How to Get Funding for Your Next Real Estate Deal

Securing funding is one of the biggest challenges real estate investors face—especially when trying to move quickly on a promising opportunity. Whether you're flipping houses, building a rental portfolio, or just getting started in real estate, knowing how to find and evaluate funding options is crucial for your success.

This guide will walk you through the main types of financing available, when to use them, and how to navigate the lending process like a pro.

Key Takeaways

• Different investment strategies call for different types of loans.
• Funding sources include traditional banks, hard money lenders, private lenders, and more.
• Understanding the pros and cons of each loan type helps you match financing to your goals.
• Getting lenders to compete for your business can improve terms and speed.

Step 1: Understand the Main Types of Real Estate Investment Loans

Each loan type serves a different purpose. Here are three of the most common funding options for real estate investors:

1. Fix & Flip Loans

These are short-term loans used to buy and renovate a property before reselling it quickly.

• Typical term: 6–18 months
• Often covers purchase + rehab costs
• Ideal for: Investors who buy distressed properties to renovate and sell

2. Buy & Hold Loans

Used to finance long-term rental properties. These loans are more like traditional mortgages but may still come from non-bank lenders.

• Longer terms (15–30 years)
• May require 20–25% down
• Ideal for: Investors building cash-flowing portfolios

3. Bridge Loans

Temporary financing used to secure a deal quickly while arranging long-term funding.

• Fast approvals and short terms (usually under 12 months)
• Higher interest but greater flexibility
• Ideal for: Competitive purchases, auctions, or delayed closings

Step 2: Explore Your Lending Options

There’s more than one way to finance a deal. The key is to align your investment strategy with the right funding source.

Each option has trade-offs. Traditional banks offer low rates but slow approvals. Hard money lenders offer speed but higher costs. Private lenders offer balance, flexibility and frequently have lending options specifically to support real estate investors.

Step 3: Prepare Before You Apply

To speed up the funding process, have your information ready:

• Deal analysis: Show purchase price, rehab costs, ARV (after-repair value), and projected profits.
• Exit strategy: Are you flipping or holding? Lenders want to know how they'll get

Investing software like Connected Investors, provide calculators and deal analysis tools so you are prepared for the funding process.

Step 4: Shop Around and Negotiate

One of the smartest things you can do is get multiple funding offers. This creates competition among lenders and gives you leverage to:

• Lower interest rates
• Reduce fees
• Get more favorable terms (LTV, repayment schedule, etc.)

Remember: Not all lenders specialize in real estate investing. Focus on those who understand investment properties, rehab timelines, and cash flow dynamics. Connected Investors has a network of vetted private lenders who specialize in helping real estate investors.

Final Step: Where to Find the Right Lenders

If you’re ready to fund your next deal, but unsure where to start, you don’t have to go it alone. There are platforms designed to help real estate investors connect with private lenders who understand investment deals—and they’ll even compete for your business.

Explore Private Lenders powered by Connected Investors to access a nationwide network of verified lenders who can help you move fast and fund smarter.

FAQs

1. Can I get funding without a large down payment?

Some lenders offer higher LTV (loan-to-value) or even 100% financing if the deal is strong and includes rehab funds. Others require 10–25% down. Partnering or leveraging business credit can also help fill funding gaps.

2. How fast can I get funding for a real estate deal?

Private and hard money lenders can often close in as little as 5–10 days. Traditional banks may take 30–45 days. Bridge loans can also be funded quickly depending on your documentation.

3. Are private lenders safe to work with?

Yes—as long as they’re vetted. Look for verified lenders with experience in real estate deals, clear terms, and a transparent process. Platforms that pre-screen lenders can help reduce risk.

About the Authors:
Connected Investors is the real estate investing platform that connects buyers, sellers, lenders, and private investors across the country. With cutting-edge technology, funding resources, and a thriving online community, Connected Investors helps entrepreneurs and investors find opportunities, close deals, and grow their wealth through real estate.