Investing in real estate to diversify your wealth portfolio
To help you pursue your commercial real estate ownership goals, the specialists at Bank of America draw upon these strengths: regional knowledge of the real estate market, expertise in wealth management and the extensive resources of a leading financial institution.
At Bank of America, we view borrowing for the purchase of investment real estate as a strategic wealth management tool. Bank of America can assist high net worth clients looking to diversify their balance sheet or investment portfolio. We can offer access to financing for a variety of commercial investment real estate properties, including but not limited to:
- Apartments (non-owner occupied)
- Farm, ranch and timberland
- Industrial properties
- Office buildings
- Retail centers
- Owner occupied commercial real estate
Investing in real estate may enhance your overall wealth management strategy through:
Diversification1 — Investment in real estate can contribute to a well-balanced, diversified portfolio because its performance is often not correlated to the equity markets.
Cash flow — Real estate investments can create a stable cash flow source for retirement and other needs.
Favorable tax treatment2 — Taxpayers who itemize deductions may be able to deduct investment interest when the loan is used to purchase property held for investment.
Customized Financing Options and Risk Management
Our underwriting sophistication and capabilities allow us to create financing based on your unique needs. We have the knowledge and product expertise to create a customized, flexible loan structure based on your balance sheet, asset allocation, cash flow, tax considerations and general wealth-building objectives.
We can offer a comprehensive array of financing solutions with competitive features and terms — from the traditional to the complex. We offer variable-rate financing options and interest rate hedging strategies. A customized credit solution that includes an interest rate swap, cap, collar, or other flexible strategy may help you manage interest rate risk while meeting your income and borrowing requirements.3
Dedicated Advice and Access
Investment real estate lending at Bank of America offers you a broad range of experience and the ability to bring you choices and flexibility many other providers don't offer. We understand real estate, and our specialists within Bank of America and across Bank of America can assist you with many different property types, providing guidance and access to the appropriate type of financing for you.
The Resources of a Leader
In addition to customized commercial real estate financing, Bank of America can deliver access to a wide spectrum of credit capabilities and a depth of resources, expertise and capital strength that few financial institutions can match.
The critical dimension we bring to this relationship is a high level of personal service, because you work with knowledgeable credit executives who seek to ensure that your credit strategy effectively complements the other key components of your wealth management plan. Supported by the capital base of Bank of America, we have the flexibility to fund significant loans while offering competitive terms and interest rates. Because time may be a critical factor as you evaluate different financing options, we provide a prompt and informed response to all credit requests.
Considerations and Risks
- Customized lending solutions involve special risks and may not be appropriate for all clients.
- Customized lending solutions may be subject to additional credit and legal approval.
- Clients should consult with their independent attorney, tax advisor and investment manager before implementing any financial, tax or estate planning strategy.
- Clients should also consider their portfolio diversification requirements, time horizon, risk tolerance, debt tolerance, tax situation and any cash flow and appreciation objectives they may have.
3 Hedging strategies can result in higher return potential but also higher loss potential. Prospective investors are required to meet certain qualifications and acknowledge that they understand the risks associated with certain hedging strategies may not be suitable for all investors.
“Bank of America” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, leasing, equipment finance and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking or brokerage affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofAML Securities, Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Merrill Lynch Professional Clearing Corp., all of which are registered broker-dealers and Members of SIPC, and in other jurisdictions, by locally registered entities. BofAML Securities, Inc., and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Merrill Lynch, Pierce, Fenner & Smith Incorporated is registered as an introducing broker with the CFTC and is a member of the NFA.
Credit facilities are provided by Bank of America, N.A., Member FDIC, its subsidiaries or other bank subsidiaries of Bank of America Corporation, each an Equal Opportunity Lender. All loans and collateral are subject to credit approval and may require the filing of financing statements or other lien notices in public records. Asset-based financing involves special risks and is not for everyone. When considering an asset-based loan, consideration should be given to individual requirements, asset portfolio composition, and risk tolerance, as well as capital gains, portfolio performance expectations and investment time horizon. A complete description of the loan terms will be found in the individual credit facility documentation and agreements. Clients should consult with their own independent tax and legal advisors.
Credit and collateral subject to approval. Terms and conditions apply. Programs, rates, terms and conditions subject to change without notice. Equal Housing Lender.
Bank of America is a division of Bank of America, N.A., Member FDIC, and a wholly-owned subsidiary of Bank of America Corporation. Bank of America, N.A. and U.S. Trust Company of Delaware (collectively the “Bank”) do not serve in a fiduciary capacity with respect to all products or services. Fiduciary standards or fiduciary duties do not apply, for example, when the Bank is offering or providing credit solutions, banking, custody or brokerage products/services or referrals to other affiliates of the Bank.