Real Estate is capital intensive, how can investors finance a project
Real Estate is capital intensive therefore real estate developments almost always require outside funding/financing.
Bank loan is one of many debt financing methods for funding a real estate development used in the built environment around the world. Most land breaking developments are carried out by mostly debt financing and little equity contributions.
Bank loans are structured to be long term, they are often extended for 10-20 years or more allowing the investor/developer to pay them off over time while maintaining some liquid assets for future developments.
Investors should not shy away from debt financing or securing a bank loan to carry out a property development. Depending on the scale of your development, you need both Equity investment and debt financing to effectively carry out a real estate development project.
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