Asset Based Lending

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Asset Based Lending

Robert Johnson
Investor · Fort Walton Beach, FL · Member since 2022 · 54 posts · 15 votes

Has anyone purchased commercial property utilizing Asset Based Lending?

Who did you use?

What did the terms look like?

How did it help you versus traditional lending with a DSCR LOAN?

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Alexis Sostre
Lender · Los Angeles, CA · Member since 2020 · 65 posts · 15 votes
1y

I offer asset-based lending for commercial deals. Terms are usually 65–75% LTV, interest-only, short-term (1–5 yrs), with rates a bit higher than DSCR.

The big advantage vs. DSCR is flexibility: you can qualify based on the asset itself rather than strict cash flow ratios. That makes it great for value-add or repositioning projects where DSCR doesn't quite fit yet. Many investors use ABL to acquire, stabilize, then refinance into DSCR once the property cash flows stronger.

A lot of my clients use it as a bridge strategy — acquire or reposition with asset-based financing, then refinance into DSCR or conventional once stabilized.

If you’d like, I can run through your scenario and see what terms we can line up for you. Happy to connect!

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  • Alexis Sostre
    Lender · Los Angeles, CA · Member since 2020 · 65 posts · 15 votes
    1y

    I offer asset-based lending for commercial deals. Terms are usually 65–75% LTV, interest-only, short-term (1–5 yrs), with rates a bit higher than DSCR.

    The big advantage vs. DSCR is flexibility: you can qualify based on the asset itself rather than strict cash flow ratios. That makes it great for value-add or repositioning projects where DSCR doesn't quite fit yet. Many investors use ABL to acquire, stabilize, then refinance into DSCR once the property cash flows stronger.

    A lot of my clients use it as a bridge strategy — acquire or reposition with asset-based financing, then refinance into DSCR or conventional once stabilized.

    If you’d like, I can run through your scenario and see what terms we can line up for you. Happy to connect!

    3Reply
  • Robert Johnson
    OP
    Investor · Fort Walton Beach, FL · Member since 2022 · 54 posts · 15 votes
    1y

    Thank you @Alexis Sostre. I have an opportunity to get my deal done with 100% financing. I am hoping other folks will see this thread and chime in if they used this strategy before and let me know how it helped them.

    1Reply
    • Erik EstradaBusiness Member
      Lender · Member since 2022 · 6k+ posts · 1k+ votes
      1y
      Quote from @Robert Johnson:

      Thank you @Alexis Sostre. I have an opportunity to get my deal done with 100% financing. I am hoping other folks will see this thread and chime in if they used this strategy before and let me know how it helped them.


      This might be possible with a seller finance in 2nd position and a 10% Contribution from a JV Partner.. I have not seen a lender offer 100% financing on a long term loan for a stabilized property

      [email protected]818-269-7983
      LuxePrivate Investments LLC 572 Reviews
      WebsiteView Page
      2Reply
    • Robert Johnson
      OP
      Investor · Fort Walton Beach, FL · Member since 2022 · 54 posts · 15 votes
      1y

      Hi @Erik Estrada! property is not completely stabilized. It is a value ad property. The 100% financing I'm considering would be interest only 3 to 5 years and then it would be refinanced to a DSCR on a long-term hold. Your thoughts?

      0Reply
    • Erik EstradaBusiness Member
      Lender · Member since 2022 · 6k+ posts · 1k+ votes
      1y
      Quote from @Robert Johnson:

      Hi @Erik Estrada! property is not completely stabilized. It is a value ad property. The 100% financing I'm considering would be interest only 3 to 5 years and then it would be refinanced to a DSCR on a long-term hold. Your thoughts?


       If it needs rehab it might be possible if you have 5+ exits in the last 3 years. The max term on these loans are 12-24 months 

      [email protected]818-269-7983
      LuxePrivate Investments LLC 572 Reviews
      WebsiteView Page
      0Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 662 posts · 239 votes
    1y

    Hey @Robert Johnson welcome to BP!

    Purchasing commercial property with Asset-Based Lending (ABL) offers advantages like
    increased access to capital where traditional loans might be limited, leveraging the property's inherent value as collateral rather than solely relying on cash flow or credit history, and a potentially faster, more flexible approval process for investors who need to move quickly. This method allows for growth by freeing up capital tied to existing assets and can be ideal for investors with strong collateral but less consistent cash flow.

    We offer asset-based lending for commercial deals. We're conveniently located in Palm Beach, FL and are open to discus your scenario and see what terms we can offer - feel free to DM me if you'd like to discus further.

    JCREIG Capital Funding
    WebsiteView Page
    0Reply
  • Drago Stanimirovic
    New to Real Estate · Miami, FL · Member since 2024 · 1k+ posts · 441 votes
    1y

    Robert, asset-based lending (ABL) is great when you have strong collateral but need flexibility, like in value-add or unstabilized commercial deals. The lender focuses on property value, not income, which sets it apart from DSCR loans that rely on cash flow.

    Terms are usually lower LTV (60-70%), higher rates, and shorter durations. You'll pay more, but it's faster and easier to qualify if the income isn't solid yet. DSCR loans are better when your property is stabilized and you want lower costs long term.

    Happy to break down sample terms if you’re comparing options.

    0Reply
  • Account Closed
    Lender · Member since 2025 · 21 posts · 4 votes
    1y

    I've seen asset-based lending work really well for commercial deals where DSCR loans just don't pencil out, especially with timing or leverage needs. Terms can vary widely depending on collateral and exit, but in general they give investors more flexibility than banks will. I work with a network of lenders in this space, so happy to share examples or compare notes if that's useful.

    1Reply
  • Vandana Thapa
    Lender · 10220 SW Greenburg Rd Portland OR United States, OR · Member since 2025 · 16 posts · 8 votes
    1y

    @Robert Johnson Yes, asset-based lending on commercial deals can be a good option when DSCR financing doesn't fit. The main difference is that lenders care more about the property's value and equity than personal income or ratios.

    These loans typically top out around 65–75% LTV. Rates are usually higher than DSCR loans, often in the 8–12% range, and they are short-term, usually 12 to 36 months with interest-only payments.

    The benefit is speed and flexibility. Approval is faster because the lender cares more about the deal itself than the borrower. This makes them useful for properties that need a lot of work or a quick closing..

    The trade-off is cost. Many investors use this type of financing as a bridge to stabilize a property and then refinance into a DSCR or agency loan once the numbers support long-term financing. 

    This response is for educational purposes only and not intended as financial, tax, or legal advice. Always consult your own advisors before making investment decisions.

    1Reply
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