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Investment options for commercial real estate projects

Any new business opportunity can leave entrepreneurs or developers in need of capital to get a company or project off the ground. This can be especially true of complex real estate projects. Whether a commercial space development, the creation of a residential complex or something else, these undertakings require extensive financial backing. For this reason, many Florida businesses seek investors in these cases.

When considering investor capital, there are different options from which to choose. Each variety of investor comes with its own set of pros and cons that can affect the ultimate viability of a project and must be considered before entering any final contracts. As described in an Under30CEO.com article, two common forms of investment funds are either venture capital or angel investors. Venture capital may be a more realistic option for commercial real estate projects because angel investors typically cap out at $1 million. Depending upon how large a project is, this may simply not be sufficient capital. 

Venture capitalists can provide large investment dollars but also expect high rates of return. They may also request some level of control in the construction or operation of the final project. When searching for financing options for a construction job, Forbes suggests utilizing some online sources such as AngelList as well as combing professional and personal networks. No matter the route, a targeted approach can help businesses find those investors that are most aptly matched for their projects. 

Funding sources for real estate ventures will require time to secure and proper contract development. Taking the time to find the right type of investor can help to provide the level of success desired down the road.

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