How to Finance an Investment Property

Real estate investors have more than one way to finance an investment property, and the right structure depends on the asset, business plan, borrower profile and intended exit. Landlord Lending works across multiple investment-property lenders, so exact eligibility, leverage, pricing, documentation and other guidelines vary by lender, program, property and overall transaction strength.

Start With the Investment Strategy

Financing should follow the business plan. A stabilized rental, distressed acquisition, construction project and transitional property require different capital structures.

Long-Term Rental Financing

Stabilized rentals may fit DSCR or other long-term investment-property financing where rent, value, leverage and borrower strength support the loan.

Buy & Rehab Financing

Properties requiring renovation may need short-term acquisition-and-rehab capital before they are ready for long-term rental financing or sale.

Ground-Up Construction Financing

New construction requires a budget, plans, permits, builder information, draw administration and a credible completion and exit strategy.

Bridge Financing

Bridge loans can provide transitional capital when a property or transaction does not yet fit permanent financing.

Match the Exit Before You Close

Investors should know whether the likely exit is sale, refinance or long-term hold before selecting the acquisition loan.

How Landlord Lending Helps

Landlord Lending helps real estate investors evaluate financing based on the property and business plan, then identify appropriate options across its lender network. The objective is to align the capital structure with the acquisition, rehab, construction, refinance or hold strategy rather than force every deal into one program.

Explore the DSCR Loan to Buy and Buy and Rehab Loan and Bridge Loan to Buy.

Looking for Financing for an Investment Property?

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Frequently Asked Questions

What is the best way to finance an investment property?

There is no universal best structure. Financing should match the property condition, investment strategy, borrower profile and planned exit.

Can investors finance properties that need repairs?

Yes. Buy-and-rehab or bridge financing may be appropriate when a property is not yet ready for long-term rental debt.

Should I choose financing before making an offer?

Investors benefit from understanding likely financing and cash requirements before committing to a transaction.