specializing in commercial properties. The type of capital operates just like mutual funds. The investors contribute their fund by collecting it into a central pool and use this money to purchase commercial properties. It gives you the required exposure to commercial real estate investments without having to buy properties on their own.
Pros and Cons of Capital from REIT
There are pros and cons related to securing capital from REIT. Be sure to consider the source of capital carefully.
Pros
You can purchase real estate as well as invest in one
You do not have to worry about property tax, upkeep, and insurance maintenance
You can spread the capital amongst several properties
Cons
High requirements by the lender
A lengthy process as many stakeholders and investors are involved
Higher interest rates