Blog22 January 2021

Financing commercial real estate: safe and lucrative

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More and more investors are financing commercial real estate. They consider it a safe form of investment that is also lucrative. At Briqwise, an investor receives an average 6.95% interest on a real estate loan. What is the reason why this relatively new form of investing is emerging? We ask Briqwise’s co-founder and partner, Frank van Dongen.

“First of all, it has to suit you. Of course there are all kinds of very different investor profiles. The opportunist who likes the tension of the stock exchange, who hopes for that big hit and is not afraid to take risks, will probably find our product boring. That’s fine, because we are not looking for that type of investor. We are looking for people who are conservative and who think three times before they take out financing. For that group we have a very solid product: financing commercial real estate for SME’s/Business entrepreneurs.

Boring? You could call it that. But if you see around 6.95% interest coming into your bank account every month, without having to worry about your investment, that is a very comfortable bit of boringness,” laughs van Dongen.

Property

“The great thing about real estate is that it’s tangible. You don’t put your money in a trend-sensitive or elusive product such as bitcoin, but in something that has always been around and always will be: bricks and mortar. Over the years it has become clear that these retain their value. This is very appealing to investors who finance commercial real estate through Briqwise. A number of them have also purchased commercial real estate themselves in the past, for their own use or for rent.

The big difference is that you now invest in the same solid product, but you are not the owner yourself. In other words: you are free of all the hassle of maintenance, management and / or hassle with tenants. And our investors are also completely unburdened by the administrative handling.

Many advantages

That makes financing commercial real estate through Briqwise very attractive. But there are more certainties and benefits. The real estate is appraised with the utmost care. We pay close attention to a responsible LTV. Investors receive the comfort of first mortgage security. And finally, Briqwise takes over the debtor risk, should the borrower fail to meet his monthly interest and repayment obligation. That certainty is also recorded by a solicitor. ”