Indianapolis CRE markets are rife with opportunities for ambitious investors and developers. However, there are two major methods of generating revenue through Indianapolis CRE properties, and many people often get caught up on which is better.
Buying And Selling Indianapolis CRE Properties
Certainly buy and selling Indianapolis CRE properties is one of the simplest methods, and with a potentially high monetary yield. Local commercial real estate investors purchase Indianapolis CRE properties at well below market value, and then restore them to greatly boost the selling price. Additionally, some property developers will build units from the ground up on vacant land and sell them as condos, single family houses, or office space, depending on the designation.
Renting Our Indianapolis CRE Properties
For those seeking steady revenue, renting out commercial properties may be the solution. From multifamily residences to office space, motels, hotels, and more, renting out property space yields revenue on a monthly basis. While rentals properties may not yield the one time revenue that selling a property does, the revenue from rentals is steady, and ca be multiplied by the number of units available. In some cases, when sellers are waiting for local property markets to increase in value, they will rent out their properties until the right buyer comes along.
Financing Indianapolis CRE Properties
There are a number of methods available for financing commercial real estate. SBA and conventional loans are widely used for purchasing properties. Bridge loans are ideal for covering time-sensitive expenses on renovation projects while larger loans are still in the pipeline. Construction loans provide working capital to ensure there are no delays on large projects. Blanket loans provide capital to make improvements to multiple properties at once, instead of taking out a separate loan for each property. Instead of taking on debt, some Indianapolis commercial real estate investors may opt for mezzanine loans, because of the equity component. Still others use CMBS conduit loans to acquire properties and save money in the process. Of course, there are more creative methods as well, such as seller-carry financing, where the property seller finances the purchase, with an agreement so that the buyer pays directly to the seller over a certain period of time.
Liberty Commercial Capital Finances Indianapolis CRE Properties
At Liberty Commercial Capital we specialize in financing Indianapolis CRE properties. From first-time investments to large construction project, and everything in between, we provide solutions tailored to the needs of our clients to ensure success. Contact us today to learn more about how we can help you.