Buying without a bank? It is possible! These days, as an entrepreneur, you can buy a commercial property without having to take out a loan from the bank. There are several ways to do this, and it is important to understand them all well before deciding which option is most suitable for you. In this article, we explain exactly what these alternative financing solutions entail, and answer the question, "How can I buy a commercial property without a bank?"
One of the most popular methods of buying a property without a bank is through crowdfunding. Crowdfunding literally means 'financing with the help of many' - rather than one financial institution such as a bank or insurer. In this process, you appeal to private investors who are willing to put their money into your project. These investors pay interest on their investment, but because several people are often involved, interest rates are much lower than with traditional financing methods that go through banking systems. In addition, you don't necessarily need to connect interested parties; Immotokens can do that for you.Thanks to crowdfunding, it is made possible for start-ups and entrepreneurs with limited start-up capital to still tackle large-scale projects - such as buying their own premises!
Besides crowdfunding, there are other ways to finance (a business) property without the intervention of a bank: leasing agreements, mortgage loans or private equity investments, for example. With leasing, one pays periodic remittances to something one will never eventually own (although you can often buy out the lease at the end); with private equity, individuals co-invest directly in the property; while with mortgage lending, real estate as collateral is necessary.
