Turning office buildings into living space is big business. Take advantage of the strong multifamily market by investing your commercial loan strategically in one of these promising projects.
High demand for residential property is a major force in today’s commercial real estate market. Several factors, including a large population of Millennials putting off home ownership, have created a huge need for residential space that is expected to continue growing. Building from the ground up is a huge investment, however, preventing many companies from cashing in on the strong multifamily market.
That’s why redevelopment projects have become so attractive. With the help of a commercial loans, your company can invest in converting existing property into a state-of-the-art multifamily asset. A carefully selected building and the right upgrades can make this redevelopment project quite profitable for your business as well. As you develop a strategy for redevelopment, be sure to ask yourselves these questions:
1. Do You Have Access To Quick Capital? You may qualify for the credit necessary to invest in a redevelopment project through traditional means, but that doesn’t mean you won’t want access to quick capital in the back of your pocket. Emergencies happen, deals fall through and chances are the redevelopment budget is going to get even bigger before the project is completed. You can offset these unexpected cash shortages with the help of a reliable private lender.
Hard money lenders offer flexible lending terms and a short turnaround once borrowers have submitted an application. Make sure your company knows where it can get access to rapid funds before committing to a redevelopment investment.
2. Could Mixed-Use Maximize Your Opportunities? In some cases, completely converting an office space into a residential property may not be the most effective redevelopment strategy. This is especially true if adjacent office buildings continue to succeed as income generating properties.
You may be able to better leverage the value of your Commercial Loans investment by converting only some of the building into residential space and updating the remaining office space with modern decorations. This mixed-use approach is more popular than ever, especially if the surrounding area is sustaining similar projects.
3. Will Local Authorities Facilitate Your Timeline? It’s not uncommon for local authorities to place holds on conversions, especially if local policies are already clear on the matter. Your next investment project could be stopped cold if the city prohibits commercial to residential conversions. In other cases, you’ll have to prove to the city that demand exists for the new residential or mixed-use property you plan to bring to the market. Doing research about local zoning and use conversion policies before zeroing in on a location will save your company from hours of extra work and backtracking.
Don’t Overlook These Key Considerations When Investing Your Commercial Loan
You’ll find many of the best redevelopment projects near areas that are already successful. Proximity to high-traffic areas is a key clue that your company is investing in the right project.
Analyzing a property for a quick turn-around is easier said than done. Rely on as much expert input as you can when making your investments.
Whether they are funding your initial investment or providing some much-needed emergency funds, private lenders will likely play a crucial role in your redevelopment plans.
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.