Which Type of Loan Will Be Best for Your Next Deal?

by | BiggerPockets.com

As you know, there are many types of loans you can get. There are bank loans, hard money loans, private money loans, and even credit card loans that you can seek for your deals. It’s important to know all the different loan options that are out there. But it’s just as important, if not more so, to get to know how to apply those loans properly in your business.

How to Analyze a Real Estate Deal

Deal analysis is one of the best ways to learn real estate investing and it comes down to fundamental comfort in estimating expenses, rents, and cash flow. This guide will give you the knowledge you need to begin analyzing properties with confidence.

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The Art of the Deal

I can tell you firsthand that applying the wrong loan to your deal can make the difference between a profit and a loss. Things like taking a long-term project like a stabilized buy-and-hold an using what I would call “short term” loans on it — such as private money or a credit card— can kill your otherwise profitable deal. The same goes for jumping through the hoops to get long-term bank capital and use it on a deal that doesn’t benefit from that type of money.

Related: 7 Questions Real Estate Investors Should Ask When Selecting a Lender

Related: How to Structure Your Private Loans: An Interview with 4 Real Estate Investors

Watch This Video!

In today’s video, I talk about what types of loans you should consider for wholesale deals (yes, wholesalers need to borrow money sometimes, too), fix-and-flip deals, and buy-and-holds (including BRRRR, turnkeys, and apartment building deals). Be sure to check it out. It’s full of info on different types of loans and how to match them to any type of deal. Check it out!

Do you have questions about pairing loans with specific deals?

Leave a comment or question below! 

About Author

Matt Faircloth

Matt Faircloth, Co-founder & President of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, New Jersey, is a developer and owner of commercial and residential property with a mission to “transform lives through real estate." Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to owning and managing over 370 units of residential and commercial assets throughout the east coast. DeRosa has completed over $30 million in real estate transactions involving private capital including fix and flips, single family home rentals, mixed use buildings, apartment buildings, office buildings, and tax lien investments. Matt Faircloth is the author of Raising Private Capital, has been featured on the BiggerPockets Podcast, and regularly contributes to BiggerPockets’s Facebook Live sessions and educational webinars.


  1. Matthew Dunn

    Hi Matt, great video and very informative! I’m interested in learning more about bridge loans for my first commmercial value add multifamily purchase. Is there a resource you can recommend that explains in more detail the use of bridge lending?

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