Commercial real estate deals are often intricate transactions that often involve substantial financial stakes, multiple stakeholders, and complex legal considerations. Every purchase contract has its own details and nuances designed to protect the parties involved while delivering fair market value. The escrow agent ensures that these contract details are accounted for and met.
Commercial real estate transactions can be more complex and therefore carry considerably more risk with them. Large purchases or sales can make or break the success of a company, so mitigating risk should be one of the primary concerns for all parties which is why the escrow process is commonly used.
There are many financing options beyond traditional bank loans available for commercial real estate, and for good reason. These alternatives offer increased flexibility and unique benefits with loan terms tailored to the real estate opportunity. However, they also tend to be more complex to execute, requiring additional oversight from escrow companies to be completed. In this article, we explore five innovative commercial real estate financing options, detailing their implications for borrowers and how they impact the escrow process.
