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What Property Types Can a Private Lender Finance?

Eric Rhodes

September 15, 2026 · 7 min read

Private lending is often associated with fix-and-flip houses, but business-purpose bridge financing can cover a much broader range of real estate.

Yieldi lends across residential, commercial, and certain specialty property types. That flexibility matters because many transactions that make economic sense do not fit neatly within a traditional bank’s underwriting model.

In the accompanying video, James Crandall and Molly Geier explain the types of properties Yieldi finances, how leverage typically works, and why an asset-based approach gives borrowers more flexibility than a conventional lending process.

Private Lending Is Primarily About the Asset and the Business Plan

Yieldi is a direct lender, meaning we originate our own loans rather than acting solely as an intermediary between a borrower and another lender.

Our underwriting is asset-based. The property securing the loan is central to the credit decision, along with the borrower’s experience, financial capacity, use of proceeds, and strategy for repaying the loan.

That approach can be useful for transactions that are time-sensitive, transitional, or otherwise difficult to finance through a conventional bank.

It does not mean borrower credit is irrelevant. We still evaluate the borrower and guarantors. The difference is that a credit score by itself does not determine whether a transaction works.

How Yieldi Underwrites Bridge Loans

Residential Investment Properties

Residential real estate represents a significant portion of private bridge lending.

Yieldi finances business-purpose residential transactions including:

  • single-family investment properties
  • fix-and-flip projects
  • rental properties
  • new construction
  • townhomes
  • condominiums

A borrower might use a bridge loan to purchase a property quickly, complete renovations, finish construction, or refinance an existing investment property before transitioning to longer-term financing.

These are business-purpose loans rather than consumer mortgages. The financing is tied to an investment or commercial objective rather than the borrower purchasing a primary residence.

Residential Bridge Loans

Commercial Real Estate

Yieldi also finances a broad range of commercial properties.

Examples include:

  • multifamily
  • retail
  • industrial
  • office
  • self-storage
  • mixed-use properties

Commercial bridge loans can serve several purposes. A borrower may need to acquire a property before permanent financing is available, refinance an approaching maturity, renovate or reposition an asset, or stabilize occupancy before moving to a bank loan.

The underwriting varies considerably by asset class. A fully occupied retail center requires a different analysis from an industrial building, apartment property, or self-storage development.

The common question is whether the real estate, borrower, leverage, and exit strategy support the requested loan.

Commercial Bridge Loan Programs

Specialty and Nontraditional Real Estate

Private lenders can also finance certain assets that conventional lenders may find more difficult to underwrite.

As discussed in the video, Yieldi has experience with specialty transactions involving areas such as:

  • hospitality
  • entitled land
  • cannabis-related real estate
  • other special-use properties

These transactions generally require more property-specific underwriting.

A hotel, for example, cannot be evaluated exactly like a traditional office building because its value and repayment capacity are closely connected to operating performance.

Land presents a different issue because there may be little or no current property income. The lender has to understand entitlements, marketability, the borrower’s development plan, and the intended exit.

Cannabis-related real estate presents additional regulatory and compliance considerations on top of the normal real estate underwriting.

Specialty assets are therefore evaluated individually rather than treated as a single loan category.

Specialty Real Estate Financing

How Much Will a Private Lender Finance?

Property type is only one part of the decision. Leverage matters just as much.

For many Yieldi transactions, maximum leverage is typically around 65% loan-to-value or loan-to-cost, depending on the transaction.

That means a property supported at a value of $2 million might support a loan of approximately $1.3 million at 65% LTV.

There can be exceptions. Particularly strong transactions may support leverage closer to 70%, and in select situations higher leverage may be considered.

Those exceptions depend on the complete credit profile rather than a single metric.

Factors can include:

  • property type and location
  • supported value
  • borrower experience
  • borrower equity
  • property condition
  • cash flow
  • loan purpose
  • exit strategy
  • overall marketability of the collateral

How Loan-to-Value Works in Bridge Lending

The objective is to structure enough leverage for the borrower to complete the transaction while preserving an appropriate collateral cushion for the lender.

Why Borrower Equity Matters

A lender generally wants the borrower to have meaningful equity in the property.

That serves two purposes.

First, it creates additional value between the loan balance and the property’s supported value.

Second, the borrower has its own capital at risk.

A borrower who has invested substantial equity into a project has an economic incentive to protect that investment and execute the business plan successfully.

Equity does not guarantee loan performance, but it is an important part of the overall structure.

Typical Bridge Loan Terms

Yieldi’s typical bridge loan term is approximately 12 months.

That timeframe fits the purpose of bridge financing: solving a short-term capital need rather than replacing long-term permanent debt.

Depending on the loan and circumstances, an extension may also be available.

During the loan term, the borrower generally works toward a defined exit such as:

  • refinancing with a bank or other permanent lender
  • selling the property
  • completing construction
  • finishing renovations
  • stabilizing occupancy or operating performance

How Bridge Loan Exit Strategies Work

A credible exit strategy is important because bridge debt is intentionally temporary.

How Fast Can a Private Lender Close?

Speed is another reason borrowers use private capital.

Traditional commercial lending can involve several layers of underwriting and approval. That process may work perfectly well when a borrower has months to close.

It becomes more difficult when a purchase contract, payoff deadline, auction, or other event creates a compressed timeline.

Yieldi regularly works on transactions where execution speed is important, and we have completed certain loans on exceptionally short timelines.

A fast closing still depends on the borrower providing the necessary information and the lender completing title, valuation, legal, and other required due diligence. No lender can responsibly promise the same closing timeline for every transaction.

What to Expect During a Yieldi Closing

Why Property-Type Flexibility Matters

Borrowers rarely approach a bridge lender because their transaction is completely standard.

Often there is something about the property, timing, structure, or business plan that does not fit conventional financing today.

The borrower may have a strong asset but need to close quickly.

The property may be mid-renovation.

The project may require construction funding.

The asset class may fall outside a bank’s current appetite.

Or the borrower may simply need temporary financing before moving into a permanent loan.

A private lender that understands multiple property types can evaluate the actual economics of the transaction instead of trying to force every deal into the same lending box.

Final Thoughts

Private bridge lending extends well beyond single-family fix-and-flip loans.

Yieldi finances residential and commercial investment properties as well as selected specialty assets, with loan structures built around the property, borrower, leverage, and repayment strategy.

Most transactions are designed around relatively conservative leverage and short terms, but each loan is evaluated individually.

For borrowers, that means a wider range of real estate can potentially qualify for financing.

The starting question is not simply, “What type of property is it?”

It is whether the asset and the business plan support a sound loan.

All loans are business-purpose loans and are subject to underwriting and approval. Property eligibility, leverage, terms, pricing, and closing timelines vary by transaction.

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