A hard money loan is short-term, asset-based financing from a private lender, secured by the property rather than your income. In 2026, typical terms are 9.5–12% interest-only, 1.5–3 points, 12–24 month terms, and closings in 5–10 days. Investors use them for flips, bridge situations, and auctions where speed beats cost.

They largely overlap: ‘fix and flip loan’ is a hard money loan purpose-built for renovation projects, adding staged rehab draws and ARV-based sizing. Generic hard money may fund non-renovation needs like bridge or land.

Rehab funds are held back and released in draws as work completes: you submit a draw request, the lender inspects (often via app or third party), and funds release within days. Budget for 3–6 draws on a typical project and inspection fees per draw.

ARV (after-repair value) is what the property will appraise for after renovation. Lenders set it with an as-repaired appraisal or BPO using comparable renovated sales. Most cap total lending at 70–75% of ARV — that cap, not the purchase price, usually determines your max loan.

True 100% of everything is rare. Some lenders fund 100% of rehab plus up to 90% of purchase for experienced flippers, which on a strong deal can approach 100% of total cost — but expect to bring at least closing costs, reserves, and points, and to show liquidity.

Most national investor lenders cover 40+ states but commonly exclude a handful (frequently the Dakotas, Vermont, and others by license posture). Matching a deal to a lender licensed for that state is one of the main things a matching platform solves.

Most lenders offer paid extensions (commonly 1–3 months per extension for a fee of 0.25–1 point). Repeated extensions get expensive and signal distress — build a 20% time buffer into your plan and communicate early.

Yes. Ground-up construction loans fund land plus vertical build with stricter draws, experience requirements, and slightly lower leverage than rehab loans. Some fix-and-flip lenders have ground-up programs; many don’t.

A DSCR loan qualifies you on the property’s rent versus its payment — the Debt Service Coverage Ratio — instead of your personal income. No tax returns or W-2s. 2026 norms: 1.0–1.25x minimum ratio, 75–80% LTV, 30-year terms, entity borrowers welcome.

Divide monthly rent by the full monthly payment (principal, interest, taxes, insurance, and HOA — ‘PITIA’). Rent of $2,400 against PITIA of $2,000 is a 1.20x DSCR. Most lenders want 1.0–1.25x; stronger ratios earn better pricing.

Yes — many programs underwrite Airbnb/VRBO income using 12 months of actual revenue or market data, typically applying a haircut versus long-term rents. A few lenders decline STRs entirely, so matching matters.

Conventional loans underwrite your personal income and DTI, cap how many financed properties you can own, and are consumer-purpose. DSCR loans underwrite the property, don’t count against conventional limits, close in an LLC, and scale to portfolios — at rates typically 1–2 points higher.

Yes — typically up to ~75% LTV once you have seasoning (commonly 3–6 months after purchase or rehab). Investors use DSCR cash-out to recycle equity into the next acquisition without touching personal DTI (the BRRRR strategy’s refinance leg).

Most want 3–6 months of PITIA in liquid reserves per property, more for portfolios or lower ratios. Reserves can often sit in business accounts.

Yes — DSCR lenders prefer entity borrowers. The loan is made to the LLC with a personal guaranty from members, keeping business debt off your consumer credit while preserving liability separation.

Foreign-national DSCR programs generally price 0.5–1.5% higher with LTV capped near 65–70%, require a US entity and bank account, and accept passport/ITIN documentation instead of US credit. A subset of lenders specialize here — matching is essential.

When timing beats pricing: an acquisition that must close before permanent financing can be arranged, a value-add asset that won’t qualify for bank debt until stabilized, or equity you need to unlock quickly. You pay more (SOFR-plus pricing, interest-only) for speed and flexibility, then refinance out.

Senior debt typically runs 65–75% LTV. Layering mezzanine debt or preferred equity can push total leverage to 80–85% on strong deals, at blended cost. Agency multifamily reaches the higher end for stabilized assets.

CMBS (commercial mortgage-backed securities) loans are pooled and sold to bond investors — typically $5M+ loans on stabilized assets, non-recourse, with 5–10 year terms and strong proceeds, but rigid prepayment (defeasance) and servicing. Right for hold-focused sponsors prioritizing proceeds and non-recourse.

The lender’s remedy is the property alone — your other assets aren’t exposed — except for ‘bad-boy’ carve-outs (fraud, misappropriation, bankruptcy filings). Agency, CMBS, and many debt-fund loans are non-recourse; bank loans usually aren’t.

Debt yield (NOI ÷ loan amount, commonly 8–10% minimum), DSCR at least 1.20–1.25x, LTV under 75%, plus sponsorship experience and market quality. The binding constraint is usually debt yield or DSCR at today’s rates, not LTV.

Above ~$3M, always run a process. Terms on identical deals vary dramatically across lenders, and competing term sheets routinely improve rate, proceeds, or structure enough to dwarf any fee. That’s the entire function of a capital desk.

On institutional executions the lender frequently pays the fee (0.5–1.5% depending on size); otherwise the borrower pays at closing per a written fee agreement. Either way it’s disclosed on the settlement statement — never pay large upfront fees to a broker.

Bridge and debt-fund deals: 2–4 weeks. Banks: 4–8 weeks. Agency and CMBS: 6–10 weeks including third-party reports (appraisal, environmental, engineering). Start the process before your contract’s financing contingency demands it.

SBA 7(a) is a government-guaranteed loan up to $5M with as little as 10% down and 10-year terms — the most leverage available for small business acquisitions. Banks lend it because the guarantee covers most of their risk; buyers use it because no conventional product matches the down payment.

Small businesses trade on multiples of SDE (seller’s discretionary earnings) — commonly 2–4x for main-street businesses, higher for SaaS and recurring-revenue models. Lenders then test whether post-close cash flow covers debt service at 1.25x+ after a market-rate salary for you.

Partially, sometimes: a seller note on full standby (no payments for the loan’s early years) can cover a portion of the required equity injection under current SBA rules. Structure this with an SBA-experienced lender — it materially reduces the cash you need.

The big four: declining revenue trends, customer concentration (any client over ~20% of revenue), messy or cash-heavy books, and owner dependence with no transition plan. Fixable pre-LOI; fatal mid-underwriting.

Established digital businesses with 2–3 years of clean financials can go SBA. Younger or smaller ones stack seller financing (often 20–50% on digital deals) with revenue-based facilities or asset-backed lines. Marketplace escrow plus a quality-of-earnings review protects the equity you do put in.

An individual raising a small equity pool (or using their own) to buy one business to run — typically $1M–$10M targets, financed with SBA debt plus seller notes and sometimes investor equity. Lenders increasingly have dedicated searcher programs.

It helps but isn’t decisive. Lenders accept transferable management experience plus a seller transition period. What they won’t accept is no operating plan — show who runs the business on day one.

A bank line of credit — if you qualify (2+ years of financials, profitability, often a banking relationship). Online term loans cost more but decide in 24–48 hours. Revenue-based advances are the most expensive and the most flexible. Match the money to the need’s duration.

Broad range by profile: strong-credit, established businesses see rates comparable to bank pricing plus a few points; younger or lower-credit profiles pay meaningfully more. Compare total payback and APR, not the quoted ‘factor rate’ — a 1.2 factor over 8 months is far more expensive than it sounds.

The equipment secures the loan, so rates beat unsecured working capital and terms match the asset’s life (3–7 years). New and used equipment, titled vehicles, and even soft costs like installation can be included. Approval leans on the asset and business revenue more than personal credit.

Usually yes — subordinated products like revenue-based financing or equipment loans commonly layer on top, though your SBA lender’s covenants may require consent. Never stack merchant cash advances on top of each other; that spiral kills businesses.

The fast lane needs 3–6 months of business bank statements, basic entity docs, and a soft credit pull. Larger or cheaper facilities add tax returns and financial statements. Have statements as PDFs ready and decisions come in 24–48 hours.

Reputable platforms are paid by lenders — a referral fee per funded loan or per qualified introduction — so the service is free to borrowers. InvestmentDeals.ai works this way. Be wary of anyone charging borrowers large upfront 'packaging' or 'application' fees.

Origination of 1–3 points on hard money (less on DSCR and commercial), appraisal/BPO, title and escrow, and legal on larger deals. On commercial executions, desk/broker fees of 0.75–1.5% are standard and often lender-paid. Everything should appear on the settlement statement.

Inquiring through a matching platform typically starts with soft pulls. When you proceed with lenders, hard pulls within a focused window are scored as one shopping event by credit models — days matter, months don’t.

Because appetite differs: each lender’s cost of capital, portfolio concentration, and view of your asset class changes weekly. That variance — often a full point or more — is why competing term sheets beat any single quote.

A term sheet (or LOI) outlines proposed loan terms — amount, rate, fees, covenants — and is generally non-binding except for provisions like exclusivity and expense deposits. Read the deposit and exclusivity language carefully before signing.

Foreign nationals routinely finance US investment property and businesses: DSCR foreign-national programs (65–70% LTV), commercial loans through US entities, and acquisition structures with larger equity. Expect a US LLC, a US bank account, and slightly conservative leverage — not a closed door.

Legitimate costs paid before closing are third-party items: appraisal, environmental reports, legal deposits on large deals. Red flags: large flat ‘success guarantee’ fees, fees before any term sheet, or brokers unwilling to put compensation in writing.

Hard money loan rates in 2026 run 9.5–12% interest-only for most fix and flip and bridge loans, plus 1.5–3 points at origination. Experienced investors with strong deals get the low end; first-timers and heavy-rehab projects price higher. Rates vary more by lender appetite than by market — which is why competing quotes routinely differ by a full point on identical deals.

The best DSCR lender depends on your deal profile, not a ranking. Compare four things: minimum DSCR (1.0–1.25x), max LTV (75–80%), short-term-rental income policy, and prepayment penalty structure (3-2-1 stepdowns are common). Portfolio investors should also compare blanket-loan terms. A matching platform shops these variables across lenders simultaneously instead of one application at a time.

Most commercial lenders want 660–680+ from sponsors, but the asset drives approval: debt yield (8–10% minimum), DSCR of 1.20–1.25x, and LTV under 75% matter more than personal credit. Below 660, expect bridge or private-money pricing until the property or credit seasons. Non-recourse institutional deals weigh sponsorship experience over personal scores.

Private money lenders lend their own or investors’ capital secured by real estate, underwriting the asset instead of your income. Terms in 2026: 65–75% LTV, 9–13% rates, 1–3 points, 6–24 month terms, closings in days. They fill the gap banks won’t: speed, rehab-heavy projects, credit blemishes, and unconventional assets. Always verify a private lender’s track record and use title/escrow.

SBA 7(a) rates are capped at Prime plus a spread — typically Prime + 2.25–3% for larger loans, higher for smaller ones, floating or fixed. All-in that generally lands in the 10–12.5% range in 2026. The trade-off for the rate: as little as 10% down and 10-year terms on business acquisitions, which no conventional product matches.

Rarely with zero, but close: SBA 7(a) requires 10% equity, and part can be a standby seller note — real cash injections of 5% happen on strong deals. Full no-money-down structures rely on 100% seller financing, which sellers accept mainly for hard-to-sell businesses. Expect to show liquidity and a credible operating plan regardless of structure.

Commercial bridge loans close in 2–4 weeks; residential-investor bridge and hard money can fund in 5–10 days, and repeat borrowers with clean files have closed in 72 hours. The constraints are third-party items — appraisal or BPO, title, insurance, entity docs. Having those ordered early is the single biggest accelerator.

Mezzanine debt sits between the senior loan and your equity, secured by a pledge of ownership interests rather than the property. It pushes total leverage from ~65–75% to 80–85% at blended costs typically in the mid-teens. Sponsors use it to reduce equity checks on acquisitions and recapitalizations. Senior lenders must approve via an intercreditor agreement.

Family offices typically combine low-leverage senior debt (50–65% LTV, often non-recourse) with their own equity, prioritizing discretion, speed, and structure over maximum leverage. Many also lend directly — private credit is now a core family-office allocation. For deals of $3M+, a capital desk that runs multiple lenders quietly fits how family offices prefer to transact: competing terms without broadcasting the deal.

HNW investors increasingly use asset-based routes: DSCR loans that ignore personal income, securities-backed lines of credit against portfolios (often SOFR + 1.5–3%), private bank lending, and debt funds for commercial assets. The common thread: underwrite the asset, keep personal financials private, close fast. Traditional bank underwriting is usually the slowest and most invasive option they have.

They’re usually combined, not competing: 10–30% seller note plus SBA or bank debt is the standard stack. Pure seller financing wins on speed and flexibility (no lender underwriting) but sellers rarely carry more than 50% except for hard-to-sell businesses. A seller note also keeps the seller invested in your transition — lenders view it as aligned incentives.

A DSCR cash-out refinance pulls equity from a rental using the property’s rent to qualify — no tax returns. 2026 norms: up to ~75% LTV, 3–6 months seasoning after purchase or rehab, 30-year terms. Investors use it to recycle capital into the next acquisition (the BRRRR refinance leg) without touching personal DTI or conventional loan limits.

Yes — a meaningful subset of DSCR lenders underwrite short-term rental income using 12 months of actual revenue or market-data projections, usually with a haircut versus long-term rents. Expect 70–75% LTV and pricing slightly above standard DSCR. Some lenders decline STRs entirely, so matching to STR-friendly programs matters more than rate-shopping.

A capital desk packages your deal — asset summary, financials, business plan — and runs it across matched institutional lenders, debt funds, and agency programs simultaneously, returning competing term sheets. On $5M+ deals, terms on identical packages routinely vary by 50+ basis points and 5%+ in proceeds. The desk fee (0.75–1.25%) is usually lender-paid at closing.

Post-exit buyers typically deploy proceeds three ways: DSCR and asset-based loans that qualify on the asset (keeping the windfall liquid and private), SBA 7(a) for operating-business acquisitions up to $5M with 10% down, and securities-backed lines against the invested proceeds (often SOFR + 1.5–3%) for fast, tax-efficient capital. The common goal: don’t tie up the exit check, don’t expose personal financials, keep optionality.

Debt funds close in 2–4 weeks, tolerate vacancy, transition, and complexity, and lend non-recourse — at SOFR-plus pricing typically 2–4 points above banks. Banks are cheapest but slow (4–8 weeks), documentation-heavy, and usually recourse. The practical rule: stabilized asset and no rush → bank or agency; value-add, speed, or story → debt fund, then refinance out at stabilization.

You have 45 days to identify and 180 days to close — which rules out slow lenders. Investors typically use DSCR loans (2–3 week closes), bridge debt for properties that won’t debt-service yet, or agency for stabilized multifamily if started early. Debt on the replacement property must equal or exceed the debt retired, or the shortfall is taxable boot. Line up financing before day 45.

Yes — a blanket or portfolio DSCR loan wraps 5, 10, or 100+ doors into one loan with one payment. 2026 norms: 70–75% LTV, portfolio-level DSCR of 1.20x+, individual property release provisions for selective selling, and pricing that improves with pool size. It simplifies management and frees conventional loan slots, at the cost of cross-collateralization.

Above the $5M SBA ceiling, the stack becomes conventional acquisition debt or private credit at 2.5–3.5x EBITDA senior leverage, a seller note (10–20%), and sometimes mezzanine or investor equity. Lenders want 1.25x+ fixed-charge coverage after a market-rate management salary, quality of earnings, and a real transition plan. Private credit closes in 3–6 weeks versus 60–90 days for banks.

Private real estate credit — bridge and construction lending — has recently delivered high-single to low-double-digit net yields, secured by first liens at 65–75% LTV. Investors access it via debt funds (diversified, managed) or direct/fractional loans (higher yield, concentrated risk). Key diligence: leverage in the fund, default and workout track record, and alignment of the manager’s own capital.