Real Estate
Real Estate Business Loans
Real estate businesses fund operating costs between closings, marketing spend, and the commission gap. Because income is irregular and commission-based, revenue-based funding is usually a better fit than a bank term loan.
For real estate
What it pays for
- Operating costs between closings
- Marketing and lead generation
- Staff and transaction coordinators
- Earnest money and deal costs
- Office and licensing overheads
- Won't affect your credit
- Free, no obligation
- Up to $500K
Why the bank said no
It is usually the same reason a lender says yes.
Commission income is irregular by nature, and a bank's model treats irregular as risky. A lender reading twelve months of deposits sees the annual pattern rather than the gaps between closings.
Why do banks turn down real estate businesses for loans? →Funding options
Funding options for real estate.
The right product depends on what the money is for. One application here goes to the lenders in our network that fund real estate businesses in your state; they decide, typically within 24 hours, and funds can land in as little as 72 hours.
| What you need it for | What usually fits | Why |
|---|---|---|
| Operating costs between closings | Business line of credit | Draw when costs run ahead of closings and repay when they close. |
| Marketing and lead generation | Working capital loan | A one-off push, repaid from the commissions it brings in. |
| Staff and transaction coordinators | Working capital loan | Payroll ahead of the closings the extra capacity handles. |
| Earnest money and deal costs | Working capital loan | Only when the deal closes inside the term; otherwise the cost outruns it. |
| Office and licensing overheads | Business line of credit | Small recurring costs are the cheapest to carry on a line. |
How does each kind of funding work for real estate?
Checked by Alex Makowski.
Two things decide how each product behaves in a trade: how the money comes in, and whether the need comes back. An advance repaid as a share of card sales falls in a slow week; one repaid by a fixed daily or weekly debit against deposits does not. Equipment secures its own financing, so it costs less than unsecured money. A line costs interest only on what is drawn, for the days it is drawn, and is the hardest of the four to open, usually needing a year or two of trading and clean statements. A working capital loan has fixed repayment, so size it to your slowest month.
Merchant Cash Advance for real estate
Commission income arrives by check or wire at closing, not by card, so an advance to an agent or brokerage is a fixed debit against deposits that come in lumps. A month with no closings carries the same debit as a month with five. That mismatch makes it the riskiest of the four here; if you use one, keep it small and short, and be sure the deals under contract close inside its term.
Working Capital Loans for real estate
Fits a one-off push: a marketing campaign, a transaction coordinator, a new hire, sized to what can be repaid out of closings already under contract. Underwriters read the pattern of commission deposits across several months rather than one strong month, so a pipeline of pending deals helps the application only once those deals have closed.
Equipment Financing for real estate
The least relevant of the four for most brokerages, which own little beyond vehicles, computers and signage. A vehicle used for showings can be financed as equipment, at a lower cost than unsecured money. None of the four products is a mortgage or a loan to buy property; that is a different market, and not one we place.
Business Line of Credit for real estate
The natural fit for the months between closings, because that gap recurs: draw when costs run ahead of commissions, pay it down when they land. A brokerage with a track record of commission deposits is a reasonable candidate. A newly licensed agent usually is not yet, and a small working capital loan is the more realistic start.
What your deposits support
Before you apply
What to have ready before you apply.
- Twelve months of bank statements rather than six — the longer window is what shows the pattern in commission income.
- Your pipeline, roughly. It is not underwritten, but it explains a quiet recent month better than nothing does.
- Whether commissions settle into the business account or a personal one. They need to be in the business account.
FAQ
Real Estate: questions owners ask.
- How do agents fund the gap between closings?
- Working capital sized to a typical quiet period, repaid as commissions land. Repayment moving with deposits is the point: a fixed payment in a month with no closing is exactly the problem.
- Can a brokerage get funding with variable income?
- Yes. Variability is expected in this category, and lenders underwrite the pattern across months rather than any single one.
- Is funding available for marketing spend?
- Yes, and it is one of the more common uses. Lead generation costs money before it produces a commission.
Real Estate funding by state
Guides
Guides on this
Why do banks turn down real estate businesses for loans?
Commission income is irregular by nature, and a bank's model treats irregular as risky. Three closings in a month and none the next is normal in the trade and a red flag in the model. A funder reading twelve months of deposits sees the annual pattern rather than the gaps between closings.
Two deals fell through and the next closing is six weeks out. How does a brokerage fund the gap?
For a brokerage or a team with a business account, a working capital loan on twelve months of commission deposits — funded in one to three business days, repaid weekly as the pipeline closes — is usually far cheaper than the commission advances sold to individual agents, which take 10 to 30 percent of a single check. Send the pipeline report with the statements; pending contracts with closing dates are the strongest document a brokerage can show.
One application, every lender we work with
Find out what you qualify for before you need it.
Eleven questions, about two minutes. You see offers side by side and take one, or none.
- Won't affect your credit
- Free, no obligation
- Decisions usually inside 24 hours
- Up to $500K