Real Estate Financing

Empower Growth with Funding Solutions for Property Acquisition and Development.

Have questions about your approval odds? Book a financing call here.

Real Estate Financing Defined

Rather than using their own capital, businesses can work with lenders to acquire, develop or improve real property, or to cover the costs associated with real estate transactions. There are many types of projects that need financing in real estate transactions.

Since real property is illiquid, lenders are typically less aggressive with their terms. To help facilitate continued investment, a lot of transactions in real property are backed by the SBA (Small Business Administration). Programs that SBA offers to small business borrowers, supplement or guarantee part of the loan repayment to the lender, making it easier to get transactions done.

Real Estate Financing Options:

As an example, acquiring land to build a single home is very different then building a housing complex. A lender that is looking to lend against industrial real estate, may not be interested in a shopping mall financing. Financing a warehouse buildout is very different then financing for expanding manufacturing buildings. And then there are special-purpose properties, which are really difficult to finance through traditional channels. The size and the scope is very different from project to project.

Traditional lenders prefer to lend directly to the property owners. However, the property or a business model for a particular enterprise may not fit traditional lender’s criteria. That is more so when it is a special-purpose business, such a gas station or cannabis facility. Talk to our experts when you have questions on specific needs for your company.

Here’s where we can help:

While there are a lot of lenders in the Real Estate Financing space, they aren’t always as accessible as other lenders, as they are very particular about the brokers they work with. Your Deal Source built great relationships with Real Estate Financing lenders that can be matched to your specific needs.

How do we get started?

FAQ

Which lender will I be working with?

It depends on a number of factors, such as the financial condition of your company, dollar amount needed and type of collateral used.

How much money can my company borrow?

We have lenders that provide financing from a hundred thousand to ten million dollars.

What is the process to get a loan?

During your initial consultation or when you fill in the required documents, your company's needs are outlined.
YDS will help you determine which lender, what structure and a range of dollars you can qualify for.

What will happen to the fees I pay if I get turned down by the YDS lenders?

In order to avoid surprises, we recommend working with our consultants and experts before you apply for a loan. Our vetted consultants can spot trouble and help you improve your chances of getting approved.

How are the lenders determining if I qualify for a loan?

Lenders go through an extensive process of verifying the value of collateral, borrowers ability to repay the loans and owners background. Sometimes the lenders hire external experts to conduct appraisals or review documents.
The lender will also look at the economic conditions and their internal process to make a final determination.

Are there any costs associated with this process?

Use of external experts, like an appraiser or an attorney, are necessary to complete many transactions. Those professionals do charge fees for supporting the funding transactions. Those costs are disclosed upfront and can be controlled by the borrower.

What documents am I going to have to provide?

To get funding, lenders require a certain set of documents. In general, all lenders ask for

2 or 3 years of business income tax returns
2 or 3 years of internal financial statements such as balance sheet, income statement and cash flow statements.
Information about the business owners
Information about the collateral provided
Information about the use of capital
Forecast for the next 2 years.

Each lender and each borrower is unique and so a company specific document set may vary.
We’ve created a data room where standard required documents can be stored ahead of time. We recommend that you prepare all required documents in advance. These documents are yours and only you can make them available to anyone else.

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