Real Estate Financing
- Fund Your Next Investment Property
- Leverage commercial real estate financing options
- Fuel your real estate goals with our versatile financing options for purchase, fix & flips, refinance, new construction, and hard money loans.
Take advantage of an 85% approval rate - act now!
As an investor, there are a few different ways to go about financing real estate investments. Each one will have its own set of pros and cons, and your financing approach will depend on the property and the situation. For investors, it’s important to remember that not all financing options are created equal. What works for someone else may not necessarily work for you, but the trick is understanding which real estate financing option will compliment your business strategy. Let us guide you and compare the best real estate financing options.Â
What is Real Estate Financing?
An asset-based loan is secured by assets instead of emphasizing cash flow, which is typically real estate or whatever assets a business has on its balance sheet. The lender will use collateral that can be quickly and easily liquidated. Assets can also be accounts receivables, equipment, land, crop, purchase orders, and inventory. Asset-backed loans secured by collateral offered by Upwise are most often structured as term loans and revolving lines of credit.
Commercial Real Estate Financing Details
1-30 Years Ammortization
As Fast As 2 Weeks
$150K-$200M
6% - 12 %
Real Estate Funding Pros vs Cons
PROS
No Need to Wait for A/R Payment from Customers
Based on Credit of the Receivable’s Business
Account Receivable is Used as Collateral
CONS
Lengthy Paperwork
A/R Must be from Reputable Companies
Fees are based on time it will take for A/R to be paid
How does Real Estate Loan work?
Most borrowers turn to asset-based lending because they’ve had bad luck getting approved by traditional cash flow-based lenders or they want a cheaper cost of capital and confidence in their ability to pay back the loan. In asset-based lending, tangible collateral serves as the most important aspect of the approval process. Borrowers will use an asset for more favorable terms typically resulting in a higher loan approval and lower interest rate.
The loan amount is determined by the market value of your assets. Typically, most lenders will lend 75 to 85% of the value of their accounts receivables, and around 50% of the cost of their inventory or equipment. Also 70% to 90% on the market value of the property and typically 50% of the value of raw land. Â
So, if you have assets that you would like to leverage as collateral for more favorable terms, then this may be the best choice for you.Â
Who Qualifies for Real Estate Financing?
Real estate financing is available to a wide range of individuals and entities, depending on the specific type of financing and lender requirements. Generally, those who qualify for real estate financing include individuals or businesses seeking to purchase, refinance, or invest in real estate properties. Eligibility criteria often consider factors such as creditworthiness, income or cash flow, down payment or equity, and the property’s value and potential.
Lenders typically evaluate the borrower’s credit history, debt-to-income ratio, employment stability, and the property’s marketability and potential for generating income. While requirements may vary among lenders, borrowers with a strong credit profile, stable income, and a sufficient down payment or equity position are more likely to qualify for favorable terms and rates.
It’s advisable for potential borrowers to research and compare lenders, understand the specific requirements of each financing option, and work towards meeting the qualifications necessary to secure real estate financing. Upwise can help you navigate through this process.Â
Real Estate Finance Requirements
over 620+
Valued over $150K
Received 80% LTV
None
* Note: These commercial real estate finance requirements are based on previous Upwise customers and is just an average.
Reach your real estate goals, call us now and unlock your business's full potential.
What do Real Estate Loans cost?
You should know how much the cost of capital will cost you no matter what type of financing you’re applying for.
Let’s take a look at a cost example.
Example of a Real Estate / Asset-Backed Loan
Let’s say you have a commercial property that you operate your business out of, that is worth approximately $1.1 Million.
In most cases, the lender will require you to get an appraisal done to determine the value of your property. Â
Let’s say the property’s appraised cost was determined to be $1 Million. In this scenario, Upwise will be able to lend 80% LTV based on the appraised value of the property. Meaning the loan size will be $800k based on the appraised cost of the asset. Â
The term length will determine the monthly payment and amortization schedule. Payments can be interest only, principal and interest rate, deferred, and an interest reserve may be required.
Consider other fees associated with asset-based loans as well. These fees include but may not be limited to appraisal fees, site survey fees, legal fees, escrow fees, origination fees, packaging fees, prepayment fee, and others.
Don’t overlook fees on your loan offer—be sure to factor in any and all small fees you might have to pay in order to understand the true cost of your asset-based loan.
In order to understand your loan completely, make sure to ask Upwise for an amortization schedule. All fees associated with the proposal will be transparently laid out for each borrower in a term sheet. For more information, please call (646) 837-5522 to speak with an Upwise Real Estate Financing Specialist.Â
Apply Now for a Real Estate Loan.
- Unlock the power of your real estate investments with our fast and flexible financing solutions.
- Supercharge your real estate goals for purchases, fix & flips, refinance, new construction, and hard money loans.
- Maximize your potential profits by accessing our wise funding solutions tailored to real estate professionals like you.
Seize Opportunities in a Competitive Market
Document You'll Need to Apply
Driver’s License
Voided Business Check
Business Bank Statements (Last 4 Months)
Property Information
Property Deed
Balance Sheet
Profit & Loss Statements
Business Tax Returns
Personal Tax Returns
Recent Investment Loans for Real Estate
Single-Family Residential
South Hampton, NY
Commercial Development
Dallas, TX
Cash Out Refinance
Denver, CO
Types of Real Estate Investment Financing
One of the biggest misconceptions of real estate investing is that you need to have lot of money to get started, which simply isn’t true. The secret that many professionals don’t understand, is the fact that there are a number of different real estate financing options available to fund every investment. Because the method in which a specific deal is funded can greatly impact its outcome, understanding the financing aspect is imperative.
Why Upwise for Real Estate Financing
Quick & easy application
Our simple 15-minute application gets you on your way to funding quickly. Most applicants receive a fast decision within days of applying. Then just choose your loan terms and you could have funds deposited into your account within days.
Ensure you make the wise choice
Every Upwise applicant gets a dedicated funding advisor who takes the time to understand your business and it's unique needs. We are here for your support throughout the entire funding process.
Access multiple financing options
Upwise has an extensive product suite and a network of 100+ lenders. This means you're more likely to find the best match for your funding needs.
