Capital Markets

Not necessarily. Hard money lenders are often the best option for extremely tight times. But keep in mind that many debt funds can also move quickly, often with better terms and higher loan sizes than hard money programs allow.

If you need a fast close, consider targeting lenders you already have an existing relationship with as using precedents docs will speed up the closing process significantly.

When reaching out, be explicit about your timeline in the outreach email so lenders can self-select based on their capacity to execute.

When multiple lenders independently arrive at the same lower loan amount, that's likely market consensus. The most common cause is that the property's current cash flow doesn't support the requested loan amount at today's interest rates and DSCR requirements.

Most perm lenders require a DSCR of 1.20x–1.35x. If the property's NOI doesn't produce enough coverage at your requested loan amount, lenders will reduce their offer to a number that does pencil. You may want to consider a bridge loan if there is a clear pass to a higher NOI (e.g. lease-up, MTM) . A bridge lender may underwrite to projected stabilized cash flow and provide a higher loan today with a refinance exit later.

It depends on the loan type and property profile, but at the high end of that range you should expect a smaller lender pool and more friction.

For permanent loans, most banks and credit unions target sub 70% LTV. Above 70% is possible but narrows the pool significantly.

For bridge loans, 70–75% LTC is the realistic ceiling in today's market for most deals. Some debt funds advertise up to 80% LTC, but that is generally above the sweetspot.
For construction loans, 80% LTC is effectively unavailable at current market rates. Most lenders are at 60–75% LTC for construction.

If you're not getting the leverage you need, the honest market signal is that lenders want more equity in the deal. Adjusting your request, or finding an equity partner to bridge the gap, is often the more practical path than continuing to search for a lender willing to stretch.

Non-recourse financing significantly limits your lender pool. Banks and credit unions almost universally require recourse, it's a standard condition of their commercial lending programs, not a negotiating point.

Non-recourse options come primarily from:
• Debt funds: the main source of non-recourse senior debt for bridge and light bridge deals
• CMBS lenders: non-recourse is standard for CMBS execution
• Agency lenders (Fannie/Freddie): non-recourse on stabilized multifamily
• Hard money lenders: sometimes non-recourse, but terms are expensive

Hotel financing can be difficult to place and lender passes are common for a few distinct reasons:

1. Franchise flag requirement: most lenders strongly prefer hotels with a franchise flag (Marriott, Hilton, IHG, etc.) over independent or boutique properties. If your hotel is unflagged, a large portion of the lender list will pass on this basis alone.

2. Hotel allocation limits: many lenders manage how much of their portfolio is in hospitality. When they hit their limit, they pause new hotel deals regardless of quality. This is temporary and can reset at the start of a new year.

3. Loan size vs. lender type mismatch: for smaller hotel loans with stable cash flow in strong markets ($5–15M), CMBS through a national bank can be a good option. Local and regional banks may be worth targeting as well.

Low response rates are frustrating, but there are several things within your control that can meaningfully improve engagement:

Send a follow-up email. Response rates on deals often jump significantly after a well-timed follow-up. Don't wait more than 10–14 days before sending one.

Don't attach files to your initial outreach. Large attachments lower email deliverability and can trigger spam filters. Send your initial email without attachments and share documents after a lender expresses interest.

Check your domain health. If a significant number of your emails are bouncing or going unacknowledged, your domain may have a DMARC configuration issue.
Customize your outreach email. Generic emails that read like automation perform worse. Include key details about your deal (loan amount, asset type, market, high-level metrics) and consider highlighting some brief strengths. A short, direct email often outperforms a long one.

The key distinction is whether you are financing vertical construction (building a structure) or horizontal work / land (site development, lot preparation, entitlements). Choose Construction when the financing is primarily for vertical construction, and select the finished Asset Type. Choose Land when financing land acquisition, horizontal construction, lot development, or entitlements/permitting. If financing both horizontal and vertical, generally choose Land and the applicable land subtype. If acquiring land and immediately breaking ground, choose Construction. For SFR/townhome subdivisions, if the financing need is the horizontal lot development, use Land > Lot Development; misclassifying as Construction leads to irrelevant lender matches.

Set up as: Transaction type = Acquisition; Loan type = Land; Asset type = Entitled Land; Land type = Lot Development (for SFR lot creation) or Predevelopment (if not SFR). Even if financing includes acquisition + horizontal work, it is still classified as an acquisition and won't limit lender matches.

Illustrative examples only: Land examples include Predevelopment (entitlements/horizontal work before shovel-ready), Lot Development (horizontal subdivision work to create finished lots), and Land Banking (borrowing against raw land held passively). Construction examples include deals where vertical building is the primary purpose (e.g., MF, hospitality, medical office). If unclear, pick the closest bucket.

Predevelopment = entitlements/permitting/horizontal work needed before shovel-ready. Lot Development = financing horizontal work to create individual SFR/townhome lots (grading, roads, utilities), regardless of whether lots are sold or built on by the sponsor. Land Banking = borrowing against raw land with no active development plan. If unsure, use timeline/end goal: active work implies Predevelopment/Lot Development; passive holding implies Land Banking.

Lev distinguishes entitled vs. unentitled land as separate sub-asset types, but lender matching for unentitled land is inherently limited; very few lenders are open to unentitled land. A short lender list is normal—use outreach to confirm appetite.

Classify covered land plays as Land (not Specialty - Other Specialty). Use Land Banking for long-term holds with no near-term development, Predevelopment for active development plans, Lot Development for residential subdivision work, and Entitled/Unentitled based on current entitlement status. Future use and timeline determine subtype.

Use Land - Predevelopment, not bridge-acquisition. Bridge-acquisition for a data center land play confuses lenders because the property isn't yet a data center.

Include hard costs, soft costs, and other development costs in Project Costs. Enter land costs separately in the Land Cost field. Keeping land separate ensures accurate total cost basis and LTC calculations for matching.

Loan Amount should reflect the total requested commitment inclusive of any future funding. For construction, include initial advance + all future draws. For permanent (edge case) with future funding/holdbacks, include those dollars in the total request as well. If LTC looks off, confirm Loan Amount reflects full commitment and that project vs. land costs are entered in the correct fields.

No. Lev does not support selecting multiple capital positions for matching in a single deal; only the primary loan request is used. You can describe additional requests in outreach. Adding other capital sources is informational only and not factored into search. For mezz/pref, use the mezz setup guidance (KB 09) as a workaround.

These fall outside standard lender matching. If submitted, matching will be based on the underlying asset and loan parameters, but suggested lenders won't necessarily reflect lenders active in these structures. You can still reach out to matched lenders and describe the specific need, but Lev can't guarantee a match.

Agriculture lending is outside CRE scope and is typically handled by dedicated ag lending divisions with separate criteria/programs. You can reach out to matched lenders and describe the need (some may help) and search Pulse items for recent lender feedback on this deal type.

Infrastructure financing (energy/utilities/toll roads/pipelines/renewables/cell towers, etc.) may be outside general CRE scope and is underwritten on contracts/PPAs/utility revenue vs. property value/NOI. You can contact matched lenders and describe the need, but Lev can't guarantee a match.

No—working capital/lines of credit are business loans, not CRE. A potential workaround is to contact matched bank lenders for an internal referral to their business lending team.

Usually classify as Industrial - Manufacturing rather than Specialty - Other Specialty. Use a more specific Industrial sub-asset type if it fits; otherwise use Other Specialty. Highlight the property use in lender outreach due to potential environmental diligence; lender matching may still not reflect true infrastructure/specialty appetite.

Select the post-conversion (end use) asset type (e.g., hotel-to-data-center = Data Center). For conversion deals, use Heavy Bridge. Lenders care about what the property will become; choosing current use leads to mismatched lenders.

Select SFR - Build to Rent (shown as "For Rent Housing" under SFR) to match with BTR lenders.

For truly unique specialty assets, choose Other Specialty. Lev's Capital Markets team can manually add SBA specialist lenders. Also reach out to local/regional banks, which often have direct SBA relationships.

Set the deal up as Retail - Unanchored Center to match broadly with retail-serving banks/lenders, then identify tenant-friendly lenders through outreach. In outreach, highlight strengths (tenancy history, remaining term, historical occupancy, market demand). Aggressive cash-out/leverage may require reduced proceeds or more equity.

Industrial Outdoor Storage (IOS) is most accurate but has a smaller lender pool; Industrial Warehouse is broader. Use IOS for precision and niche IOS lenders; use Industrial Warehouse for wider reach if you're OK filtering in outreach.

Use Specialty > Gas Station (not STNL Retail). This surfaces gas-station-specific lenders.

If the property is not stabilized and not generating income, use bridge. Permanent loans are for stabilized, income-producing properties. If there's no income and work is still needed (renovations/lease-up/etc.), it's bridge; if stabilized with tenants and consistent income, it's permanent. Small check sizes often fit local banks/credit unions.

Use sub-asset type Residential Condo. Enter sellout value as stabilized value. NOI fields don't apply—enter a placeholder; it won't affect matches. Transaction type depends on deal (construction vs. conversion). This is a known UX gap but the workaround matches to the right lenders.

Lev only matches lenders that cover all states listed; more states = fewer matches. Best strategy is splitting the portfolio into geographic clusters and creating separate deals, or keep one deal and specify in outreach that lenders can bid on a subset.

Common causes include loan size outside lender ranges, niche asset class, multi-state portfolio constraints, incorrect setup (asset/loan/transaction type), or restrictive filters hiding matches. Widen pool by verifying configuration, checking filters, considering restructuring (split portfolios/adjust request), and using outreach to convey nuances.

Most commonly, filters are hiding them. Check lender type filters (Banks, LifeCos, Agency, Debt Funds, CMBS, Credit Unions). Other hard filters include loan size min/max, asset location footprint, sponsor location footprint (common for regional banks), and loan type selection. If filters are correct, it may be due to lender-set hard filters.

Many community/regional banks require the borrower to be within their footprint; out-of-state sponsors narrow the pool. Focus outreach on national lenders and debt funds, which are less sensitive to sponsor geography.

Best practices: choose the correct (and most specific) asset/sub-asset type; choose the correct loan type (bridge/permanent/construction/land) based on the financing purpose; for conversions choose post-conversion asset type; for land choose the correct land subtype; check lender type filters so you don't exclude key categories; for mixed use choose the dominant income stream; and avoid accidentally narrowing the list with filters or misclassification.

Because of federal restrictions, many national banks/institutional lenders can't participate. Focus outreach on local/community banks. Ensure deal details are accurate and clarify the cannabis relationship (facility vs. cannabis tenant), since this affects lender appetite.

LifeCos offer best rates but are selective: top-tier sponsors, high-quality real estate, low leverage, strong markets/collateral, stabilized assets, and typically deal sizes above ~$10M. They often work via correspondent brokers and may not engage unknown borrowers/brokers. Improve response by relationship-building outreach first, calls/follow-ups, strong deal packages (Lev Memo), and long-term relationship development.

Second lien requests aren't supported for matching; Lev can't filter for second lien lenders, so results won't be useful. Mezz is supported, but checks under $1M usually have limited lender pools. Workaround: run as a senior loan at the full capital stack amount to match lenders for the asset type, then specify second lien/mezz details in outreach.

Use "Input Loan Request Amount" for the simplest setup. If using Total Capitalization, pref equity is total capitalization minus first mortgage amount; changing either changes pref amount. Ensure request type is Pref Equity (not First Mortgage) and verify total stack matches deal parameters. If numbers look off, start over using the loan request amount workflow.

You can, but there's no way to specify leasehold vs. fee simple in the setup, so you may match lenders that don't do leasehold. Set up normally, then clearly state leasehold in outreach so non-fits self-select out. Expect a smaller response pool and check Pulse items for recent insights.

Co-op deals don't map cleanly because collateral is shares rather than real property, so lender search can't filter for this use upfront.

In the Market tab, filter Recent Terms by loan type. Select Heavy Bridge and/or Light Bridge to see recent term data.

Early lease renewals help. Free rent/concessions are fine if Net Effective Rent covers debt payments. Larger loan requests can increase the lender pool due to lender minimums; don't be unnecessarily conservative on leverage.

Enter it as a bridge deal when setting up the deal in Lev. Then, in your outreach email to lenders, call out that it is actually a bridge-to-perm so they can underwrite the take-out alongside the initial bridge financing.

Enter it as a construction deal when setting up the deal in Lev. Then, in your outreach email to lenders, call out that it is actually a construction-to-perm so they can evaluate both the construction loan and the permanent take-out together.