Auction.com Launches CRE Finance Portal
- May 20, 2015
Financing for investors making acquisitions through online real estate marketplace Auction.com just got a lot easier. Auction.com L.L.C. has introduced its new Commercial Real Estate Financing Portal, allowing investors to apply for financing in a quick and convenient process on the website.
Bidders can do it all in one spot. They can submit financing applications, view their loan application status–in real time–and communicate with lenders.
“This just naturally seemed like the right time to add direct access to financing for the assets on our site as a value-added service to our customers,” Rick Sharga, executive vice president at Auction.com, told Commercial Property Executive. “Financing is in high demand among commercial buyers, especially as CRE prices continue to rise. In fact, we recently estimated that about half of the commercial investors buying properties on the Auction.com platform are financing their purchases–and we suspect that number could be even higher.”
It’s a win-win. The greater the buyer liquidity, the greater the pool of potential buyers.
Auction.com also expects the financing portal to be attractive to those who are accustomed to a more traditional process.
“As we continue to grow our inventory of non-distressed properties, we’re likely to attract an influx of more traditional buyers, whom we expect might appreciate access to more traditional financing options,” Sharga added.
Auction.com’s preferred lenders will provide investors with financing options, and they’ll be counted towards a buyer’s proof of funds.
With an increasing number of investors from around the world, Auction.com has not excluded its international buyers from the opportunity to avail themselves of the new financing portal.
“The lenders we are working with will make loans to non-U.S. borrowers with some exceptions,” Sharga concluded. “Specifically, a non-U.S. borrower must have at least one U.S. national as a partner, or the must have set up a U.S. entity. And, in some cases, the lenders won’t accept foreign nationals as recourse guarantors.”
Every portal must have its rules.