REAL ESTATE FINANCE

Real estate finance is a thriving practice area at the Law Office of Finley Stetson. Simply, this means an investor borrows money to fund an impending deal. Because every deal is different, the choice of financing a real estate transaction varies greatly.

In most cases, borrowers will finance a real estate transaction by obtaining a loan from institutional lenders, national or community banks, or the Small Business Association. Working with a traditional lender has its positives and negatives. On the positive side, traditional lenders often have the most favorable interest rates. On the down side, these lenders often require substantial documentation and the process can be very long. Because of required documentation and time required to obtain traditional financing, many borrowers will seek financing from private lenders.

Private lenders are able to move quickly and often do not require the documentation that most institutional lenders demand. However, in exchange for the low documentation and expediency, the interest rates on private loans are usually significantly higher than tradtional funding and the repayment terms are typically shorter.