Real estate and construction financing

What it is

In an acquisition, the company buys the property and the property itself serves as collateral under a fiduciary lien. In construction, funds are released against site inspections as the work advances.

This is the operation that turns rent into assets. In many cases the instalment lands close to what the company already pays in rent.

When it makes sense

• The rent already covers the instalment on a property of your own
• The plant needs expansion and the schedule is defined
• There is land you already own sitting idle, waiting for construction

How it works

• DefinitionAcquisition or construction, amount and term.
• Project and appraisalProperty appraisal report, or the works schedule with costs and stages.
• ApprovalAnalysis of the company and of the property.
• Registration and releaseRegistry office, then release of funds, in full or by stage.

What you will need

• Title record of the property or the land
• Project and schedule, in the case of construction
• Balance sheet, income statement and revenue
• CNPJ (Brazilian company tax ID) registration and articles of incorporation

The list can change with the institution and the size of the deal. I confirm what is actually required before you gather a single document.