Yes, Coastal Funding is a private lender. They specialize in direct, short-term and long-term private financing for real estate investors.

• Loan Programs: Fix & Flip, Ground-Up Construction, Bridge, and DSCR loans.

• Lending Footprint: Nationwide across 40 states.

• Loan Details: Focuses on business-purpose real estate loans ranging from short-term bridge debt to 30-year DSCR rental financing.

Give me some Pros and Cons

Pros

• Speed and Efficiency: Terms sheets are delivered within 24 hours, with closing timelines as fast as 7 to 10 days.

• Flexible Qualification: DSCR loans qualify based on property cash flow (minimum 1.0x DSCR) rather than personal tax returns or income documents.

• High Leverage: Offers high Loan-to-Cost ratios, including up to 92.5% LTC on Fix & Flip projects (covering up to 100% of rehab budgets in 72-hour draw reimbursements).

• No Prepayment Penalties: Short-term bridge and flip loans carry no exit penalties if projects wrap up early.

• Streamlined Underwriting: Business-purpose focus eliminates hard credit pulls during the initial quote phase and bypasses consumer mortgage friction.

Cons

• Higher Interest Rates: Rates for short-term bridge and flip financing range from 8.50% to 11.99%, significantly higher than traditional bank financing.

• Upfront Points and Fees: Bridge/Flip term sheets include loan origination points (e.g., 2.00 points) and closing fees.

• Restricted Footprint & Scope: Available only in 40 states and exclusively for business-purpose real estate investments (no primary or secondary residential consumer loans).

• Draw-Based Construction Costs: Rehab and construction funds are disbursed on a reimbursement basis following milestone inspections, requiring upfront out-of-pocket capital from the borrower.