Private Money Loans
Asset-based financing secured by the property itself, built for investors who need to move faster than conventional underwriting allows.
Learn more about Private Money LoansLoan Services
Rental Property Financing
Longer-term financing for income-producing residential property, underwritten primarily on what the asset earns.
How rental property financing work
Rental property financing is built for holding rather than flipping. Where short-term loans are priced for speed and repaid within months, rental loans are structured to be carried for years, with amortising or interest-only payments that the property's own income is expected to cover.
The central test is coverage: does the rent the property produces comfortably exceed the cost of the debt plus taxes, insurance and operating expenses. Because the income of the asset carries the loan, many rental loans can be underwritten without the full personal income documentation a conventional mortgage requires — which is what makes them workable for self-employed investors and for borrowers who already hold several financed properties.
Potential uses
When this financing fits
- Acquiring a single-family rental, a duplex or a small multifamily building as a long-term hold.
- Refinancing out of a short-term purchase or renovation loan once a property is improved and tenanted.
- Releasing equity from a stabilised rental to fund the next acquisition.
- Financing several properties together under one facility to simplify administration and reporting.
- Investors whose tax returns, after depreciation and write-offs, understate their real capacity to carry debt.
- Borrowers who have reached the limits of how many conventionally financed properties they can hold.
Before you borrow
Borrower considerations
Coverage is the number that decides it
The ratio between the property's net income and its debt service is the heart of the underwrite. Know what your property produces and what it genuinely costs to run — understated expenses produce an unrealistic picture that the lender's own analysis will correct.
Vacancy and turnover are certainties, not risks
A property will be empty between tenants, and turnovers cost money in make-ready work, letting fees and lost rent. Underwrite your own deal with a vacancy allowance and a maintenance reserve rather than assuming twelve months of rent every year.
Prepayment terms deserve close reading
Longer-term investment loans frequently carry prepayment provisions that make an early sale or refinance expensive. If there is any chance you will sell within the first few years, understand exactly what that would cost before you sign.
Insurance is a material cost in coastal markets
In Florida and across much of the Southeast, property and wind insurance is a significant and volatile line item that directly affects whether a deal covers its debt. Get real quotes for the specific property early — a stale or generic estimate can turn a workable deal into a failed one at underwriting.
Know your management plan
Whether you self-manage or appoint an agent changes both your costs and your time commitment. Professional management is a real expense that belongs in the operating numbers from the start.
Short-term rentals are underwritten differently
If the plan is nightly or weekly letting, say so at the outset. Income is assessed differently, local regulation varies sharply between municipalities, and not every loan structure accommodates it.
The process
What happens, step by step
Tell us about the property
Address and type, purchase price or current value, current or projected rent, and whether you are buying, refinancing or releasing equity.
Income review
We work through the rent, the operating costs and the realistic coverage the property produces, and tell you what it will support.
Documentation
Lease agreements or a market rent assessment, operating expense detail, insurance quotes, entity documents, and evidence of reserves.
Valuation
An independent valuation establishes value and, where the property is tenanted, reviews the rents against the local market.
Terms and closing
Written terms covering rate, amortisation, term, prepayment provisions and all costs are issued for your review before closing.
Hold and grow
As the portfolio grows we can review refinancing or consolidating properties to release equity for the next purchase.
Questions
Rental Property Financing FAQs
Can I qualify without providing tax returns?
Many rental loan structures are underwritten principally on the property's income rather than on the borrower's personal income documentation, which is their main advantage for self-employed and portfolio investors. That does not mean no documentation — credit, assets, reserves, entity records and the property's own financials are all reviewed. We will tell you exactly what your file requires once we understand the deal.
How many financed rental properties can I hold?
This is one of the main reasons investors move from conventional mortgages to investor-focused rental lending. Conventional programmes impose limits on the number of financed properties a borrower may hold; asset-based rental lending is generally not constrained the same way. The practical limit becomes whether each property covers its own debt and whether you hold adequate reserves across the portfolio.
Can I finance several properties under one loan?
Portfolio structures covering multiple rentals under a single facility are common and can simplify administration and reporting. The trade-off is that the properties are usually cross-collateralised, so understand how individual properties are released if you later want to sell one. Whether a portfolio loan or separate loans serve you better depends on your plans for the assets.
Should the property be held in an LLC?
Entity ownership is standard in investor lending and most rental loan structures accommodate it directly. The liability and tax implications of how you hold title are matters for your own attorney and accountant — we can tell you what the financing requires, but the ownership decision should be made with your own advisers.
What happens when my short-term loan matures and I want to keep the property?
Refinancing from a short-term purchase or renovation loan into longer-term rental financing is one of the most common paths in investment real estate, and it is worth planning before the short-term loan is even taken out. Once the property is improved and let, the rental loan is underwritten on its stabilised income. Start the conversation several months ahead of maturity.
Do you lend on short-term and holiday rentals?
Tell us at the outset if that is the plan. Nightly and weekly rental income is assessed differently from long-term leases, documentation requirements differ, and local rules on short-term letting vary considerably between Florida municipalities. Raising it early avoids an underwriting surprise.
Next steps
Other financing that may fit
Many projects use more than one of these in sequence — a short-term loan to acquire and improve, then longer-term financing to hold.
Bridge Loans
Short-term financing that covers the gap between where a property is today and the permanent financing or sale that pays the loan off.
Learn more about Bridge LoansFix-and-Flip Financing
Purchase and renovation capital in a single facility, with construction funds released in stages as the work is completed.
Learn more about Fix-and-Flip FinancingCommercial Real Estate Loans
Financing for income-producing and owner-occupied commercial property, underwritten on the asset, its tenants and its cash flow.
Learn more about Commercial Real Estate LoansConstruction & Development Financing
Ground-up and major redevelopment financing, advanced in stages against verified construction progress.
Learn more about Construction & Development FinancingTalk to us about your deal
Tell us the property, the plan and the timeline. We will tell you honestly whether we can help and what the realistic next step is.