How Investors Are Closing Deals with Little or No Bank Debt in Today’s High-Rate Environment
Banks are stuck at 55–65% LTV, 1.35–1.50x DSCR, and 150–200 bps over SOFR with full recourse. Meanwhile, $1.9 trillion in CRE debt matures by 2029 — most of it written at 3–4% rates and 75–80% leverage.
The winners aren’t waiting for rate cuts. They’re stacking the 11 strategies below to close deals today.
20–30% down, 5.75–7.25% interest, 7–15 year term, often interest-only. Sellers love the tax deferral via installment sales.
Buy subject to the existing low-rate loan and wrap a second note. Mitigate due-on-sale with land trusts and servicer approval.
Control the asset 7–10 years, keep 100% of rent increases and expense savings. Option strike = today’s price + 3–5% escalator.
New funds cover purchase + capex + closing costs at 11–14% for 12–24 months — perfect bridge to refi.
Senior (60–65%) + Mezz (15–20%) + Pref equity (10–15%) → 90–95% leverage, often non-recourse above senior.
Fast-track EB-5 + final OZ basis step-up = nearly free equity for qualified projects.
Passive 6.5–8% cash-on-cash with zero management and full tax deferral.
Sell at 95–100% value, lease back 15–20 years absolute NNN. Medical, manufacturing, and franchise owners are doing this weekly.
Raise $5M–$50M in 30–60 days from accredited investors with clean waterfalls and SEC compliance.
Billions still exist at 2.65–4.10% (Fannie, Freddie, CMBS). The equity boot is often the only cash needed.
Landowner contributes dirt, sponsor brings capital and expertise — powers most new industrial parks.
Industrial Stack: 62% assumable Freddie @ 3.55% + 18% seller second + 15% mezz + 5% cash → 100% financed
Sale-Leaseback + Syndication: 1031 buyer + 15-yr NNN lease + pref equity layer → seller walks tax-efficiently
| Risk | Mitigation |
|---|---|
| Due-on-sale | Land trusts + servicer pre-approval |
| Recourse creep | Negotiate non-recourse mezz/pref |
| Rate spike | Fixed seller paper + caps |
| NOI shortfall | Stress-test 150–200 bps higher |
| Goal | Best Stack | Cash Needed |
|---|---|---|
| Zero–10% cash | Master lease + JV or 100% fund | 0–10% |
| Lowest rate | Assumable + seller second | 10–25% |
| Non-recourse | Pref equity + mezz | 5–20% |
| Fast close | Hard money + seller carry | 0–15% |
| Tax deferral | 1031 DST + OZ | 0–10% |
100% Financing Funds: Who’s Lending & How to Qualify
Yes — master leases, subject-to, JV equity, and 100% funds make it routine.
Yes, when recorded properly with title insurance and cross-default language.
Higher NOI = lower risk = better terms everywhere. Full NOI guide.
Yes — as a bridge to stabilization and refi.
It replaces bank debt with accredited equity and pushes leverage to 90%+.
Download the free 2026 Creative Financing Cheat Sheet (PDF with all 11 strategies, decision matrix, and current term sheets).
Cara holds esteemed certifications as a negotiation expert and a Luxury Home Marketing Specialist, showcasing her mastery in the art of deal-making and her profound understanding of the high-end property market. With a strategic approach, she harnesses the power of cutting-edge digital technology, employing an array of sophisticated tactics in real estate sales and marketing. This enables her to effectively showcase properties, engage potential buyers, and secure optimal outcomes in the dynamic real estate landscape.
