New Western

Funding Your Real Estate Investment

Explore Options to Finance
Your Next Deal

Experienced pro or new investor, you have options when buying an investment property.


Cash is king and the fastest and easiest way to fuel real estate investing. Offers are accepted more quickly and investors save on closing and holding costs by avoiding lender fees and interest payments. But, it’s often difficult to pull together capital when you're just getting started or when your money is tied up in another property.

Traditional Loan

A lengthy approval process, strong credit requirements and a significant down payment are all part of the package with conventional loans. While distressed properties usually don’t qualify, these loans are possible for buy-and-hold investors using the BRRRR (buy, rehab, rent, refinance, repeat) strategy, who refinance after rehab, for up to ten properties.

Hard Money Loan

Faster and easier to acquire with low down payments, hard money loans are based on collateral, not credit scores. A property’s After Repair Value (ARV) dictates the loan amount. If for some reason you can’t repay, lenders take the collateral and re-sell it.

Investment Property Loans - The Power of Leverage

Less means more with leverage. But what exactly is leverage?

Your Capital Without Leverage

Your Capital With Leverage

Leverage is using something to gain an advantage. In real estate investing, the idea is to use debt, or other people’s money, to acquire assets and increase ROI.

A traditional mortgage is one example, but working with hard money and private lenders allows you to spread available cash—and risk—across multiple properties. This allows you to scale your business faster. Instead of having all of your available cash tied up in one property, you can use your capital to take on multiple projects, which leads to multiplied returns.

Using leverage also means less of your capital goes into each project. You achieve the same profit, but your cash invested is lower, which means your return on investment is much higher.

Explore Funding with One of Our Preferred Lenders

Sherman Bridge Lending specializes in fast, reliable funding for real estate investors. Close in as little as 24 hours with financing available for up to 90% of your purchase and rehab and no third-party inspection.

How to Evaluate a Lender

All lenders are not created equal. Here are our top 3 considerations for investors looking for a lender to help fund their next investment property.


This is not the time to try someone new. It’s critical to find a lender with a long track record of success. We all know real estate investing is a challenging endeavor. The last thing you need is to have your lender disappear or run out of funds when you’ve got a killer deal ready to go.


Look for an investor-friendly lender. For example, hard money lenders usually have more lenient credit score and income requirements, which can be a key advantage for self-employed investors. As these loans are secured by the asset, lenders put more emphasis on the hard numbers of the deal than your financials when they make a decision.


In order to compete with cash buyers, you need a lender who can close quickly. Unlike traditional lenders, hard money and private lenders can usually close in days, not weeks.

Got Questions? We Have Answers.

  • Conventional Loan: As these loans are under significant regulatory restriction, they require extensive financials for approval and may take a month or two to secure.
  • Crowdfunding: Often involving equity, crowdfunding provides financing through a pool of lenders, often sourced online.
  • Hard Money: Private, short-term loans for investors with less-than-perfect credit, often with higher interest rates.
  • Home Equity Loan/Home Equity Line of Credit (HELOC): Loans that allow you to borrow money against the equity in your home.
  • Peer-To-Peer Lending: Loans obtained directly from other individuals, through websites that match lenders with borrowers. This kind of lending can offer high flexibility and low interest rates.
  • Private Money: This capital is borrowed from personal connections at an agreed-upon interest rate and payback period. These may be passive investors who have the money—but not the time and energy—to be an active investor.
  • Self-Directed IRAs (SDIRA): A special kind of IRA that allows individuals to invest retirement qualified savings into real estate, tapping the account as a way to access capital.
  • Seller Financing: Paying the seller directly with negotiated loan terms, from down payment to interest.

Yes. Obviously credit doesn’t matter if you’re a cash buyer. But, if you’re like many who need help funding investment properties, you can explore financing from private and hard money lenders who have much lower credit requirements than a typical conventional lender.

Yes. It’s important to ask your lender about alternatives as most offer a variety of leverage options – from purchase only to funding up to 100% of the total cost (purchase and rehab). The total loan value is typically determined by the estimated ARV. For example, the Easy90 loan from Sherman Bridge Lending funds up to 90% of the purchase price plus up to 100% of repairs with no third-party appraisal, with the loan amount capped at 70% ARV.

Hard money makes the most sense for investors needing short-term loans quickly without a lot of hoops to jump through. Flippers in particular are strong candidates as they own properties just long enough to increase the value before selling to a new homebuyer.

You can locate hard money lenders in a number of different ways, from Googling “hard money lender” with your city or state, to inquiring among local real estate investment association (REIA) professionals and agents who work with investors. LinkedIn can be another source as can specific hard money lender directories.

No. New Western does not provide financing. However, we work with a variety of lenders and can connect you with several that specialize in financing real estate investment properties. Our preferred lender, Sherman Bridge Lending, offers New Western Acquisitions investors fast, reliable funding in most markets we serve. Your New Western Acquisitions agent can also put you in touch with preferred local lenders in your market.

Read our free real estate investing market report for insights from 2022 and looking ahead to 2023.