Real Estate Lending Questions Answered
Key Real Estate Capital (KREC) is a nationwide private capital lender for real estate investors. This page answers common questions about real estate financing and about the lending programs KREC offers — each answer links to the program or resource it relates to.
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About Key Real Estate Capital
Who KREC is, what we do, and who we work with.
What is Key Real Estate Capital?
Key Real Estate Capital (KREC) is a nationwide private capital lender for real estate investors, headquartered in San Diego, California. KREC provides asset-based financing for investment property — including bridge, fix and flip, new construction, rental, rental portfolio, and multifamily or commercial loans — underwritten around the property and the project rather than a conventional income file.
How it works
KREC works directly with investors, developers, brokers, and referral partners. Loans are secured by non-owner-occupied real estate, and each request is reviewed against the specific property, business plan, and exit strategy.
What does Key Real Estate Capital do?
KREC originates and funds real estate loans for investors. That includes short-term financing for acquisitions, renovations, and ground-up construction, and longer-term financing for rental properties and rental portfolios. KREC reviews the property, the plan, and the borrower's exit strategy, then structures a loan and funds it — commonly in days rather than months.
See all loan programsWho does Key Real Estate Capital work with?
KREC works with real estate investors, developers and builders, rental property owners, and brokers or referral partners who bring deals to us. Borrowers range from first-time investors to experienced operators. Properties financed are investment properties — non-owner-occupied residential, multifamily, and commercial assets.
Partner with KRECWhat types of real estate financing does Key Real Estate Capital offer?
KREC offers bridge loans, fix and flip loans, new construction financing, single property rental (DSCR) loans, rental portfolio loans, multifamily and commercial financing, HELOCs on investment property, and second-position cash-out loans. Programs differ in term length, leverage, and how they are underwritten, so the right one depends on the property and the plan.
How it works
Short-term programs (bridge, fix and flip, construction) are built around a project and a defined exit. Longer-term programs (single rental, rental portfolio, commercial) are underwritten primarily on the property's cash flow.
How do I contact Key Real Estate Capital?
You can call KREC at (619) 369-4444, text 619-376-1161, or email [email protected]. The company is headquartered at 401 W A St, Suite 200, San Diego, CA 92101 and lends nationwide. You can also submit a loan request online and a member of the team will follow up.
Contact the KREC teamRelated questions
Loan types
Plain-language definitions of the financing programs we offer.
What is a bridge loan?
A bridge loan is short-term real estate financing that provides capital for a property or project when timing matters — for example, closing on a new property before an existing one sells or before long-term financing is in place. KREC bridge loans run 6 to 24 months, start at 8.5%, go up to 75% LTV, and can close in 7 to 14 days.
How it works
Underwriting focuses on the asset's value and the borrower's exit strategy rather than lengthy income documentation. The loan is repaid when the property is sold or refinanced into longer-term financing.
When it may be useful
Bridge financing is often used for time-sensitive acquisitions, properties that are not yet stabilized, and situations where a conventional lender's timeline would cost the investor the deal.
What is a fix-and-flip loan?
A fix-and-flip loan is short-term financing used to purchase (or refinance) and renovate an investment property before reselling it. KREC funds up to 95% of the purchase price with rehab funds released in draws, on terms of 6 to 24 months, with rates starting at 7.75% and loan amounts from $75K to $10M.
How it works
The loan is sized against the purchase price and the renovation budget, with a cap based on the after-repair value (up to 75% LTARV). Renovation money is advanced as draws as work is completed and verified.
When it may be useful
This structure fits investors buying a property that needs work, where a conventional lender would not finance the renovation and the plan is to resell or refinance on completion.
What is new construction financing?
New construction financing is short-term funding that covers land, labor, and materials for building a property until it is completed and then sold or refinanced. KREC new construction loans run 12, 18, or 24 months, start at 10.25%, cover up to 92.5% of total cost basis, and range from $100K to $20M.
How it works
Funds are released through a construction draw schedule as verified milestones are reached, with a cap based on the projected after-repair or completed value (up to 75% LTARV).
When it may be useful
Ground-up projects and heavy value-add builds that conventional lenders typically decline, where the borrower has plans, a line-item budget, and a general contractor in place.
Related questions
What is a rental property loan?
A rental property loan is longer-term financing for an individual investment property, underwritten primarily on the rent the property produces rather than the borrower's personal income. KREC single property rental loans start at 5.875%, reach 80% LTV on purchase or rate-term refinance, and are available as 30-year fixed or interest-only options.
How it works
Lenders compare the property's rental income to its debt payment — the debt service coverage ratio, or DSCR. KREC's minimum DSCR is 0.75x with a 620 minimum FICO and no seasoning requirement.
When it may be useful
Useful for investors buying or refinancing a single rental — short-term or long-term — who want financing based on the asset's performance instead of tax returns.
What is a rental portfolio loan?
A rental portfolio loan finances several rental properties under one loan instead of one loan per property. KREC portfolio loans start at 7.5%, run $500K to $10M on 5 to 30-year terms, reach 75% LTV, and require a minimum of three stabilized properties with a DSCR of at least 1.0x.
How it works
Properties are cross-collateralized under a blanket loan, which consolidates payments and reporting and can support portfolio-level cash-out refinancing.
When it may be useful
Suited to owners scaling a rental business who want a single closing and one set of loan terms across multiple stabilized doors.
What is multifamily financing?
Multifamily financing funds apartment and multi-unit residential buildings, typically five units or more, based on the property's income. KREC finances multifamily assets from $500K to $20M on 5 to 30-year terms with rates starting at 6.5%, up to 80% LTV, and a minimum DSCR of 1.15x.
How it works
Underwriting reviews the rent roll, leases, and operating statements to establish net operating income, then sizes the loan against that income and the property's value. Stabilized and transitional assets are both considered.
When it may be useful
Appropriate for investors acquiring or refinancing multi-unit residential property, including value-add business plans.
What is commercial real estate financing?
Commercial real estate financing funds income-producing property that is not one-to-four-unit residential — retail, office, industrial, mixed-use, and hospitality. KREC finances these asset types from $500K to $20M, with rates starting at 6.5%, leverage to 80% LTV, a 1.15x minimum DSCR, and a 680 minimum credit score.
How it works
The lender reviews leases, rent roll, and operating statements, and may require environmental reports. Entity ownership is required, and terms depend heavily on asset type and tenancy.
When it may be useful
Best fit for experienced investors acquiring, refinancing, or repositioning commercial assets.
What is a second-position cash-out loan?
A second-position cash-out loan lets an owner borrow against equity while leaving the existing first mortgage in place. Because the new loan sits behind the first lien, terms depend on the property, the existing loan, and how much equity remains — so KREC reviews these requests case by case.
When it may be useful
Useful when an owner wants to access equity without refinancing a first mortgage they would rather keep, for example to fund another purchase or a renovation.
What is a HELOC on an investment property?
A HELOC is a revolving line of credit secured by property equity that you draw from as needed instead of receiving one lump sum. KREC offers HELOCs from $75K to $700K on investment property, with rates starting at 7%, CLTV to 80%, terms of 10 to 30 years, and closings in as fast as five days.
How it works
During the draw period you can borrow, repay, and borrow again, with interest-only payments available on the drawn balance — which makes the same capital reusable across projects.
What is DSCR and why does it matter?
DSCR (debt service coverage ratio) compares a property's rental income to its debt payment. A 1.0x DSCR means income exactly covers the payment. Lenders use it to size rental loans without personal income documents. KREC's minimum DSCR is 0.75x on single rentals, 1.0x on rental portfolios, and 1.15x on multifamily and commercial.
See DSCR rental loan termsFor borrowers
How investors approach financing and what to prepare.
How do I finance an investment property?
Start with the property and the plan, then match them to a loan type. Short holds with renovation work point to fix and flip or bridge financing; long-term holds point to a DSCR rental loan; multiple stabilized rentals point to a portfolio loan. A private lender sizes the loan against the property's value or income, so the plan drives the structure.
How it works
Expect the lender to review the property, purchase price or current value, renovation or rent assumptions, your experience, the holding entity, and your exit strategy.
How do investors finance fix-and-flip projects?
Most investors use short-term, asset-based financing that covers both the purchase and the renovation. KREC funds up to 95% of purchase price with rehab money released as draws, capped by after-repair value, on 6 to 24-month terms. The loan is repaid when the finished property sells or refinances into longer-term financing.
How it works
A line-item renovation budget is central: it determines the draw schedule and, together with the projected after-repair value, the maximum loan amount.
How does private real estate lending work?
A private lender funds real estate loans using private capital rather than deposits, and underwrites primarily on the asset — its value, its income, and the borrower's exit plan. That usually means faster decisions, more flexible structures, shorter terms, and pricing above conventional mortgage rates. Loans are secured by non-owner-occupied investment property.
How it works
The lender reviews the property and business plan, issues terms, verifies value and title, and funds. Because the review is asset-focused, closings measured in days are realistic.
What information do lenders typically review?
For an asset-based loan, expect a review of the property and its value, the purchase price or existing debt, the renovation or construction budget, projected rent or resale value, your investing experience, the entity taking title, available reserves, credit, and your exit strategy. Title and property insurance are required at closing.
How it works
Program minimums differ — for example a 600 minimum FICO on fix and flip and construction, 620 on single rentals and bridge, and 680 on commercial. Specific conditions vary by transaction.
What should I prepare before applying?
Gather the property address and purchase contract or current loan details, a line-item renovation or construction budget if there is work planned, rent figures or comparable sales supporting your exit, your entity documents, proof of reserves, and a short summary of your investing experience. Having these ready is the fastest path to accurate terms.
Start a loan requestHow does the real estate lending process work?
The process runs in five stages: identify the property and plan, choose the financing structure, submit property and borrower information, complete underwriting and verification, then close and fund. With asset-based financing, several KREC programs close in 7 to 14 days, and a HELOC can close in as fast as five days.
See the lending processApplication and process
What happens from application through funding.
How do I apply for financing with KREC?
Submit a loan request online, call (619) 369-4444, or email [email protected]. Include the property address, your plan for the property, the loan amount you are seeking, and your timeline. A member of the team reviews it and follows up to confirm details and outline available structures.
Apply for financingWhat happens after I apply?
A KREC team member reviews the property and the plan, confirms the details that affect pricing and leverage, and returns loan terms for your review. On several programs terms come back within 24 to 48 hours. Once you accept, the file moves into underwriting and third-party verification.
Submit your dealHow does underwriting work on a private real estate loan?
Underwriting confirms the property's value, the strength of the plan, and the viability of the exit. That includes valuation or appraisal (some programs waive appraisal), title review, insurance, entity and credit checks, and review of the renovation or construction budget. Because the focus is the asset, this is materially faster than conventional mortgage underwriting.
How it works
Exact conditions vary by transaction and program — a construction loan requires plans, a budget, and general contractor verification, while a DSCR rental loan centers on rent and value.
What happens before closing?
Before closing, the file clears its remaining conditions: final valuation, clear title, required insurance binders (including builder's risk on construction), entity documentation, and proof of reserves. Closing documents are prepared and sent for signature, and closing is coordinated with the title or escrow company.
How does funding work?
For purchase and refinance loans, funds are wired to the closing agent at closing. On renovation and construction loans, the acquisition portion funds at closing and the remaining budget is released through draws as verified work is completed. Draw timing depends on the schedule set for your project.
Talk to the KREC teamRelated questions
Comparisons
How different financing options actually differ.
Bridge loan vs conventional loan: what is the difference?
A bridge loan is short-term (6 to 24 months at KREC), asset-based, and priced above conventional financing in exchange for speed and flexibility. A conventional loan is long-term and amortizing, priced lower, but underwritten on personal income and documentation and slower to close. Bridge financing is a tool for the transition; conventional financing is for the hold.
How it works
Many investors use both in sequence: bridge financing to acquire or stabilize a property, then a conventional or DSCR loan to hold it long term.
Private lender vs bank: which is right for an investment property?
Banks lend against documented borrower income and standardized property profiles at lower rates, on longer timelines, and with narrower guidelines. Private lenders underwrite the asset and the plan, can close in days, and finance renovations, construction, and transitional property banks decline — at higher rates. The tradeoff is cost and term against speed and flexibility.
See how KREC lendsFix-and-flip financing vs traditional financing
Traditional mortgages fund a property in its current condition and generally will not advance renovation money. Fix-and-flip financing funds the purchase and the rehab budget together, sized against after-repair value, on a short term with interest-only payments. That structure matches a project that is meant to be improved and exited, not held for 30 years.
Explore fix and flip financingRental portfolio financing vs financing properties individually
Financing rentals individually gives you separate loans you can sell or refinance one at a time, but means repeated closings and closing costs. A portfolio loan places multiple properties under one blanket loan with a single closing and one set of terms — simpler to manage and useful for portfolio-level cash out, at the cost of per-property flexibility.
Compare portfolio financingRelated questions
Construction financing vs bridge financing
Construction financing funds work that has not been built yet, releasing money through a draw schedule tied to verified milestones and requiring plans, a line-item budget, and contractor verification. Bridge financing funds an existing property to solve a timing gap, with fewer project controls. The determining factor is whether the value comes from building or from timing.
Learn about construction loansRelated questions
DSCR financing vs traditional mortgage financing
A DSCR loan qualifies the property: the lender compares rental income to the loan payment, so tax returns and W-2s are generally not required. A traditional mortgage qualifies the borrower through personal income and debt-to-income ratios. For investors whose returns are strong but whose tax filings understate cash flow, DSCR underwriting is often the practical route.
See DSCR rental loansRelated questions
In-depth answer guides
Longer explanations of each financing type, including how it works, what to consider, and who it may suit.
What is a bridge loan?
A bridge loan is short-term real estate financing that provides capital for a property or project when timing matters — for example, closing on a new property before an existing one sells or before long-term financing is in place. KREC bridge loans run 6 to 24 months, start at 8.5%, go up to 75% LTV, and can close in 7 to 14 days.
Read the full answerWhat is a fix-and-flip loan?
A fix-and-flip loan is short-term financing used to purchase (or refinance) and renovate an investment property before reselling it. KREC funds up to 95% of the purchase price with rehab funds released in draws, on terms of 6 to 24 months, with rates starting at 7.75% and loan amounts from $75K to $10M.
Read the full answerWhat is new construction financing?
New construction financing is short-term funding that covers land, labor, and materials for building a property until it is completed and then sold or refinanced. KREC new construction loans run 12, 18, or 24 months, start at 10.25%, cover up to 92.5% of total cost basis, and range from $100K to $20M.
Read the full answerWhat is a rental property loan?
A rental property loan is longer-term financing for an individual investment property, underwritten primarily on the rent the property produces rather than the borrower's personal income. KREC single property rental loans start at 5.875%, reach 80% LTV on purchase or rate-term refinance, and are available as 30-year fixed or interest-only options.
Read the full answerWhat is a rental portfolio loan?
A rental portfolio loan finances several rental properties under one loan instead of one loan per property. KREC portfolio loans start at 7.5%, run $500K to $10M on 5 to 30-year terms, reach 75% LTV, and require a minimum of three stabilized properties with a DSCR of at least 1.0x.
Read the full answerWhat is multifamily and commercial financing?
Multifamily financing funds apartment and multi-unit residential buildings, typically five units or more, while commercial financing covers retail, office, industrial, mixed-use, and hospitality assets. KREC finances both from $500K to $20M on 5 to 30-year terms, with rates starting at 6.5%, up to 80% LTV, and a minimum DSCR of 1.15x.
Read the full answerStill have a question?
Tell us about the property and your plan, and a KREC loan specialist will walk through the options that fit.