A real estate deal is fundable when a lender can see four things: the loan will sit in first lien position, you have real equity in the deal, you have cash reserves to carry it, and there's a clear plan — purchase price, budget, value, and an exit — that works on paper. Get those four right and most of the rest is paperwork. Miss one and even a great property can get a no.
We'd rather tell you the truth in five minutes than waste two weeks of your time. So here's exactly what we look for, why each one matters, and how to show it.
1. First lien position
What it means: the lender's loan is secured first. If the property is ever sold or foreclosed, the first lien gets paid before anyone else.
What it rules out: second mortgages, gap funding stacked on top of our loan, or seller financing that sits ahead of us. No seconds, no gap funding.
Why it matters: the lender's protection is the property. A loan that's second in line is protected only by whatever's left after the first lender is paid — which, in a bad outcome, is often nothing.
How to show it: tell us about every source of money in the deal upfront — partners, private lenders, seller carry, credit lines. Surprises at the title search are how closings die.
2. Real equity in the deal
What it means: you have skin in the game. Your own money goes into the deal alongside the lender's.
What it rules out: 100% financing. We treat 100% financing requests as a non-starter.
Why it matters: equity is the cushion. If the rehab runs over or the market softens, equity absorbs the hit before the loan does. It also keeps everyone's incentives lined up — a borrower with real money in the deal works hard to protect it.
How to show it: know your numbers before you apply. Every program has leverage limits — loan-to-cost, loan-to-value, or a cap on after-repair value. The gap between what the deal costs and what the lender will lend is your equity. (Our guide on LTC vs. LTV vs. ARV walks through the math.)
Equity doesn't have to be all cash. Equity in land you already own, or equity created by buying well below value, can count — but it has to be real, and it has to show up in an appraisal.
3. Cash reserves
What it means: liquidity beyond what you're putting into the deal — enough to carry the project when things take longer than planned. Because they usually do.
Why it matters: most deals that fail don't fail on the spreadsheet. They fail in month seven, when the contractor's behind, the tenant hasn't moved in, or the house hasn't sold, and the borrower runs out of cash to make the payments. Reserves are what get a deal from "behind schedule" to "done."
How to show it: recent bank or brokerage statements. Think about what the project costs to carry each month — interest, taxes, insurance, utilities — and how many months of that you could cover if the timeline doubled.
4. A clear plan
What it means: the deal makes sense on paper, end to end:
- Purchase price — what you're paying, backed by a contract.
- Budget — a line-item rehab or construction budget, with contingency.
- Value — an after-repair value backed by comparable sales, or market rents backed by comparable rentals.
- Exit — how the loan gets paid off: a sale, or a refinance into a long-term loan.
Why it matters: a lender is underwriting a story about how its money comes back. The plan is that story. The clearer and more conservative it is, the easier it is to say yes.
How to show it: put it in writing, and use numbers you'd bet your own money on — because you are.
What a strong exit looks like
- Selling: comps that support your ARV, a realistic time to sell, and selling costs built in.
- Refinancing into a rental loan: a market rent that covers the new payment at the refinance lender's minimum. For a DSCR loan, that's checked on the debt service coverage ratio. Run it before you buy — see what is a DSCR loan?
The other things we check
The four above decide whether a deal is fundable. These shape how:
- The borrower entity. Our loans go to LLCs and corporations, with a personal guarantee. (Why lenders require an LLC.)
- Business purpose. Investment property only — non-owner-occupied.
- Credit. Requirements vary by program. Fix & flip has no minimum FICO; rental and bridge loans have minimums. Stronger credit means better pricing.
- Experience. Not required for fix & flip. Ground-up construction generally needs one to two prior builds.
- Location. We lend in most states, with a few limits. Check where we lend.
What you'll get from us
The deal has to show us four things. Here are the four you can expect back:
- A straight answer, fast. If your deal isn't fundable, we'll tell you why — and what would change that.
- Our capital or our network's. If your deal fits our lending box, we fund it. If it doesn't, we place it with a lender who wants exactly that asset type and market.
- Every fee in writing, upfront. You'll see all points and fees in writing and sign off before anything moves forward.
- A long-term funding partner. We're building relationships, not chasing one-off closings.
How to package a deal for a fast answer
The fastest yes goes to the most complete file. When you submit a deal, include:
- Property address and type (single-family, 2–4 unit, 5+ unit, land)
- Purchase price and contract — or current value and payoff, for a refinance
- Rehab or construction budget, line by line
- After-repair value with comps, or market rent with rental comps
- Your exit: sell or refinance, and when
- How much cash you're bringing, and your reserves
- Every other source of money in the deal
- Your entity, and anything unusual we should know
Don't have all of it? Send what you have. We'll tell you what's missing — and whether it's worth chasing.
When a deal isn't fundable (yet)
"Not fundable" is rarely the end of the conversation. Usually one of the four is off, and there's a fix:
| If the problem is… | The fix is usually… |
|---|---|
| A second lien or gap funding | Restructure so everything sits behind a single first lien, or bring more cash |
| Not enough equity | A lower purchase price, a smaller loan, or more cash in |
| Thin reserves | A partner, a smaller project, or waiting until you've built a cushion |
| A shaky plan | A conservative ARV, a real budget, or a different exit |
If we can't fix it, we'll tell you that too. A straight no today is worth more than a maybe that falls apart at the closing table.
Business-purpose, non-owner-occupied only; entity borrowers (LLC or corporation) required; full recourse. Rates shown are the lowest offered and depend on borrower FICO, experience, and the deal. Points and fees vary. *Stabilized Bridge offers a no-DSCR option for properties listed for sale and a 1.10x exit-DSCR option for rent-ready properties. Not available in every state. Nothing here is a commitment to lend or an offer of specific terms; all loans subject to underwriting and approval.