Investment properties of all types present opportunities for commercial real estate investors in New York City. From single-unit rentals to industrial and office space, apartment complexes, storefronts, and more – the selection is wide open for investors at every level. When combined with tax breaks such as those offered by Opportunity Zones, NYC investors are positioned to generate a lot of revenue over the next few years. However, there are a few things to know about financing investment properties in New York City before diving into the arena.
Traditional Financing Methods for Investment Properties
The landscape for commercial real estate financing has changed over the years. More programs are available to investors to build, renovate, and purchase properties throughout NYC. By contrast, traditional lending methods have not changed much at all. Many traditional lenders still structure financing for commercial properties just like a loan for someone purchasing a personal home. Additionally, traditional lending channels still view commercial real estate as a high-risk market, and require investors to provide in-depth financials and credit history, as well as proof of salary in order to even be considered for a loan.
Financing Tailored to Investment Properties
Not all properties are the same. As such, NYC investors need funding tailored to the size and scope of their goals. For some, a simple SBA loan is the right fit, and covers acquisitions, owner-occupied commercial properties, and more. Others need more specialized solutions, such as mezzanine and equity financing. For those who find the proof of salary to be a bar of entry, stated income loans are the right solution. For large projects that need ongoing capital, construction loans fit the bill. The issue is that most traditional lending channels do not offer the above financing. For tailored solutions, property investors need to find a lender who understands investment properties as well as the NYC markets.
Financing for NYC Investors
Express Capital Financing offers a wide range of funding solutions for NYC investors. Our team works specifically to provide tailored solutions for transactions and projects of all sizes in New York City. Contact our offices today to get the funding you need for your next investment property.