Many people living in Florida choose to invest in commercial real estate as a means of generating passive income, particularly after retirement. There are many different types of commercial real estate out there that you may want to put your money in, but you may need to secure funding before doing so.
According to Rocket Mortgage, many people who invest in commercial real estate decide to put their money in multifamily residences or office, retail or industrial buildings. If you are among those looking to do so, you may want to look to the following sources for funding.
Federal Housing Administration loans
The Federal Housing Administration backs and insures FHA loans for commercial projects involving creating housing for older adults, individuals with disabilities and low-income individuals and families. While some such loans are available to both nonprofit and for-profit organizations, others are available exclusively to nonprofits.
Small Business Association loans
You may also be able to secure a loan from the SBA if you are looking to invest in a commercial property that would encourage job creation or business growth. You may be able to use this type of financing to secure owner-occupied real estate or to invest in a hospitality enterprise or self-storage facility, among other possible options.
Bridge loans
A bridge loan is a temporary type of financing that may help you in the interim while you search for a source of permanent financing. Most bridge loans last for between about six months and one year.
While these are some of the more common sources of financing you may need when investing in commercial real estate, it is not an exhaustive list of all possible financing options.
