Resources & Guides

Private credit represents a fundamental shift in how institutions fund growth and optimize their real estate portfolios. Unlike traditional bank lending, which relies heavily on rigid credit scores and standardized underwriting criteria, private credit focuses on the underlying asset value and cash flow generation potential.

Why Private Credit Matters

• Speed: Most institutional lenders can provide term sheets within 48 hours of receiving complete documentation, with closing timelines of 21-30 days.
• Flexibility: Loan structures are customized around your specific asset, business plan, and timeline—not cookie-cutter products.
• Predictability: Fixed rates and terms locked in at the beginning, with no surprises at the closing table.
• Access: Alternative financing for properties and borrowers who don't fit traditional lending box (non-warrantable condos, land, renovation projects, portfolio refinances).

Private credit is particularly valuable for experienced real estate investors, institutional borrowers, and developers who need capital deployment on their timeline, not the bank's timeline. Whether you're closing a portfolio acquisition, funding a renovation project, or optimizing a portfolio through refinancing, private credit solutions provide the capital and flexibility you need.

Understanding the differences between loan programs is critical to selecting the right financing solution for your investment strategy. Each program is structured to address specific property types, borrower profiles, and investment objectives.

Core Loan Products Available

• Investment Property Loans – Ideal for acquiring multi-unit residential and commercial properties. Focus on cash flow and debt service coverage ratio (DSCR).
• DSCR Rental Loans – Purpose-built for investor portfolios with rental income. Rates based on property cash flow, not personal credit.
• Cash-Out Refinance – Extract equity from existing properties to fund acquisitions, renovations, or capital redeployment. Fast underwriting and competitive rates.
• Non-Warrantable Condo Loans – Financing for condos that don't meet standard mortgage criteria (investor-heavy, commercial first-floor units, etc.).
• Vacant Land Loans – Construction financing for raw land development, with proceeds tied to development milestones.
• Second Mortgages – Junior lien financing to access equity without triggering refinance of primary mortgage.

The right program depends on your asset type, investment timeline, and capital needs. Our loan officers review your situation and recommend the structure that maximizes your returns while minimizing execution risk.

The Debt Service Coverage Ratio (DSCR) is one of the most important metrics in commercial real estate financing. It measures a property's ability to generate enough cash flow to service its debt, and directly impacts loan approval, interest rates, and borrowing capacity.

What DSCR Measures

DSCR is calculated as:

Net Operating Income (NOI) ÷ Annual Debt Service = DSCR

In practical terms, it answers the question: "For every dollar of debt the property must pay annually, how many dollars of net income does it generate?"

DSCR Benchmarks and What They Mean

• DSCR 1.0 or below – Property generates insufficient cash flow to cover debt payments. Seen as higher risk by traditional lenders.
• DSCR 1.0 – 1.25 – Breakeven to modest positive cash flow. Many institutional lenders require minimum 1.15–1.25.
• DSCR 1.25 – 1.5 – Strong cash flow generation with buffer for operating expense fluctuations. Favorable underwriting.
• DSCR 1.5+ – Excellent cash flow generation; property generates significant surplus income beyond debt obligation.

At TRI-GLOBAL EQUITIES, we understand that property performance varies by market cycle, seasonality, and business plan. We work with you to structure financing around your property's actual cash flow and forward-looking income projections, not just historical numbers.