In spite of the name, real estate has no connection with the
concept of reality (in other words, the law does not consider real
property more "real" than personal property). It has been derived
from the feudal principle that in a monarchy, all land was
considered the property of the king. Thus originally the term real
estate was equivalent to "royal estate".
Real estate is a legal term that includes land along with anything
permanently affixed to the land, such as buildings. Real estate is
often considered synonymous to real property (also sometimes
called realty), in contrast with personal property.
Real estate loans arenít easy. In a weakened economy and state of
war, the commercial real estate loans industry suffered greatly.
Rather, in these last few years, the market has experienced
growth, with loan sales. Just a decade ago you would have
witnessed a liquidity crisis which would bring the industry to a
There are fees, inspections, points ó appraisals, insurance
requirements and a lot more things to consider for real estate
loans. if you plan to stay in one home for a long time, you may
want a fixed-rate mortgage. If you plan to move in a couple of
years, an adjustable rate may be better for real estate loans
With the development of private property ownership, real estate
loans have become a major area of business. Purchasing real estate
requires a significant investment, and each parcel of land has
unique characteristics, a business may specialize in a particular
type of real estate, such as residential, commercial, or
industrial property. In addition, almost all construction business
effectively has a connection to real estate.
In the recent years, the loan sales process has also become
dramatically easier. The Internet plays a huge part in this
efficiency, cutting the process time from 120 days to 45 days due
to online loan analysis, bidding, and due diligence. The Web also
makes it possible to store online data and set debt prices.
Without the Internet, bank debt would probably still be extremely
illiquid today, making commercial real estate loans harder to
There are many types of commercial real estate loans, which mean a
number of lenders that may specialize in what you are seeking.
Whether you need a hotel loan, a mobile home park loan, or an
apartment construction loan, there will be a commercial lender
that wants to finance you. However, many different lenders operate
at varying risk levels, so the more stabilized assets you hold,
the better your chances of obtaining the loan..
Which is better for Real Estate?
An S corporation is not necessarily better than a C corporation,
but rather it depends on the investor's particular tax situation.
For example, an investor who has a working spouse may benefit from
an S corporation, since a loss from the corporation's operations
can be used to offset the working spouse's income. On the other
hand, if an investor has a large profit, she will have income tax
on all profits, whether or not they are reinvested or distributed.
With a C corporation, the individual shareholder is not taxed on
profits until they are distributed (the corporation itself pays
tax on its income, but the first $50,000 of C corporation income
is only taxed at the rate of 15%, which is much lower than
personal income tax rates).