Our bread and butter programs consist of short-term, asset-based loans. Borrowers pledge real property as collateral to attract private capital. We’ve become expert underwriters, and a trusted source for fast real estate loans. Asset based loans have many names and can be structured a myriad of ways.

These loans are also known as:


Bridge Loan

Hard Money Loan

Short-term Note

Real Estate Loan

Private Capital

Fix-n-Flip Loan

Rehab Loan

Cash-out Refinance

Acquisition and Development Loan

Court Step Loan

Auction Loan


Collateral Types

Real estate entrepreneurs and developers are often under time restraints or limited by structure. These loans allow borrowers to find the capital needed to quickly address opportunistic real estate transactions.

Collateral assets come in many forms, too. Real property can be:

Commercial Properties

Office Complexes

Retail Centers

Assisted and Senior Living Facilities

Multifamily Properties

Hospitality (Hotel & Motel)

Medical Offices and Clinics



Raw Land

Cash-flowing Residential Homes & Investment Properties

Specialty Assets (Resorts, Event Centers, Entertainment Venues)

Multi-use Properties




The majority of loans facilitated by Funding Database are closed by one lender, who typically takes a first lien on the real estate collateral. In other cases, lenders syndicate to close a transaction. This occurs when lenders take a commensurate position in a fractionalized note and communicate with borrowers through a servicer.


Most real estate assets are homes to businesses of all types. This provides additional security opportunities for lenders. Borrowers are often required to pledge additional assets, including:



Furnishing, Fixtures, and Equipment (FF&E)

Business Income




It’s common for lenders to require a personal guarantee, which requires the borrower to pledge their personal financial strength and ensure the loan gets paid. Asset-based loans are typically paid off through long-term refinance of the collateral, or liquidation of the assets. If this fails to happen, the lender can foreclose on the pledged assets and collect on the personal guarantee. In order to ensure that default and foreclosure is unlikely, lenders underwrite loans intensively to understand the risks associated with the loan. Some of the items required as due diligence items are:



Application and Credit Authorization

Valuation (Broker Price Opinions or Appraisal)

Use of Funds and Disbursement Schedule

Executive Summary or Business Plan

Corporate Documents

Personal and Corporate Financial Statements

Pro Formas and Projections

Pictures and Videos of the Property

Title Insurance Policy

Tax Assessment and Insurance Binder

Explanation of Assets and Exit Strategies


It’s also common that truly-qualified lending sources require to inspect collateral prior to funding. Often times, lenders charge a nominal fee to fund this inspection and other pre-funding expenses. Any fee that exceeds $7500 prior to funding should be scrutinized by the prospective borrower.


Because of the risks and timeframes associated with asset-based loans, lenders charge between 2 and 12 origination points and 8-18% annual interest. Private lenders are more likely to creatively structure a flexible loan that works for all parties than a bank or institution would. Private asset-based lending pricing is typically more expensive than bank rates, but a cheap alternative to equity.


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