Asset-based financing focuses on the investment property and the economics of the transaction when evaluating a financing request. Private lenders for real estate USA may review the property’s value, purchase price, project costs, loan-to-value, loan-to-cost, expected performance, and proposed exit strategy. This approach can be relevant for real estate investors whose projects require financing based on the asset rather than relying exclusively on traditional personal income documentation.
The review can vary depending on the type of investment. A fix-and-flip project may involve purchase and renovation costs, while new construction requires consideration of development expenses and project milestones. Rental financing may focus on the property’s ability to support the investment strategy, while multifamily financing can involve factors such as occupancy, property income, asset value, NOI, and DSCR. The lender considers the complete transaction rather than relying on a single qualification factor.
Investors should also understand that asset-based financing does not mean that every property or project automatically qualifies. Lenders may review borrower experience and financial profile alongside the property and project. For shorter-term acquisitions and renovation opportunities, investors may also research hard money lenders for real estate. Hard money lending falls within private lending and is generally associated with time-sensitive transactions where the financing needs to support a shorter investment period.
InstaLend describes its financing as asset-based and offers five main product categories: fix and flip, SFR, new construction, multifamily bridge, and multifamily term. The provided information states that the company operates in 46 states and does not charge upfront application fees. Its process begins with deal information, followed by property and project assessment, financing structure, approval, closing, and funding. InstaLend states that it can provide a same-day commitment after receiving deal details, with typical closing in 7–14 business days once the appraisal is complete.
