Alternative Financing Solutions for Real Estate Investors
Long-term, rental-focused, and portfolio-based loan options designed to support growth beyond traditional hard money loans.
What Are Alternative Real Estate Loans?
Alternative real estate loans are financing options designed for investors whose strategies extend beyond short-term fix-and-flip projects. These loans are commonly used for rental properties, portfolio growth, and long-term wealth-building strategies.
Some alternative loans are funded or serviced by trusted third-party partners, with REIA Hard Money helping guide investors to the right solution.
Unlike traditional hard money loans, alternative loans often focus on:
- Rental income performance
- Portfolio equity
- Long-term ownership goals
Explore Our Alternative Loan Options
Below are the alternative loan programs available to REIA Hard Money borrowers and partners. Each option is designed to support a specific investment strategy.
DSCR Loans
DSCR (Debt Service Coverage Ratio) loans are long-term rental loans that qualify borrowers based primarily on a property’s rental income rather than personal income. These loans are commonly used to refinance rental properties after stabilization or to support long-term portfolio growth. While REIA Hard Money does not originate DSCR loans, we connect investors with trusted third-party lending partners. DSCR loans are ideal for buy-and-hold investors seeking scalable, income-based financing.
Fix-to-Rent (BRRRR) Loans
Fix-to-Rent, or BRRRR (Buy, Rehab, Rent, Refinance, Repeat) loans help investors acquire and renovate properties with the intent to hold them as long-term rentals. REIA Hard Money funds the short-term purchase and rehab portion, then connects borrowers with a third-party lender for DSCR refinancing. This approach allows investors to recycle capital while building rental portfolios. BRRRR loans are best for investors focused on long-term wealth through rentals.
Cross-Collateralization Funding
Cross-Collateralization Funding allows investors to use multiple properties as collateral for a single loan, unlocking equity across their portfolio. This financing strategy is ideal for experienced investors seeking higher leverage or funding for larger or more complex deals. By spreading collateral across properties, investors can often access more flexible loan structures. Cross-collateralization is a powerful tool for portfolio growth and strategic capital deployment.
Double-Close Funding
Double-Close Funding, also known as transactional funding, allows investors and wholesalers to complete back-to-back real estate closings without using their own capital. This short-term funding is designed for deals where contract assignments are not permitted or confidentiality is required. Funds are used only to facilitate the transaction and are repaid immediately at closing. It’s an effective solution for professional wholesalers and investors executing time-sensitive deals.
Please note: both sides of double-closes must be handled by our title company partner.
Alternative Loans vs. Hard Money Loans
While hard money loans are built for short-term execution, alternative loans are designed to support long-term investing strategies.
| Feature | Hard Money Loans | Alternative Loans |
|---|---|---|
| Primary Use | Fix & flip, short-term projects, transactions | Rentals, BRRRR, portfolio growth |
| Loan Duration | Short-term (months) | Long-term or strategic |
| Underwriting Process | Property value & exit strategy | Rental income, equity, portfolio |
| Income Verification | Not required | Often limited or rental-based |
| Who Services the Loan | REIA Hard Money | RHM or trusted third-party partners |
| Ideal For | Speed and execution | Stability and scalability |
Our Role in Alternative Loan Financing
REIA Hard Money supports investors by helping them navigate alternative financing options, even when the loan itself is not originated or serviced by us.
Depending on the loan type:
- We may fund the short-term portion of a project
- We may refer you to a trusted third-party lending partner
- We help ensure your strategy aligns with the right financing path
Our goal is to help investors make informed decisions that support long-term success.
Frequently Asked Questions
Do I need a hard money loan to use an alternative loan?
No. Some alternative loans are used independently, while others complement short-term financing.
Does REIA Hard Money service all alternative loans?
Not always. Some loans are serviced by trusted third-party partners.
Are alternative loans only for experienced investors?
While some options are best for experienced investors, others are accessible to newer rental-focused investors.
Are alternative loans available in Milwaukee?
Yes. Alternative loan options are available to investors in Milwaukee and surrounding Wisconsin markets.
Alternative Loans for Real Estate Investors
REIA Hard Money provides alternative real estate financing solutions for investors in Milwaukee and Southeast Wisconsin. From DSCR loans to BRRRR and cross-collateralized financing, we help investors align their funding with long-term growth strategies.
Not Sure Which Financing Option Fits Your Strategy?
Our team can help you understand your options and point you in the right direction.
