The real estate industry may be ailing but there are still existing investments are beginning to “heat up”. However, tight credit is the crisis’ essential condition but the existence of both private and government grants for real estate investors had not been ruled out. The bulk and amount of these grants cannot be compared to what then can be offered by the banking and financial systems under normal conditions. It is available, however the amount available for the industry is enough to fill particular parts of the investment gap created by the crisis or business start ups.
On the other hand, grants are extended by private groups and other institutions. The U.S. Federal Laws authorized its various executive agencies to extend grants as well. Government grants for real estate investors are reportedly more difficult to avail than those extended by private groups. Nevertheless, paper works should not stop investors to avail of grants. The goal is to encourage startups and other investments. Aside from monetary considerations to fill up capital shortages, qualifying for the grant adds up to the investor’s credibility and track record necessary for larger loans.
Each grant has its unique requirements but generally it begins with a project proposal. This entails special skills but there are investors who hire project proposal writers which is an acceptable practice. Among others, the more important qualifications to avail grants for real estate investors are firstly, the type of investor’s property business. There are lesser chances to qualify for grants if the property belongs to high-end commercial category such as malls, condominiums in the heart of a financial center and factory buildings. Then you have to consider the price of the property. Low priced properties are usually the targets of grants. Government grants are usually extended to build homes for the aged, nursing homes, orphanages, home for aids victims, women victims and other similarly packaged properties. If an investor is into malls or gaming business then it can less likely compete with service oriented properties. Location is the third factor to qualify. It is doubtful that properties located in mountains, near rivers and seashores that are quite ideal for leisure will qualify. Besides, the area might be isolated and prone to particular risks. Similarly, properties built in uninhabited areas such as near nuclear reactors are less likely to qualify for a grant. Investment risk is just too high in these types of location therefore is going to be a default than profitable. It is best that thorough study of the grants applied for must suit the type, price and location of property.
Grants for real estate investors are neither interest free nor tax free. These are not charity prizes but intended to stimulate investments to certain extent it can help the community and the industry in general. While pay back schemes of grants for real estate investors are totally different from banks and other financial institutions, paper works involved may be as difficult. These are very competitive and very few succeed in winning a grant.
