Funding Your Real Estate Investment

• 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.

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 investors fast, reliable funding in most markets we serve. Your New Western agent can also put you in touch with preferred local lenders in your market.