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Commercial Asset-Based Lending for Investment Property
By Jason Taken · Principal, Jaken Finance Group
Asset-based CRE lending — bridge 8.99%–13.5% IO, DSCR 5.75%–10.5%, collateral sizing, LTC/LTV matrix, and exit paths for non-owner-occupied deals.
Commercial investors lose deals when financing is sized on tax returns while the asset is vacant or mid-reposition. Asset-based lending underwrites collateral, scope, and exit — the same lens Jaken Finance Group applies to non-owner-occupied investment property nationwide. Bridge and fix-and-flip run 8.99%–13.5% interest-only; stabilized commercial and multifamily exit to DSCR at 5.75%–10.5% when leases and coverage support permanent debt. This guide explains how asset-based CRE lending works, how Jaken Finance Group products map to asset class, and what to submit for a fundable first pass.
Start with what is an asset-based loan and commercial property loans by asset class.
Jaken Finance Group asset-based lending snapshot — 2026
| Product | Rate band | Collateral focus |
|---|---|---|
| Bridge / fix-and-flip | 8.99%–13.5% IO | ARV, LTC, scope, exit |
| DSCR permanent | 5.75%–10.5% | Stabilized NOI, lease quality |
| Coverage | 50 states | Business-purpose entity closings |
| Term sheet (complete file) | 24–48 hours | Comps + scope in file |
| Close | 7–14 business days | Appraisal paid, conditions cleared |
What is hard money · DSCR hub · Loan process
Asset-based vs traditional commercial lending
| Dimension | Traditional bank / agency | Asset-based (Jaken Finance Group) |
|---|---|---|
| Primary underwriting | Borrower financials, global DSCR | Property value, scope, exit |
| Vacant or distressed | Often decline | Bridge eligible |
| Close timeline | 45–90+ days | 7–14 business days |
| Payment structure | Amortizing | IO on bridge; amortizing DSCR |
| Credit | Strict minimums | Credit-flexible on select programs |
| Best phase | Stabilized, seasoned asset | Acquisition, value-add, lease-up |
Traditional lending wins on rate for turnkey leased assets. Asset-based lending wins on speed and renovation tolerance when the spread between purchase and stabilized value funds the carry — see benefits of hard money for commercial real estate and hard money vs traditional loans.
Jaken Finance Group asset-based product map
Bridge loans
Short-term 8.99%–13.5% IO for acquisition, heavy TI, or lease-up. Sized on LTC and ARV cap with milestone draws tied to inspection. Ideal when the asset cannot pass bank occupancy or DSCR gates yet.
Use cases: vacant retail, multifamily value-add, mixed-use upper-floor conversion, commercial rehab before permanent refi. Details in bridge loans for real estate investors and commercial rehab loans.
Hard money / fix-and-flip structure
Same rate band, standardized for shorter holds — purchase plus documented rehab, exit by sale or refi within 6–18 months on qualified files. Collateral-first approval; experience affects leverage and pricing, not necessarily eligibility.
DSCR permanent
When executed leases or credible rent roll support DSCR ≥1.0 (program-specific), permanent debt at 5.75%–10.5% replaces IO carry. LTV caps up to 85% purchase, 80% cash-out, 85% rate-and-term on select qualified markets — confirm market and asset class at submission.
Cash-out refinance
Tap equity in stabilized non-owner-occupied holdings for the next acquisition. Seasoning, vesting, and rent documentation must align with cash-out requirements before you model proceeds.
Asset-class matrix — sizing expectations
| Asset class | Bridge IO fit | DSCR fit | Underwriting emphasis |
|---|---|---|---|
| Retail strip / NNN | Moderate — tenant rollover | Strong when leased | TI allowance in scope |
| Small multifamily (2–20 units) | Strong for value-add | Strong post-stabilization | Vacancy in rent roll |
| Mixed-use | Strong on vacant commercial | Strong with executed leases | Zoning and use at refi |
| Office / medical | Selective — long lease-up | Strong with credit tenants | Carry through vacancy |
| Industrial / warehouse | Moderate — shell condition | Strong with NNN lease | Environmental flags early |
Vacant or distressed assets stay on bridge until occupancy and coverage support DSCR sizing — DSCR loan for investment property.
Sizing mechanics — LTC, LTV, ARV
Bridge / value-add
- LTC (loan-to-cost) — often 70%–90% of purchase + documented rehab on qualified files
- ARV cap — total debt typically 65%–75% of after-repair or stabilized value
- Contingency — 10%–15% on scope; thin budgets slow draws
- Cross-collateral — available on select portfolios; confirm partial release before bind
Model in fix and flip calculator using ARV minus ~8% sale costs on flip exits, or market rent minus vacancy on hold paths.
DSCR permanent
Permanent sizing requires:
- Executed leases or rent roll supporting program DSCR
- LTV within market caps for asset class
- Entity vesting consistent from bridge close through refi
Mismatch between personal name and LLC at refi can reset seasoning on some programs — document vesting on day one.
Worked example — neighborhood retail reposition
Scenario: 3,800 SF retail, $540,000 purchase, $95,000 TI, 7-month hold to NNN lease.
| Line item | Amount |
|---|---|
| Purchase | $540,000 |
| TI / reposition | $95,000 |
| All-in cost | $635,000 |
| Stabilized value (cap 8% on $58K NOI) | ~$725,000 |
| Bridge at 75% LTC | ~$476,000 |
| IO at 10.25% | ~$4,066/mo |
| 7-month carry | ~$28,462 |
Exit A — sale: Stabilized value $725,000 less 8% costs ≈ $667,000 net — compare to all-in plus carry and points.
Exit B — DSCR refi: At 7.0% on 75% LTV ≈ $544,000 debt; confirm lease execution and seasoning before bridge close.
Document both exits at submission — underwriters slow files with a single optimistic sale path and no lease-up plan.
Eligibility — what asset-based underwriters verify
| Requirement | Detail |
|---|---|
| Business purpose | Non-owner-occupied investment use |
| Entity | LLC or appropriate vesting with OA and EIN |
| Collateral | Appraisal or documented comps; scope with bids if value-add |
| Exit | Sale timeline or DSCR refi with target LTV and coverage |
| Insurance | Commercial landlord / investor policy — not owner-occupied HO-3 |
| Reserves | Carry and completion liquidity per file |
Credit-flexible programs exist — collateral and exit still drive approval. See 500 credit score hard money and asset-based hard money lenders.
Timeline — term sheet to first draw
| Milestone | Typical timing |
|---|---|
| Complete file submitted | Day 0 |
| Term sheet | 24–48 hours |
| Appraisal ordered / paid | Day 1–2 |
| Close | 7–14 business days |
| Draw 1 (post-inspection) | 3–5 business days |
Delays trace to incomplete entity docs, scope without bids, environmental flags, or appraiser access — prep with checklist — loan proposals.
When asset-based beats bank — decision table
| Scenario | Asset-based bridge 8.99%–13.5% | Bank / DSCR 5.75%–10.5% |
|---|---|---|
| Vacant or distressed CRE | Yes | Unlikely until stabilized |
| Auction / off-market speed | Yes | Rare inside 30 days |
| Heavy TI / reposition | Yes | Scope often kills approval |
| Turnkey leased NNN | No | Yes |
| 10+ year hold | No | Yes |
Compare down payment expectations in commercial real estate loan down payment requirements.
Portfolio strategy — bridge to DSCR sequence
Experienced sponsors treat asset-based lending as a sequence:
- Bridge acquires and repositions — IO carry is a line item in the pro forma
- Lease-up — track economic occupancy monthly
- DSCR permanent — lowers carry; enables cash-out for next deal
- Repeat — cross-collateral only when release terms are documented upfront
Carrying two IO bridges without staggered exits burns spread in 2026 rate bands — model dual-exit on every file. Read succeeding in commercial CRE financing for asset-class depth.
Application checklist
Before submit scenario:
| Document | Purpose |
|---|---|
| Purchase contract or LOI | Price, close date, assignment |
| Sold comps or rent roll | Collateral / NOI anchor |
| Scope + contractor bids | LTC sizing, draw schedule |
| Entity docs | LLC OA, EIN, good standing |
| Insurance quote | Investor / commercial landlord policy |
| Exit memo | Sale or DSCR refi with target metrics |
Related resources
- Potential commercial real estate financing
- Navigating commercial CRE financing
- Hard money loan statistics 2026
- Pre-qualify · (833) 264-7776
Commercial Asset-Based Lending for Investment Property — next step (2026)
Model flip spread after 8% sale costs and DSCR at 1.0+ before you lock scope — dual-exit files survive 2026 carry pressure.
Submit scenario · Pre-qualify · (833) 264-7776.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. Closing times may be delayed due to appraiser property access . All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.
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Jaken Finance Group, 2300 Barrington Road, Suite 400, Hoffman Estates, IL 60196