Like financing in other fields, real estate financing is also divided into equity financing and debt financing.

Equity financing is easy to understand. Real estate transfer project company's equity brings new funds to the company. Many real estate project companies are empty shells. In fact, it can be understood as "one party goes out of the land and the other party pays", and part of the equity is transferred to support development. After the completion of the project, both parties will share the benefits in proportion to the equity. Listing is also a kind of equity financing. In the past few years, the financing in the real estate sector was mainly creditor's rights, and equity financing was less, mainly for small companies with insufficient funds. In the past two years, with the upgrading of real estate regulation, short-term debt financing has been unable to meet the demand, equity financing has increased substantially, and RMB real estate equity funds have also begun to rise.

There are many kinds of debt financing in the real estate field, such as advance payment, bank loans, usury, corporate bonds, trusts, etc ... Because of the high gross profit margin of real estate, developers who get land sometimes prefer to endure usury with an annualized interest rate of 20% rather than sell their own shares and share profits with others, so the debt ratio of real estate enterprises is relatively high. Bank loans and usury are common and easy to understand. Corporate bonds are the privilege of listed companies. Let me briefly talk about trust. According to the data I have seen, as of the third quarter of 201/kloc-0, the total assets of China Trust have invested about 700 billion yuan in real estate, which is a very large number and occupies an important position in non-bank financing channels of real estate. The main source of profits of trust companies is also real estate trust. After 20 10, bank real estate development loans were tightened, and it was easier to issue trust products than bank loans. The annualized interest rate is generally between 9%- 12%, which is acceptable. However, real estate trust products also have a tightening trend.