Investment Challenges in US Real Estate

Both the good and the bad can occur while investing or developing in US real estate. This is applicable for both commercial and residential land projects purpose built for those foreign investors who are interested in American real estate. The scope of such investments ranges from purchasing to selling and includes renovation along the way. Development of new real estate is included as well.

The real estate market in the United States continues its status as one of more attractive investment options for both domestic and foreign investors. It is vital to note that, despite multiple advantages, these investments come with a number of new processes and laws which can considrably affect the bottom line.

Financing is a big problem faced by both investors and developers of commercial development of higher values. Investors and developers are compelled to partner alternative lenders in case they are unable to acquire loans from any standard bank.

Even though these alternative lenders could loan the requisite capital money for projects, the interests charged are much higher. These financial transactions also carry significant upfront fees payable on tasks like underwriting, administrative fees, commitments, site visits and many others. These charges will impose a stranglehold on the profitability of any project, thus leading to the potential loan defaults. A number of scams like upfront fee scams, lenders who will not lend the needful and lenders termed gate keepers sponge money off the developer.  

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