When the commercial real estate loan market tightens and traditional lenders freeze up, most investors panic. But the best CRE investors? They get creative.

Here’s the truth:
Banks hate uncertainty. Rising rates, volatile valuations, and regulatory pressure make them pull back—hard. But deals still need to happen. Sellers still need liquidity. And motivated buyers still want to close.

So how do you fund deals when your go-to lender slams the brakes?
You stop thinking “bank loan” and start thinking “capital stack.”

🔥 Strategy 1: Embrace Private Capital
Private lenders love the opportunities banks run from. They move faster, underwrite based on asset value (not just borrower profile), and aren’t bound by rigid credit rules.
Best Use Cases:
• Short-term bridge loans
• Renovation-heavy deals
• Properties with occupancy challenges
Pro Tip: Negotiate interest-only terms to preserve cash flow during repositioning.

💡 Strategy 2: Structure Joint Ventures
When debt gets expensive, equity gets creative.
Instead of killing your deal because the numbers don’t work at 9% interest, bring in an equity partner. This could be:
• High-net-worth individuals
• Family offices
• Other investors who want access to deals but lack the operational chops
Split equity, share upside, and keep the deal alive.

📦 Strategy 3: Use Seller Financing as Your Secret Weapon
When credit is tight, sellers feel the pain too.
Pitch this:
“Instead of waiting for a bank to say yes, why don’t we create a win-win and you carry part of the note?”
Benefits:
• Lower cash-to-close
• Flexible terms
• Seller earns interest instead of waiting on a stale listing
Game Changer: Combine seller financing with a private bridge loan for a layered solution.

🚀 Strategy 4: Tap Your Network for Gap Funding
Raising a few hundred thousand to close the gap can be easier than you think.
• Pitch friends and colleagues on preferred equity with a fixed return.
• Secure collateralized promissory notes.
• Keep terms clear and enforceable (yes, use an attorney).

⚠️ Big Warning:
Never over-leverage because you’re “making it work.” This includes taking a loan with insanely high interest rates and unreasonable terms regardless of how much upside you believe the deal has. Stress test (try in multiple ways) every deal at worst-case debt terms and exit timelines.

Bottom line:
The capital didn’t disappear. It just shifted. Those who know how to access alternative funding sources will be able to continue finding deals, funding deals, and scaling their portfolios when everyone else freezes on the sidelines.

Ready to see if your deal is funding ready? Try our 5 minute Funding Scorecard to see if your deal is viable in this market.

DISCLAIMER: This is not real estate, legal, or financial advice. Please contact your preferred attorney or financial adviser for help specific to your needs or issue.