There are two main financing channels I know, one is debt financing, and the other is equity financing, which cover the financing methods of most enterprises. Basically, it is also applicable to most enterprises. The real estate industry has some unique characteristics of its own, which is slightly different from this.
equity financing means that the company absorbs foreign capital by allocating part of its equity. For example, my company is developing very well now, and then I will prepare a 15% equity. If a foreign investor invests, he will buy my 15% equity, so will he give me money? Although I lost some shares, I didn't pay any cost, and I couldn't give it to him after he used the money. Because equity is not about withdrawal, it should be said that it is a kind of equity financing. Of course, there are also stocks of listed companies themselves, which is also a kind of equity financing.
debt financing is a way for companies to obtain external liabilities by issuing bonds, which should be said to be used by many companies. The characteristic of debt financing is that the cost is slightly higher, but it has no effect on the company owners to control the stability of the company's shareholding structure. When the company runs out of money, I issue 2 million bonds. If most investors, whether institutional investors or ordinary investors, think that my company is developing well, there is no problem in repaying the principal and interest, and there is not too high risk, then I have sold this 2 million. As long as I repay the principal and interest when it is due, I have already got this money, and I have completed the financing process.
The real estate industry has different characteristics from other industries, that is, the debt financing ratio of the real estate industry itself is relatively high, because the asset-liability ratio of normal companies has exceeded 7%, but now look at several asset-liability ratios in the real estate industry, but what does 1% mean? That is to say, it has as many liabilities as it has assets, and once the capital chain inside it collapses. That is to say, the company can't get much money even if it loses all its money, so many real estate companies look at him as rich, but in fact he is in a lot of debt.