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.

Texas is one of the fastest, most lender-friendly hard money markets: non-judicial foreclosure with auctions on the first Tuesday of each month means a defaulted loan can foreclose in as little as 41–90 days (20-day cure notice plus 21-day sale notice). That low lender risk keeps the Texas lender pool deep and pricing competitive — typically 9.5–12% and 1.5–3 points. Loans are business-purpose to entities: expect lenders to require an LLC borrower and clear business-purpose documentation.

Florida pairs one of the country’s most active flip markets with slow lender remedies: foreclosure is judicial, typically 8–12+ months — versus roughly 45–90 days in non-judicial states like Texas. Pricing stays competitive anyway — most 2026 Florida hard money loans fund at 10–11% (full range 9.5–15%, statewide average 10.69%) with 2–3 points and 60–75% LTV, up to 70–75% of ARV. Budget hard for insurance: wind and flood premiums can break thin flip margins. Expect LLC borrowers and business-purpose documentation.

California pairs the country’s deepest hard money lender pool with a constitutional quirk: interest on real-estate loans is capped at 10% — unless the loan is made or arranged by a DRE-licensed broker or CFL licensee, which are exempt. That’s why nearly every California hard money loan runs through a licensed broker or lender. Foreclosure is non-judicial, roughly four months minimum (90-day notice of default plus 21-day sale notice). Competition keeps 2026 pricing near the national 8.5–11% and 1–3 points. Expect LLC borrowers and business-purpose documentation.

Ask for an extension before maturity — not after. Standard fix-and-flip terms run 12 months, and most lenders extend 3–6 months for about 1 point on the outstanding balance, far cheaper than default: past maturity, default interest above your note rate accrues immediately, and in non-judicial states foreclosure can reach sale within months. Request the extension 30–60 days out; some lenders require a partial paydown. Other exits: refinance into a fresh bridge or DSCR loan, or sell as-is. Budget one extension into every deal.

They fund land plus build, released in stages: private construction lenders advance 80–90% of total project cost (85% is typical for experienced builders), capped near 70% of completed value, at 10–14% — banks run prime plus 1–2%, roughly 8–11% in 2026, for 680+ credit. Interest accrues only on drawn funds. Terms run 12–24 months with 1–3 origination points; each draw releases after a $200–500 milestone inspection. Experience drives leverage. Qualify: shovel-ready permitted land and an itemized budget with contractor bids.

Arizona pairs Sun Belt flip volume with fast lender remedies: foreclosure is non-judicial on a 91-day statutory clock from the recorded notice of trustee sale — among the quickest in the country after Texas. That keeps the Phoenix-metro lender pool deep and pricing near the national 8.5–11% and 1–3 points, with up to 90% of project costs funded, roughly 70% LTV caps, and closings in 5–10 business days. Year-round construction weather shortens holds. Qualify: LLC borrower, budget from an ROC-licensed contractor, and a clear ARV-backed exit.

Georgia is one of the fastest foreclosure states in the country: non-judicial, with a 30-day notice and four weeks of published ads running to a first-Tuesday courthouse sale — a defaulted loan can go from notice to auction in roughly five to six weeks. That low lender risk keeps Atlanta’s lender pool deep and pricing competitive, near the national 8.5–11% and 1–3 points, with aggressive leverage: top Georgia programs fund up to 90% of project costs capped near 75% LTV, closing in days. Expect LLC borrowers and business-purpose documentation.

North Carolina pairs strong flip markets (Charlotte, Raleigh) with a courthouse quirk: power-of-sale foreclosure runs through a clerk of superior court hearing and a 20-day posted notice of sale — then every auction is followed by a 10-day upset-bid period that restarts with each new bid, so even completed sales stay open for weeks. It’s also an attorney-close state: a closing attorney, not escrow, runs your funding. 2026 pricing runs roughly 8–12% at up to 70–75% of ARV or 85–90% of cost, closing in 5–14 business days. Qualify: 20–30% down, LLC borrower, business-purpose documentation.

Ohio is the judicial-state counterweight to Texas: every foreclosure runs through the courts — a 28-day answer window, motion practice, then a sheriff’s sale at no less than two-thirds of appraised value — taking six months to two years start to finish. Lenders price that slow recovery in: 2026 Ohio hard money runs 9–15% and 1–4 points at 70–75% of current value, with 6–24-month terms and funding still in 7–14 days. Cheap Cleveland and Columbus entry prices keep deals penciling anyway. Qualify: LLC borrower, 25–30% down, and a clear ARV-backed exit.

Tennessee pairs deep Sun Belt flip markets with fast lender remedies: foreclosure is non-judicial with a 20-day posted notice of sale — three public postings plus, since July 2025, mandatory online posting — and typical default-to-sale timelines around five months, with no practical post-sale redemption. That keeps Nashville, Memphis, and Chattanooga lender pools deep and 2026 pricing competitive: roughly 8–11% and 1–3 points, up to 90% of project cost capped near 75% of ARV, closing in days to two weeks. A $357K median statewide price stretches rehab budgets. Qualify: LLC borrower, business-purpose documentation, ARV-backed exit.

Pennsylvania is a judicial-foreclosure state: every default runs through the Court of Common Pleas — a 30-day Act 6 cure notice before the lender can even file — with typical default-to-sheriff’s-sale timelines around 9–10 months and no post-sale redemption. Lenders price the slow recovery in: 2026 Pennsylvania hard money runs roughly 8–13% and 1–3 points (competitive lenders start near 7.25–10.9%), at up to 90% of project cost and 75% of ARV, still closing in days to two weeks. A $211K statewide median keeps Philadelphia and Pittsburgh flips cheap to enter. Qualify: LLC borrower, business-purpose documentation, ARV-backed exit.

Michigan forecloses fast but pays out slow: foreclosure by advertisement reaches sheriff’s sale in roughly 2–3 months — but a 6-month statutory redemption period follows the sale (12 months on agricultural parcels), so the borrower can reclaim the property months later. 2026 pricing runs 9–13.5% with about 2 points, funding 70–80% of purchase plus 100% of rehab, capped at 65–75% of ARV, closing in 3–14 days. In Detroit, screen for blight-ticket liens — $10,000–$25,000 surprises title searches can miss — and budget $3,000–$10,000 for rental Certificate of Compliance work. Qualify: LLC borrower, ARV-backed exit.

Illinois is the slowest-foreclosing state a flipper is likely to work in: judicial-only, running 12–24 months in backlogged Cook County, plus a 7-month statutory redemption and 2–4 months of foreclosure mediation — so lenders price the recovery risk at roughly 0.5–1.5% above non-judicial states. 2026 Chicago pricing: 9.0–13.5% and 1.5–3 points, programs up to 90% LTV (65–75% typical for newer borrowers), closings in 5–14 days. Take a 12-month term, not 6 — Chicago permits run 4–8 weeks (8–16 on complex rehabs) and extensions cost 1–1.5% of the loan. Qualify: LLC borrower, ARV-backed exit.

Indiana forecloses judicially — typically 150–270 days from filing to sheriff’s sale under IC 32-30-10 — but unlike neighboring Michigan there’s no post-sale redemption: once the sheriff’s deed issues, title is final. 2026 Indianapolis pricing runs 9.0–13.5% with 1–3 points, top programs to 90% LTV (65–75% for first-timers), closings in 5–14 days, extensions at 0.5–1.5 points per 30 days. Indiana’s circuit-breaker caps investment-property taxes at 2% of assessed value, and Indianapolis medians near $270K keep entry costs low. Qualify: LLC borrower, ARV-backed exit.

Wisconsin forecloses judicially and slowly — 12–15 months from filing to sheriff’s sale — with a redemption twist: 12 months, cut to 6 when the lender waives the deficiency judgment, so most investor foreclosures trade the deficiency for speed. 2026 Milwaukee pricing: 9.0–13.5% (from 8.99% at top lenders), 1–2.5 points, programs to 90% LTV, closings in 3–7 days at the fastest shops. Commercial loans to LLC borrowers are exempt from the state’s 12% usury cap. Milwaukee medians near $201K–$220K with 4.6% rental vacancy keep entries cheap. Qualify: LLC borrower, ARV-backed exit.

Missouri is the fastest-foreclosing state in the Midwest: non-judicial deed-of-trust foreclosure needs only a 20-day published sale notice and can complete in 45–60 days — and there’s no post-sale redemption, so the trustee’s deed transfers final title immediately. Commercial loans to investor entities are exempt from usury caps. 2026 pricing: roughly 7–11% at competitive lenders with 1–3 points, up to 90% of cost plus 100% of rehab capped near 75% of ARV, closing in 10 days to two weeks. Average Missouri home price ~$290K; budget for 8.1% rental vacancy on exits. Qualify: LLC borrower, ARV-backed exit.

Minnesota forecloses fast but pays out slow: foreclosure by advertisement reaches sale in 60–90 days, but a 6-month post-sale redemption follows (12 months on parcels over 10 acres) — and the borrower keeps possession during it. 2026 Minneapolis pricing: 9.0–13.5% with 1.5–2.5 points, up to 90% of purchase plus 100% of rehab for experienced investors, closings in 3–14 days. Business-purpose loans to entities are exempt from the 8% usury cap (MN Stat. § 334.011). Budget 4–8 extra weeks for the November–March exterior-work freeze. Qualify: LLC borrower, ARV-backed exit.

Colorado runs foreclosures through a county Public Trustee — non-judicial, reaching sale roughly 110–125 days after the Notice of Election and Demand, with cure rights up to the sale and no post-sale owner redemption (junior lienholders get short windows). Lenders price that certainty in: typically 9–13% (from ~7% at the most competitive shops), 2–3 points, up to 90–93% of cost with 100%-of-rehab programs capped near 75% of ARV, closings from 48 hours to two weeks. Denver metro’s June 2026 median is $614,000 — budget for bigger checks. Business-purpose entity loans are exempt from consumer rate caps. Qualify: LLC borrower, ARV-backed exit.

Washington hard money runs 6.9%–12.9% with roughly 2–4 points; leverage reaches 90% LTC (up to 93% top-tier) plus 100% of rehab, capped near 75% ARV, and local shops close in 48 hours to two weeks. Foreclosure is non-judicial deed-of-trust: minimum 190 days from default to trustee sale, cure rights until 11 days before, no post-sale redemption — and no deficiency after a non-judicial sale. Budget the seller-paid REET on exit: graduated 1.1%–3.0% state tiers plus 0.5% local in most Seattle-area cities. Statewide median: $452,400.

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.

The standard 2026 BRRRR stack: buy and rehab with hard money — typically 85–90% of purchase plus 100% of rehab, capped at 70–75% of ARV, at 9.5–12% interest-only — then refinance into a 30-year DSCR loan at up to ~75% LTV once seasoning is met, commonly 3–6 months. If the appraisal supports it, the DSCR cash-out repays the hard money loan and recycles most of your capital into the next deal. Qualify: 1.0–1.25x DSCR on market rent plus 3–6 months of reserves.

Yes — delayed financing recovers most of your cash within weeks instead of waiting out the standard 6-month seasoning. DSCR delayed-purchase programs lend the lesser of 75–80% of appraised value or 100% of your original purchase price, with no personal income verification and closings in as little as 15–30 days. To borrow against full appraised value — including forced appreciation — you still wait the standard seasoning period. Qualify: documented cash purchase, rented or rent-ready property, 640+ FICO (700+ for top LTV).

Yes — DSCR loans underwrite the property’s rent, not your income: no tax returns, W-2s, or employment verification. In 2026 expect 20–25% down, credit minimums around 620–660, a rent-to-payment ratio (DSCR) of 1.0x+ — some programs go to 0.75x with a larger down payment — and about six months of reserves. Most programs close in an LLC’s name, though members still sign personal guarantees and get credit-checked. Qualify: 20–25% down, 620+ FICO, market rent that covers the payment.

Rarely on 1–4 unit rentals: standard DSCR loans are full recourse — even closing in an LLC, the members sign personal guarantees. Two real exceptions. Self-directed IRA or solo 401(k) purchases must be non-recourse (federal rules prohibit you guaranteeing your own retirement account’s loan) — expect 35%+ down. And larger multifamily/commercial deals can get non-recourse with “bad-boy” carve-outs: fraud, misapplied rents, or unauthorized transfers still create personal liability. If liability shielding matters, weigh the lower leverage against the protection.

Insurance is the underwriting story. Wind and flood premiums — often an extra $500–$1,500 a month within a mile of the coast — flow into PITIA and can drag DSCR below 1.0 on a deal that pencils anywhere else, so get a real insurance quote before you write the offer. Otherwise 2026 terms are standard: 80% max LTV at 660+ credit (640 floor at 75%), 3–6 months reserves, short-term rentals capped near 70–75% LTV. Condos add 5–7 business days for project review plus post-Surfside reserve assessments.

Yes — foreign-national DSCR programs underwrite the property’s rent, not the borrower: no US credit history, W-2s, or tax returns required. Canadians typically put 25% down and pay roughly 25–50 bps above US-citizen DSCR rates, with approvals in about 30 days and remote closings available. Expect to close in a US LLC with a US bank account, plus documented source of funds under anti-money-laundering rules. Qualify: 25–30% down, market rent covering the payment, and verifiable funds for down payment and reserves.

Yes — foreign-national DSCR loans qualify the property’s rent, not your credit: no US score, Social Security number, or ITIN required (an ITIN matters only later, for filing on rental income). Expect 20–30% down at 70–80% LTV, a 1.0x minimum rent-to-payment ratio (0.75x with compensating factors), and 21–45-day closings — fully remote via online notarization or power of attorney. Some full-documentation programs also accept UK credit reports in place of a FICO score. Qualify: 25%+ down, market rent covering the payment, documented source of funds.

Property taxes are the underwriting story: Texas effective rates run 1.7–2.5% — among the country’s highest (Tarrant 2.1–2.5%, Harris 2.0–2.3%) — and flow straight into PITIA, swinging DSCR by roughly 0.10 between counties on identical properties. Pad tax assumptions 10–15% above the prior owner’s bill; Texas reassesses after sale. Otherwise 2026 terms are aggressive: up to 85% LTV for top-tier borrowers, 640–680 credit floors, short-term rentals at 75–80% LTV, cash-out near 70%, and 30-year fixed rates around 6.25–6.75% at 75% LTV.

Yes, but the lender pool is thin — most banks decline them. 2026 investment-property HELOCs cap at 70–75% combined LTV (versus 80–90% on a primary residence), want 720+ credit (700 with compensating factors), full personal income documentation, and about six months of PITIA reserves covering both mortgages. Pricing is variable and higher than primary-residence lines. If you’d rather not document income, the standard alternative is a DSCR cash-out refinance underwritten on the property’s rent. Qualify: 25–30% equity retained, 700+ FICO, documented income.

Yes — foreign-national DSCR loans qualify on the property’s rent: no US credit history, FICO score, or Social Security number. GCC investors typically put 20% down (80% max LTV) at 30-year fixed rates from roughly 7–7.25% in 2026; sub-1.0x DSCR programs require 35%+ equity. Reserves held at Emirates NBD, FAB, Al Rajhi, and other GCC banks are accepted. Most deals close in a US LLC — important, since US estate tax reaches nonresident-held assets above $60,000. Qualify: 20–35% down, market rent covering the payment, documented source of funds.

Yes — 5–8 unit buildings sit in a dedicated DSCR crossover niche between residential and agency commercial. 2026 terms: up to 85% LTV on purchase, 1.0x minimum DSCR (1.25x+ earns better pricing), 620 credit floor, and reserves from zero (under $1.5M at ≤70% LTV) to 9 months. Underwriting turns commercial: a narrative appraisal by a certified general appraiser, trailing rent roll, and operating-expense history replace the simple lease-versus-payment check. Pricing runs above comparable 1–4 unit DSCR loans. Qualify: stabilized rents covering the payment, 620+ FICO, 15%+ down.

Property taxes are the tailwind: Arizona’s effective rate is about 0.63% statewide (Maricopa 0.55–0.70%) — a fraction of Texas’s 1.7–2.5% — so the same rent produces a stronger DSCR. State law also preempts local short-term-rental bans (A.R.S. § 9-500.39) and rent control. July 2026 terms: 30-year fixed roughly 6.25–7.875%, 75–80% max LTV on purchase and 70–75% on cash-out, 620–680 credit floors, STR income underwritten from 12 months of AirDNA or platform statements. Budget $3,000–$5,000 a year for HVAC reserves in Phoenix heat. Qualify: 20–25% down, market rent covering the payment.

Georgia is a tailwind state for DSCR underwriting: effective property tax averages 0.83% statewide (Fulton ≈0.88%, Cobb ≈0.67–0.69%) — below the 1.02% national average and a fraction of Texas — so more of the rent survives into your coverage ratio. 2026 Atlanta terms are aggressive: up to 85% LTV on purchase and 80% on cash-out, 0.75-minimum-DSCR programs, 640 credit floors, top-tier 30-year fixed near 6.0%, and 14–21-day closings. One check before you offer: Atlanta short-term-rental rules vary by neighborhood — verify zoning first. Qualify: 15–25% down, market rent covering the payment.

Usually not — most DSCR lenders close to an LLC and don’t furnish the trade line to consumer bureaus, which is why portfolio builders favor them: ten DSCR loans can leave a personal file showing nothing but inquiries. But no rule prevents reporting — it’s lender discretion, so ask before you apply. Expect a hard pull on the guarantor (typically under 5 FICO points), and know that an enforced personal guarantee after default does land on your personal report. Bonus: non-reported LLC loans generally stay out of your DTI on future personal mortgages, unlike agency investor loans in your own name.

North Carolina is a property-tax tailwind: the average effective rate is 0.62% — well below the ~1% national average — and counties revalue only every four to eight years, usually at revenue-neutral rates, so more rent survives into your coverage ratio. 2026 terms: up to 85% LTV on purchase (75–80% cash-out), 0.75-minimum-DSCR programs, 620 credit floors, top-tier 30-year pricing near 5.75%, and 21–30-day closings — run by a closing attorney, since NC is an attorney-close state. Asheville short-term rentals underwrite on AirDNA projections with no operating history. Qualify: 15–25% down, market rent covering the payment.

Taxes are the tailwind twice over: Tennessee has no state income tax, and effective property tax averages just 0.45% — about half the national average (Davidson ≈0.57%, Shelby ≈0.89%) — so more rent survives into your coverage ratio. 2026 terms: up to 85% LTV on purchase (75–80% cash-out), 0.75-minimum-DSCR programs, 620 credit floors, top-tier 30-year pricing near 5.75%. Nashville, Gatlinburg, and Pigeon Forge short-term rentals underwrite on AirDNA projections — verify permit caps and HOA rules first. Budget $1,500–$3,000 a year for tornado/hail insurance, and note LLCs owe Tennessee franchise & excise tax. Qualify: 15–25% down, market rent covering the payment.

Cheap entry, expensive taxes. Ohio’s effective property tax averages 1.31% — well above the 0.92% national average — and Cuyahoga County (Cleveland) tops the state at 2.00% (Franklin/Columbus 1.47%), so county choice can make or break coverage on identical rents. Entry prices offset it: Cleveland and Dayton near $180K, Columbus around $290K. 2026 terms: up to 85% LTV on purchase (75–80% cash-out), 0.75-minimum-DSCR programs, 620 credit floors, top-tier 30-year pricing near 5.75%, STRs underwritten on AirDNA projections. Budget for deferred maintenance and pre-1978 lead disclosures in older stock. Qualify: 15–25% down, market rent covering the payment.

Watch the tax “uncapping”: Michigan resets a property’s taxable value when it sells, so year-one property taxes typically jump 20–40% over the seller’s bill — underwrite your coverage on the post-sale number, not the listing’s. 2026 terms: 75–80% LTV on purchase (70–75% cash-out), DSCR minimums from 0.75 (some programs waive entirely), rates advertised from 5.75% with recent Michigan fundings at 6.875–9.375%, and six months of reserves — nine in Detroit, where lender overlays cap some ZIP codes at 65–70% LTV with $75K–$100K minimum values. Entry: Detroit $95K–$180K renting $1,100–$1,600; Grand Rapids $225K–$375K. Qualify: 20–25% down, rent covering the post-uncapping payment.

Property tax decides the deal: Illinois runs a 2.01% effective rate — #2 in the nation, 118% above the 0.92% average — and investor counties skew worse (Will 2.24%, Winnebago/Rockford 2.39%, Lake 2.58%), so the tax line often breaks coverage before rent does. 2026 terms: 1.2 minimum DSCR standard (1.0 by exception with 740 credit or 30% down), 680 floors, 20–25% down, six months of reserves, rates from about 6.25% — typically priced ~0.125% above national for Cook County’s 60–120-day evictions and Chicago’s Just Cause ordinance. Chicago medians near $325K gross 6.5–10%; Rockford at $165K grosses 9–11%. Qualify: rent covering the fully tax-loaded payment at 1.2x.

Indiana pairs cheap entry with a landlord-friendly tax cap: rentals run about 1.50% effective, held under the state’s 2% circuit-breaker ceiling. 2026 terms: 0.75-minimum-DSCR programs, 620 credit floors (capped at 65–70% LTV there), 15% down at 740+ credit — 20–25% standard — loans to $4.5M, ~34-day average closings. Entry: Indianapolis ~$300K renting ~$1,955, Fort Wayne ~$260K at ~$1,500, Evansville ~$227K at ~$1,160 — coverage runs thin at market rents (0.75–0.95 in lender examples), so the low-DSCR programs matter. Indianapolis STRs need a city license. Qualify: 20–25% down, reserves to offset sub-1.0 coverage.

Wisconsin is landlord-stable but tax-heavy: state law prohibits local rent control and evictions run a 5-day notice plus 3–6 weeks to judgment — but property tax averages 1.32% and rental income faces 3.54–7.65% state income tax. 2026 terms: 0.75-minimum-DSCR programs (no-ratio available), 620 floors capped at 65–70% LTV, 15% down at 740+ credit, loans to $4.5M, ~34-day average closings. Entry: Milwaukee ~$406K renting $1,848 (5.5% gross), Madison $474K at $2,701 (6.8%), Green Bay $349K at $1,601. STRs work in the Dells and Door County; Madison requires owner-occupancy. Qualify: 20–25% down, rent covering the tax-loaded payment.

Missouri is landlord-stable with cheap entry: property tax averages 0.89%, state law preempts local rent control (§ 441.043 RSMo), and evictions start with a 10-day notice. 2026 terms: 0.75-minimum-DSCR programs (no-ratio available), 620 credit floors capped at 65–70% LTV, 15% down at 740+ credit, loans to $4.5M, ~34-day average closings. Entry: Kansas City ~$333K renting $1,830 (6.6% gross), St. Louis ~$283K at $1,665 (7.1%) — lender examples run 0.87–0.93 coverage at 20% down, so the low-DSCR programs matter. Standard 5-4-3-2-1 prepay. Qualify: 20–25% down, reserves to offset sub-1.0 coverage.

Terms are standard — 0.75-minimum-DSCR programs (no-ratio available), 620 credit floors capped at 65–70% LTV, 15% down at 740+ credit, loans to $4.5M, ~34-day average closings — but the metro spread is the story. June 2026: Minneapolis–St. Paul averages $408,449 with $2,466 rents (7.2% gross, ~0.94 coverage); Duluth cash-flows best at 8.2% and ~1.06. Mind the twin-city split: St. Paul caps most rent increases at 3%, Minneapolis has no cap but adds a 30-day pre-eviction notice on top of the statewide 14-day notice. Non-homestead property tax runs ~1.05%; state income tax on rents reaches 9.85%. Qualify: 20–25% down, rent covering the tax-loaded payment.

Colorado DSCR terms are standard — 0.75 minimum ratios (1.0+ for best pricing), 620 credit floors, up to 85% LTV on purchases, loans to $15M; April 2026 rates ran 5.75%–8.5% by credit and leverage tier. The math: Denver’s ~$580K median rents near $2,400 (~1.00 DSCR at 75% LTV); Colorado Springs ~$470K/$2,200 (~1.10); Pueblo ~$320K/$1,750 (~1.20). A ~0.5% property tax and 4.4% flat income tax help cash flow. Watch items: hail-belt insurance ($2,000–$4,000/year on single-family rentals) and HB24-1098 for-cause eviction rules.

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.

You have more leverage than you think: nearly $936 billion in US CRE loans mature in 2026, and lenders would rather extend than foreclose. The realistic menu: a lender extension or modification (often 25–50 bps per 6-month extension), a bridge loan to buy time, preferred equity to fill the refi gap (typically 8–15% preferred return), a partial paydown to rebalance the loan, or a sale. Start 12–24 months before maturity. Qualify for an extension: current on payments, updated rent roll, and a credible exit plan.

Agency loans are the benchmark for stabilized 5+ unit properties: non-recourse with standard carve-outs, up to 80% LTV, minimum DSCR around 1.20x (1.15x for affordable housing), and 5–30-year fixed terms with amortization up to 30 years. July 2026 fixed pricing starts around 5.7% on 5–10-year terms for larger loans. Fannie’s DUS program starts near $750K, but agency execution shines at $3M+. Qualify: stabilized occupancy, experienced sponsorship, and rent covering debt service by 20%+.

Preferred equity fills the gap between the senior loan and your cash — most often when a refinance comes up short or the lender caps leverage. 2026 institutional pricing on $10M–$50M deals: 6–9% current pay plus 2–4% accrued, 8–12% all-in, sometimes with 10–20% of the upside above a hurdle. Agency lenders generally prohibit mezzanine debt but allow preferred equity, which is why it dominates multifamily recapitalizations. Qualify: stabilized or near-stabilized asset, experienced sponsor, and a credible exit or refinance plan.

Expect a 14–18% coupon and 18–25%+ total return — the top of the 2026 pref-equity grid (stabilized deals price at 8–10% coupons, 12–14% all-in). Structure is hard-pay with tight governance: cash sweep on the first missed distribution, 6–12-month cure windows, then sponsor-removal and forced-sale rights; mandatory redemption compresses to 2–3 years, set ahead of the new senior maturity. Rescue pref typically fills 15–25% of the stack. With well over $1.5 trillion of CRE debt maturing in 2026, it’s expensive — but cheaper than losing the asset. Qualifier: a credible paydown-and-exit plan.

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.

Yes — partner buyouts are an eligible 7(a) use. Under SOP 50 10 8, a complete change of ownership requires a 10% equity injection, but a partial partner buyout can need less — even zero new cash — if the business’s debt-to-worth ratio is 9:1 or better before the sale. Otherwise, owners contribute the lesser of cash to reach 9:1 or 10% of the purchase price. Use an SBA-experienced lender; the remaining owner must be active in the business.

A 504 finances owner-occupied commercial real estate — your business must occupy at least 51% — in three pieces: a bank first mortgage around 50%, a CDC/SBA debenture around 40%, and 10% down (15% for a startup or special-purpose building, 20% if both). The CDC piece is fixed for up to 25 years; the July 2026 25-year effective rate is about 6.17%. It’s usually the cheapest way to buy your building. Pure investment property doesn’t qualify — that’s DSCR or conventional commercial territory.

Plan on 60–90 days from application to funding. The clock: lender underwriting 2–10 weeks, SBA review 5–21 business days, closing prep 1–3 weeks. Cut it dramatically with a Preferred Lender (PLP) — they approve in-house, skip the SBA review stage, and often close in 20–45 days; SBA Express runs 15–30 days but caps at $500,000. Documentation gaps cause over 40% of delays, so a complete package beats a fast lender. Qualify for speed: full financials ready day one and 24–48-hour turnaround on lender conditions.

Yes — e-commerce, Amazon FBA, SaaS, and content businesses are all 7(a)-eligible; the real hurdle is finding a lender comfortable when the assets are digital rather than hard collateral. The numbers match any acquisition: 10% equity injection (a full-standby seller note can cover half), 1.15x debt-service coverage on the business’s cash flow, typical 650–680 lender credit floors, prime plus up to 2.75%, 10-year terms, $5M cap. Earnouts are prohibited — escrowed “buyer rebates” tied to performance are the compliant workaround. Qualify: three years of clean financials and transferable operations.

Above $1M, treat it as mandatory — most SBA lenders expect one from roughly $1M–$2M up. A QoE tests whether the seller’s EBITDA is real: add-back validation, proof-of-cash against bank deposits, customer concentration, and a working-capital peg. 2026 pricing runs $5,000–$15,000 on sub-$1M deals and $15,000–$50,000 at $1M–$5M, delivered in about 4–8 weeks — commission it within five business days of signing the LOI. It usually pays for itself: QoE findings trigger repricing in 60–80% of deals, typically 5–15% — and material findings can cut true EBITDA 15–30%.

Yes — if the brand is listed. The SBA Franchise Directory came back on August 1, 2025, and listing is mandatory again: if your franchisor isn’t on it, 7(a) and 504 financing is off the table until the brand clears SBA review of its FDD and franchise agreement (30–90 days). The loan itself works like any acquisition: 10% equity injection on total project cost — franchise fee, buildout, equipment, working capital — pricing at prime plus up to 2.75%, 10-year terms (up to 25 with real estate), $5M cap. Check the directory before signing anything. Qualify: verifiable cash injection and a listed brand.

Yes — financing strongly favors the resale. An existing unit with three years of tax returns and P&Ls gets underwritten on actual cash flow: lenders typically ask 10–15% down with faster approvals and better pricing. A new unit is underwritten on projections and brand system data — usually 20–30% down — and takes 12–18 months to reach break-even, with first-year revenue at 40–60% of a mature store. The trade-off is price: profitable resales carry 50–150% premiums over original buildout ($300K builds reselling at $450K–$700K). Either way, the brand must be on the SBA Franchise Directory. Qualify: listed brand, 10%+ injection, a price tested against verified financials.

Yes — SBA 7(a) is the self-funded searcher’s standard stack on $1M–$5M acquisitions: roughly 90% SBA debt, a 5% seller note on full standby for the life of the loan, and 5% searcher cash, at prime plus up to 2.75% on 10-year terms with 1.15–1.25x debt-service coverage. The structural catch is investors: anyone owning 20%+ must personally guarantee the loan, and capital carrying redemption or equity-recovery rights counts as debt, not equity injection — so outside backers stay under 20% with no guaranteed-payback agreements. Qualify: 5%+ unborrowed cash and cash flow covering debt service.

Pari passu stacks a maxed-out $5M SBA 7(a) (around prime + 2.75%) side-by-side with a conventional loan (around prime + 3.5%) sharing equal lien priority — neither lender is senior. The sweet spot is $6M–$10M acquisitions, workable to about $12M, with 10–15% buyer equity: a $7M deal splits $5M SBA + $1.3M conventional + $700K down, blending near 11–12% versus 12–14% all-conventional. The bar exceeds standard 7(a): 1.25–1.35x DSCR, 700+ credit, 6+ months post-close liquidity, and 90–120 day closings — single-bank structures move fastest. Qualify: cash flow covering the blended debt stack at 1.25x+.

Yes — but under SOP 50 10 8 (effective June 1, 2025) it costs them: a seller retaining even 1% must personally guarantee the full 7(a) loan for at least two years after final disbursement, which has effectively killed the casual 10% “ride-along” rollover. Partial buyouts must also be structured as stock or membership-interest purchases — asset deals no longer qualify — and multi-step NewCo workarounds are expressly prohibited. If the seller won’t guarantee, structure a full exit with a consulting agreement, or a standby seller note, which can still fund up to half of your 10% injection. Qualify: seller willing to guarantee, or a clean 100% exit.

Yes — if the target owns its real estate, a sale-leaseback monetizes 100% of the property’s value at close versus the 60–75% a mortgage advances, and the arbitrage does the work: businesses trade on EBITDA multiples while real estate prices off rent at Q1 2026 cap rates of 6.80% for single-tenant net lease (6.55% retail, 7.15% industrial). The cost is a 10–15-year NNN lease with 1.5–2.5% annual escalations that post-close cash flow must carry — and lenders underwrite the rent-burdened EBITDA, not the old one. Q4 2025 volume: $4.7B, up 56% quarter-over-quarter. Qualify: target-owned real estate, rent-adjusted EBITDA still covering deal debt.

Yes — with three tripwires under SOP 50 10 8. Anyone holding 20%+ at closing must personally guarantee the loan in full, so keep employee grants below 20%. Equity carrying guaranteed repayment or priority distributions gets reclassified as debt — and side agreements giving non-guarantor owners control can disqualify the whole transaction. A seller who stays on as an employee and keeps any stake still signs a guarantee covering the full loan for at least two years, and every owner must be a US citizen or permanent resident. Qualify: employee stakes under 20%, plain common equity, no guaranteed payouts.

No — SBA rules require the full purchase price fixed at closing, so earnouts are prohibited in 7(a) deals. The compliant substitute is a forgivable seller note: the seller carries paper (say $200K on a $2M price) on full standby, forgiven if defined conditions fail — measurable triggers like a 3–6-month transition, 12-month key-employee retention, or named-customer retention. Escrow holdbacks of 6–12 months and 3–12-month consulting agreements cover the rest. Vague “if the business performs” triggers won’t pass underwriting: conditions must be objective and fully disclosed to the lender.

No — SOP 50 10 8’s single-closing rule requires all ownership being purchased to transfer at one closing, so phased buyouts are ineligible. The fix is one full closing: SBA allows financing over 90% of a partner buyout when the remaining owner has been active in the business 24+ months, keeps the same or higher stake, and the business shows 9:1 or better debt-to-worth on both the latest fiscal-year and current-quarter balance sheets. Partial purchases must be stock or membership-interest deals — and a seller keeping any equity personally guarantees the full loan for at least two years. True staged exits need seller or conventional financing instead.

Yes — serial acquirers can hold several 7(a) loans, but $5 million is the aggregate outstanding cap across all of them, affiliates included (SBA guaranty exposure caps at $3.75M). The 2026 change: Policy Notice 5000-879058, effective July 4, 2026, decoupled 504 from 7(a) — total SBA capacity is now $10M. Route real-estate- and equipment-heavy add-ons to 504 and goodwill-heavy targets to 7(a); if 75%+ of an older 7(a) funded long-term assets, refinancing it into a 504 restores 7(a) room. Each add-on still underwrites standalone: DSCR, experience, full guaranties.

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.

Expect 1–2 origination points ($20,000–$40,000) for experienced sponsors on a $2M commercial bridge loan in 2026 — institutional sponsors see 0.75–1%, first-timers up to 3. Add third-party costs (appraisal, legal, title) of roughly $15,000–$30,000, extension fees of 25–50 bps per 6-month extension if you run long, and check the term sheet for exit fees. At 10% interest-only, an 18-month hold adds ~$300,000 in interest — the number that matters most is still the rate.

Usually the borrower, at closing, out of loan proceeds. Typical commercial mortgage broker fees run 0.5–2% of the loan amount — about 1% is standard on $2M–$15M deals, 1.5–2% under $1M, and 0.5–1% above $15M. Some lenders pay the broker from their own origination revenue instead, and some deals split it. Most brokers work on success fees due only at funding; a $1,000–$5,000 engagement retainer shows up mainly on small or complex deals. Get the fee in writing before sharing financials.

A term sheet is generally non-binding — the enforceable commitment comes after underwriting — but deposit and exclusivity clauses usually do bind you. Check five things: prepayment structure (defeasance vs step-down), recourse carve-out language (get the “bad-boy” triggers spelled out now, not at loan docs), escrow and reserve requirements, the origination fee (typically 0.5–1%), and exactly when your good-faith deposit is refundable. Spelling out recourse carve-outs up front is the single most-skipped step — and the most expensive omission.

Usually not — most banks and CMBS lenders float the rate until commitment or closing: a term-sheet rate is an estimate, not a lock, and conduit lenders can re-price spreads if credit markets move. The exception is agency multifamily: Fannie Mae’s Streamlined Rate Lock can lock up to 180 days ahead with a good-faith deposit — 2% of the loan for locks to 90 days, 3% for 91–180 — and any breakage fee capped at that deposit. Ask every lender in writing when the rate locks and what can move it before then.

More than the lender commits to you. The rates in a term sheet aren’t binding — but the exclusivity clause usually is: signing typically locks you out of negotiating with other lenders for 30–60 days while the lender stays free to re-trade pricing after underwriting. Before signing: cap exclusivity at the short end with a hard expiration date, tie it to lender milestones like ordering the appraisal, get deposit refundability in writing if material terms change, and ask whether expense reimbursement or a break-up fee survives a dead deal. Collect competing term sheets first — exclusivity ends that leverage.

Budget $2,000–$5,000 for a small retail or office building, $3,000–$8,000 for mid-size multifamily (20–100 units), and $6,000–$15,000+ for large commercial or industrial — complex or litigation assignments run $10,000–$25,000+. Unlike a $400–$500 residential form report, you’re buying a 40–100 page narrative appraisal, and delivery typically takes 2–4 weeks — order it the day the term sheet is signed, because the appraisal is the long pole in most commercial closing timelines. The borrower pays, usually as an upfront lender deposit collected with the application.

Budget 2–5% of purchase price for buyer-side closing costs, before loan points. The 2026 line items: title insurance 0.5–1% of price (lender and owner policies combined), lender’s legal counsel from a few thousand dollars on small local-bank deals to $15,000+ on larger ones — you pay both sides’ lawyers, with your own closing attorney running $1,500–$5,000 more — an ALTA survey at $8,000–$15,000, Phase I environmental at $2,000–$4,000 (a Phase II finding adds $6,000–$25,000+), and transfer taxes from zero past 5% depending on state. Most fees are owed whether or not you close — get the lender’s full fee schedule in writing before ordering reports.

Depends on the penalty structure in your note. Bank loans typically use a step-down — 5-4-3-2-1% of the balance by year, so paying off $2M in year two costs about $80,000. Agency and CMBS loans use yield maintenance or defeasance, which charge the present value of the interest the lender loses: on a $50M loan with three years left after rates fell three points, roughly $4.0M (yield maintenance) to $4.6M (defeasance) — 8–9% of the balance. Yield maintenance usually carries a 1% floor. Every structure ends with an open window — commonly the final 90 days penalty-free — so time your exit to it, and negotiate the structure before closing, not after.

It prepays the lender’s diligence: the appraisal ($2,000–$5,000+ on typical commercial buildings), Phase I environmental ($2,000–$4,000), processing and underwriting ($500–$2,500), and lender legal. Deposits are sized accordingly — flat $25,000–$125,000 on larger facilities, or around 2% of the loan on some structures. Three outcomes: close, and it’s credited against closing costs or the commitment fee; walk away, and most agreements let the lender keep it; get declined, and the standard clause refunds the balance minus documented expenses. Get all three outcomes spelled out in the term sheet before wiring.

You pay the lender’s lawyer, even though the lender picks the firm. Budget by lender type: simple bank deals start near $2,000, while CMBS is the ceiling — $15,000+ even on loans under $5 million, and $30,000–$100,000 on larger facilities — climbing fast when the deal adds mezzanine debt, multiple tranches, or complicated guaranty structures. Local banks and credit unions charge considerably less than conduits for the same loan size. Two protections: negotiate a written legal-fee cap in the term sheet before you sign exclusivity, and confirm what portion of your good-faith deposit it draws from. Qualify: fee cap agreed before exclusivity.

For loans maturing beyond 12 months (effective October 1, 2025): 2% of the guaranteed portion at $150,000 or less, 3% from $150,001–$700,000, and above that 3.5% of the first $1M guaranteed plus 3.75% beyond — a maxed $5M loan with a 75% guaranty ($3.75M) costs $138,125 upfront. Short-maturity loans pay just 0.25%; lenders also owe a 0.55% annual service fee that’s typically built into your rate. Fee-free: manufacturers (NAICS 31–33) borrowing $950,000 or less and veteran-owned SBA Express loans. Qualify: the fee is due at closing but can be financed into the loan.

Yes — Form 159 is mandatory whenever anyone is paid to help with your 7(a) or 504 application: packagers, brokers, consultants, and referral agents count, whether you or the lender paid them. Fees over $2,500 must be itemized — services performed, hours, hourly rate — and fees may only cover work actually done, never anticipated services. No agent can be paid by both you and the lender for the same work. Exempt: attorneys closing the loan, accountants doing ordinary financials, realtors on sales commissions. Never sign a blank 159. Qualify: every agent fee disclosed and itemized before closing.

Two policies, both usually paid by the buyer: the lender’s policy (required by every commercial lender) at $1,500–$3,500 on typical mid-size deals, and the owner’s policy at $2,500–$6,000 — plus a title search and exam at $1,000–$2,500 and endorsements (zoning, survey, access, environmental) at $200–$1,000 each. All title-related line items on a $1.5M 2026 purchase commonly total $7,000–$25,000, consistent with the 0.5–1% of price rule of thumb. Premiums are shoppable in most states and who pays varies by local custom — fix it in the purchase agreement. Qualify: quotes from two title companies before closing.

Budget 0.1–1% of purchase price in most states — but check your market: Texas and Arizona charge zero transfer tax, while Delaware runs 2.5% ($25,000 on a $1M deal), Washington scales 1.1–3% above $3M, and Pennsylvania reaches ~2% with local add-ons. City surcharges stack on top: San Francisco up to 2.25%, Chicago ~1.05%, Miami-Dade 1.05% versus Florida’s 0.7% standard. Sellers customarily pay in most states, but commercial contracts negotiate it — and recording fees add a few hundred dollars more. Price the line before you underwrite: it measurably moves cash-on-cash returns.

Budget $12,000–$25,000 in third-party reports and closing items, plus the SBA guaranty fee — the largest single cost at roughly $20,000–$120,000 depending on loan size (FY2026 tiers: 2–3.75% of the guaranteed portion). Typical line items: business valuation $3,000–$7,000, real estate appraisal $3,000–$5,000+, equipment appraisal $1,500–$3,500, Phase I environmental $2,000–$3,000, lender legal $2,000–$7,500, title/escrow/recording $2,000–$5,000. A quality of earnings report adds $10,000–$30,000 if you commission one. Most of these can be financed into the loan — confirm your lender’s policy upfront.

Depends on the state — most charge only flat recording fees ($50–$250) on a refinance. New York re-triggers its mortgage recording tax (in NYC: 1.8%–1.925% residential, 2.55% commercial) unless you close a CEMA assigning the old mortgage, which limits tax to new money. Florida charges $0.35 per $100 doc stamps plus a 2-mill intangible tax, but after Bank of America v. DOR (Nov 2025), a same-lender renewal is taxed only on principal above the old unpaid balance — switch lenders and the full tax reloads. Price this before rate-shopping.

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.

Yes — SBLOCs and pledged asset lines are non-purpose loans, so proceeds can fund property purchases. 2026 pricing on $1M+ draws runs SOFR + 0.5–2.25% (roughly 5–6.75% all-in) with advance rates of 65–70% against diversified equity portfolios. You close like a cash buyer with no property underwriting — but a market drop can trigger collateral calls, some with cure windows of days. Most investors use it as a bridge, then refinance into a DSCR or commercial loan.

Yes, two ways — neither requires selling and triggering capital gains. Crypto-collateral mortgages (Milo, Figure) pledge coins for up to 100% financing, with margin calls if collateral falls near ~150% of the loan. Or raise cash with a crypto-backed loan — roughly 9.25–11.5% APR at 50% LTV on bitcoin in mid-2026 — close like a cash buyer, then refinance into a DSCR loan. Some lenders instead count pledged crypto as qualifying assets at standard 6.5–7.25% rates with 20–25% down. Qualify: substantial BTC/ETH holdings and tolerance for liquidation risk.

Five questions before wiring: Where does the fund sit — first-lien senior debt (usually 55–70% of a deal’s capital stack) or mezzanine (10–15% all-in returns, higher loss severity)? Does the fund lever its own book, and how much? What share of loans is non-performing, and how are they marked? What are the lock-up and redemption terms? Who runs workouts — mezzanine lenders can force a UCC sale in 30–90 days, which cuts both ways. Qualify the manager: four quarters of letters, audited financials, third-party fund administration.

Lenders convert your portfolio into qualifying income — no employment, W-2s, or tax returns. The formula: eligible assets minus down payment, closing costs, and reserves, divided by a depletion period. Aggressive 2026 programs divide by 60 months (about $1,667 of monthly income per $100K); conservative ones use 360. Haircuts apply — 100% of cash counts, roughly 70% of stocks and bonds, 60–80% of retirement accounts depending on age. Expect 700+ FICO, up to 75% LTV on investment property, jumbo programs to $5M. Qualify: verified liquid assets plus 6–12 months of reserves post-close.

Yes — cross-collateralization pledges existing equity as your down payment, letting you buy with little or no new cash. Lenders pool the properties and lend against combined value, commonly around 70% LTV: two debt-free $500K rentals can support roughly $700K of total credit. Two contract points matter: a partial-release clause (typically repaying about 120% of the released property’s allocated loan share to sell one asset), and the fact that a default now endangers every pledged property. Stress-test the pool against a 10–15% value drop. Qualify: 30%+ combined equity and rents covering the blended payment.

Position decides your downside. First-lien senior debt occupies the bottom 60–65% of a stabilized deal’s value, holds direct mortgage-foreclosure rights, and earns roughly 6.75–9% in mid-2026. Mezzanine sits above it to about 75–80% combined leverage, is secured by a pledge of the property-owning entity’s equity — not the real estate itself — and prices at 11–16% all-in. Mezz takes the first loss of the two, its remedy is a UCC pledge foreclosure (typically 30–90 days), and an intercreditor agreement with the senior lender bounds everything it can do. Match the layer to your loss tolerance, not the headline yield.

Yes — that’s the core financing appeal of a Delaware Statutory Trust. Full tax deferral requires your replacement property to carry debt equal to or greater than what you sold; DST offerings arrive with non-recourse financing already in place — most commonly 40–65% LTV — so you inherit matching leverage with no loan application, no personal guarantee, and no financing-denial risk inside the 45/180-day deadlines. Sold with a $600,000 mortgage? Choose a DST whose allocated leverage covers it. Treat anything above 65% LTV as aggressive and scrutinize the sponsor. Qualify: accredited-investor status and 1031 exchange proceeds.

Match the lender to the constraint. Private banks are the cheapest capital — 2026 jumbo pricing runs about 6–7%, with relationship discounts of 0.125–0.50% for clients who move assets over (the deepest tiers reserved for $10M+ relationships) and loan sizes to roughly $10M — but expect full financial disclosure, personal recourse, and 60–120-day timelines. Private credit sells speed and privacy instead: senior bridge debt at 9–14%, covenant-lite terms, non-recourse options, and closings in 2–6 weeks with no requirement to move your portfolio. A common $5M+ play: win the deal with private credit, then refinance into relationship pricing.

Yes — art-backed credit turns a collection into deal capital without selling or triggering capital gains. Lenders advance 40–70% of appraised value (50–60% is standard; blue-chip works reach 70%) at roughly 3–12% depending on the lender: private banks are cheapest but want $5M–$10M minimums and an existing relationship; auction-house lenders write $1M to $250M+ with no credit checks or income disclosure and close in about six weeks; specialty lenders start near $50K. The art usually stays on your wall, and collectible cars, jewelry, watches, and wine qualify too. Qualify: appraised, provenance-clean works plus mandatory insurance at 0.5–1.5% of value annually.

A club deal is deal-by-deal capital: several family offices co-invest in one named asset instead of committing to a blind fund. It’s now the dominant format — roughly 60% of family-office real estate investments by volume, with 70% of family offices writing at least one direct check a year and 83% of those structured as co-investments. Checks run $2M–$25M+, usually without the 2-and-20 fund load, in exchange for asset-level control: approval rights over refinancing and exit timing. Sponsors qualify with 3–5 completed projects showing documented, realized returns — plus meaningful co-investment of their own money.

Co-GP capital funds the sponsor’s own check: specialist investors and family offices fund up to 80–90% of a GP commitment — typically the 5–10% of total equity a sponsor must post — writing $1M–$10M checks so you can sign a larger deal without diluting at the LP level. The price is a slice of your economics: expect to give up roughly 25–50% of the GP position, promote included, with terms set case-by-case and closings in 45–60 days. Blended GP-side returns can reach 3–8x MOIC versus the 2–3x of typical LP value-add. Qualify: completed projects in the target market plus real cash of your own in the deal.

Rent your balance sheet before you sell it. Co-GP capital is deal-by-deal: specialists fund 80–90% of one deal’s GP commitment ($1M–$10M checks, closing in 45–60 days) for 25–50% of that deal’s GP economics — then you’re free. A GP-stakes sale is permanent: investors buy roughly 20% of the management company itself — non-voting, perpetual — priced institutionally near 8–12x fee-related earnings, targeting 7% to mid-teens returns. Sell platform equity only when recurring fee income is large enough to command that multiple; until then, co-GP preserves the upside. Qualify (GP stakes): institutional-scale fee-related earnings and a fund track record.

Four terms decide whether your mezz lender can save the deal: cure rights (market is 5–10 business days on monetary defaults, 30–60 days non-monetary), the standstill (60–180 days before the mezz lender can finish a UCC foreclosure — a bare Article 9 sale runs 30–60 days), the purchase option (mezz buys the senior loan at par plus accrued on default), and qualified-transferee tests pinning replacement-guarantor net worth and liquidity. 2026 mezz pricing: 11–13% on stabilized multifamily up to 13–16% on Class A office, 1–2% origination, total leverage to 75–80%. Qualify: institutional-quality sponsor, senior-lender-approved intercreditor.

A NAV facility borrows against a fund’s entire portfolio value rather than unfunded LP commitments — liquidity without selling assets. 2026 market terms: LTV typically 5–25% of NAV (grids reach 60% for well-diversified books), 3–5-year tenors, and recourse-light structures priced roughly 140 bps above comparable secured facilities; NAV deployment was projected to hit $70 billion in 2025. Dominant uses: follow-on investments (45% of facilities), add-on acquisitions, and continuation vehicles (~40% of lender deal flow). Lenders want five-plus portfolio assets and block LP distributions on LTV breaches. Qualify: diversified fund portfolio, documented realization path.

Yes — family offices lend across the stack: senior bridge, mezzanine, and preferred equity, and they move fastest when the sponsor is known and the plan is specific. Pricing tracks the 2026 private-credit market: first-lien 8.5–11% all-in at 65–75% LTV, mezzanine 12–20% at 75–85% LTC, preferred equity 10–18%, with 1–2.5 points origination. The catch is access — most don’t advertise. Standard routes in: your broker, attorney, CPA, or a capital desk that places debt with family offices. Qualify: sponsor track record, a specific business plan, and a defined exit.

A subscription line (capital-call facility) is fund-level credit secured by LPs’ uncalled commitments — it lets a sponsor close a deal in days and call capital on a clean quarterly schedule instead of per-deal. 2026 pricing: SOFR + 135–175 bps for top-tier sponsors, 175–275 bps mid-market, plus 30–75 bps unused fees and 25–100 bps upfront. Advance rates run 50–90% of eligible commitments depending on LP credit quality, with 10–25% single-investor concentration caps. A clean mid-market facility closes in 6–10 weeks. Qualify: an institutional-quality LP base with enforceable capital-call provisions.