Use the due diligence window
Most purchase agreements give 30 to 60 days of due diligence and a financing period before the deposit becomes non-refundable. The strongest buyers have a lender’s term sheet before that date, so the price, the loan and the business plan are tested together.
| Milestone | Financing step |
|---|---|
| LOI accepted | Indicative sizing and lender targets; proof-of-financing summary if needed |
| PSA signed, diligence starts | Package to lenders; parallel term sheets |
| Before deposit goes hard | Signed term sheet; appraisal and reports ordered |
| Closing | Commitment, loan documents, funding |
Acquisition loan options
| Lender type | What to consider |
|---|---|
| Private and bridge lenders | Acquisitions, renovation and lease-up where the repayment plan and closing deadline need close attention. |
| Banks and credit unions | Property cash flow, borrower relationships, guarantees and credit approval requirements. |
| Life companies | Stabilized assets, leverage and long-term ownership plans. |
| Agency lenders | Multifamily eligibility, operating history and required reports. |
| CMBS lenders | Property cash flow, reserves, loan structure and securitization requirements. |
| HUD lenders | Program eligibility and an application schedule that allows for agency review. |
Confirm the proposed closing schedule with the lender before relying on it. Credit approval, reports, title and loan documents can affect the date. Request a transaction-specific quote for pricing.
When the senior loan isn’t enough
If the loan sizes short of the equity you planned, the usual answers are mezzanine debt, a loan assumption plus supplemental financing, seller financing, or a joint venture partner. Mezzanine and assumption plus seller financing go deeper.
Frequently asked questions
When should I line up acquisition financing?
Before the deposit goes hard. A lender term sheet in hand during due diligence tells you what the loan will size to, what it will cost and what the lender will require, while you can still walk or renegotiate.
How much can I borrow to buy a commercial property?
Loan proceeds depend on the purchase price, appraised value, property cash flow, business plan and lender requirements. We compare the loan amount with the equity and reserves needed to close.
Can the seller’s loan be assumed?
Often, on agency and CMBS loans, subject to lender approval and an assumption fee. A below-market assumable loan plus a supplemental loan or seller financing can beat new debt. We price both.
Do you help with proof of financing for an offer?
Yes. For qualified sponsors we can provide an indicative financing summary for an LOI or a seller who wants to see that the buyer can finance. It is not a commitment to lend.
Other deadlines we work against
Financing on a timeline. Planned around your deadline.
Need to close a commercial real estate loan in 30 days or less? Bridge, debt fund and bank options by timeline, report lead times, and what to send today. $1 million to $200 million.
Construction financing for shovel-ready projects.
Entitlements and permits in hand? Construction loans for shovel-ready multifamily, industrial, BTR and mixed-use projects: bank, debt fund and construction-to-perm, $1M–$200M.
When a lender steps back, the deal doesn’t have to.
Commercial lender pulled out or retraded before closing? Replacement bridge, debt fund and bank financing on a deadline, plus how to protect your deposit or maturity date.
Upcoming maturities, handled early.
Commercial real estate loan maturing in the next 12 months? Compare refinance, extension, bridge and recapitalization options, and see what your next loan will size to.