Real Estate Loans
Securing the right loan is one of the most important steps in real estate investing. Whether you’re flipping properties, building from the ground up, or expanding your rental portfolio, having multiple financing options ensures you get the best deal.
At Surfside Advisory, we offer a marketplace where direct lenders compete for your business, allowing you to choose the loan that best fits your investment strategy.
We connect real estate investors with a wide range of loan products.
A Debt Service Coverage Ratio (DSCR) loan is a financing option primarily used by real estate investors. Instead of focusing on personal income, lenders evaluate the property’s cash flow to determine loan eligibility.
Advantages Of DSCR Loans
- No Personal Income Verification
- DSCR loans qualify borrowers based on rental income, making them ideal for self-employed investors or those with complex finances.
- Higher Loan Amounts
- Investors can qualify for larger loans than they might with traditional financing.
- Lenders focus on the DSCR ratio, so as long as rental income supports loan payments, additional financing is easier.
- No Limit on Number of Properties Financed
- Traditional lenders often cap the number of financed properties. DSCR lenders are more lenient, allowing investors to grow their portfolios faster.
- Bottom Line: DSCR loans are a great tool for real estate investors looking for flexible financing without personal income verification. They enable faster approvals, higher loan amounts, and scalability while focusing on rental income rather than personal financials.
A hard money loan is a short-term, asset-based loan secured by real estate. These loans are primarily used by real estate investors for fix-and-flips, bridge financing, land acquisition, and distressed property purchases.
Advantages of Hard Money Lending
- Fast Approval & Funding
- Traditional loans can take weeks or months; hard money loans often close in days.
- Ideal for investors needing quick access to capital for time-sensitive deals.
- Flexible Qualification Criteria
- Approval is based on the property’s value, not personal income or credit score.
- Great option for investors with low credit scores, self-employment income, or past financial issues.
- Bridge Loan for Quick Transactions
- Investors can use hard money loans as bridge financing to secure a property while arranging permanent financing.
- Useful when traditional funding is delayed or unavailable.
The Bottom Line;
Hard money loans are fast, flexible, and asset-based, making them an essential tool for real estate investors who need quick financing for fix-and-flips, distressed properties, or short-term bridge loans. While they have higher interest rates than traditional loans, their speed and ease of approval make them invaluable for aggressive investment strategies.
A ground-up construction loan is a short-term loan used to finance the development of a new property from scratch. These loans are typically used by real estate investors, developers, and builders who want to construct residential, multifamily, or commercial properties.
Advantages of a Construction Loan
- Interest-Only Payments During Construction
- Borrowers typically only pay interest on the amount drawn during the construction phase.
- Keeps initial costs low until the project is completed and refinanced or sold
- Loan Amount Based on After-Repair Value
- Lenders focus on the after-repair value (ARV) rather than just the land’s current worth. This can help with securing the needed funds to build your home and maximize ROI.
- Many lenders offer 80-90% Loan-To-Cost (LTC) financing, reducing the amount of upfront capital needed.
- No Personal Income Verification
- Approval is based on the project’s feasibility and borrower experience, not personal income
- Great for real estate investors and builders who reinvest profits rather than show high taxable income
The Bottom Line: Ground-up construction loans provide flexible, high-leverage financing for new real estate development. They offer interest-only payments, faster funding, and LTC ratios, making them ideal for investors and builders looking to develop profitable properties.
A bridge loan is a short-term loan used to “bridge the gap” between immediate financing needs and long-term funding. In real estate, investors and developers use bridge loans to quickly acquire properties, cover temporary cash flow gaps, or secure new opportunities while waiting for permanent financing.
Advantages of a Bridge Loan
- Fast Approval & Funding
- Bridge loans can close in days, whereas traditional loans may take weeks or months.
- Ideal for competitive real estate markets where speed is crucial.
- No Long-Term Commitment
- Typically structured as 6 to 24-month loans, allowing flexibility without a long-term obligation.
- Borrowers can pay off the bridge loan without a prepayment penalty once they sell their current home
- Can Be Used for Commercial & Residential Properties
- Suitable for single-family, multifamily, mixed-use, and commercial real estate.
- Also used for land acquisitions and new construction financing
The Bottom Line:
Bridge loans provide fast, flexible, and short-term financing for investors who need to act quickly on real estate deals. They are ideal for acquiring, renovating, or transitioning properties while waiting for permanent financing or a profitable exit.
