• Veloce Capital

THE DIFFERENT TYPES OF ASSET-BASED REAL ESTATE INVESTING



There are several types of real estate investment, but we always recommend asset-based lending when it comes to real estate investing for many reasons. Let’s dive in and show you just how asset-based real estate investments work.


Why invest using asset-based funding?

Asset-based lending loans are based on the property or project, rather than the personal credit history or cash position of the borrower. This is ideal for investors because they can still invest in real estate despite their previous financial history or current cash flow.

What types of real estate investment are perfect for asset-based lending?

  • Non-owner occupied rentals: If you’re looking to invest in real estate and rent out a single-family property, this is a good option for you.

  • Multi-family: Multi-family real estate investments are just what they sound like. Instead of a single-family home, multi-family properties offer several living spaces. Most commonly known as apartment or condominium complexes, these investments allow you to make more money from a property.

  • Ground up residential developments: Want to build from the ground-up? Build your own residential area or neighborhood.

  • Value-add construction: Some properties, with a little construction, can make a great investment. Value-add construction real estate is based on the value versus resources needed to make it worth your time and money. A consultant can help you figure out whether a value-add property is worth it for you!


Questions to Ask When Investing in Asset-Based Real Estate

Your real estate investment professional will look at asset-based investments and ask a few questions before deciding on an investment that’s right for you. Here are a few questions they’ll ask:

  • What’s the exit strategy for this investment?

  • What’s the anticipated return on this investment?

  • What’s the value of this property as it is now?

  • What’s the value after repairs are made for a value-add construction property?

Every real estate investment professional should do their best to find the safety in each investment. Instead of focusing on debt-to-income ratios and credit scores, your real estate investment team should think more about what each property is worth in the long-term and how it works


Looking to get started in asset-based real estate investment?

Here at Veloce Capital, we can help you as you take the first steps into asset- based real estate investing. We’ll help you set up an entire plan that works for you from start to finish.


For more information please email us at info@velocecapital.com