How we make money: The Business Funding Club is a referral service, not a lender and not a broker. We refer businesses that ask for capital to ROK Financial. ROK and the lenders it matches you with make every funding decision. ROK pays us when a business we refer receives funding. It is free to you, and nothing here is an offer of credit. Read the full disclosure.

Illustration of rental townhomes, one renovated and one under repair

Financing types

A rental or a renovation is a business. The loan is treated like one.

Investment property loans finance residential property you buy to rent, lease or renovate, not a home you live in. The Business Funding Club refers you to ROK Financial. ROK and the lenders it matches you with review every request and make every funding decision.

Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.

By Marcus L. Barber, Publisher · Reviewed by Marcus before publishing · Updated · How we write and check facts

What it is

An investment property loan is used to buy a property that will produce income, typically to renovate and rent out. It is for property others live in through renting, leasing or vacation use, not your own home[1]. Under federal Truth in Lending rules, credit to buy, improve or maintain rental property that is not owner-occupied is treated as business credit[2]. The consumer disclosures and protections that come with a home mortgage generally don't apply, so you have to read the terms yourself.

Where it fits

  • Buying a single-family or small multifamily property to rent out.
  • Buying a property to renovate and sell, with a budget and a contractor lined up.
  • Investors with a track record. ROK lists prior experience with successful residential investment projects as a requirement[1].
  • Refinancing a rental once the renovation is done and it's leased.

When it’s the wrong tool

  • A home you will live in. That's a consumer mortgage, with different rules[2].
  • A first project with no experience, no budget and no exit plan.
  • A renovation budget with no cushion. Overruns and slow sales come out of your pocket while payments continue.
  • Offices, shops or warehouses. See commercial real estate financing.

Ask before you sign

  • Is this a short-term loan with a balloon at the end? What's my plan if the property hasn't sold or refinanced by then?
  • How are renovation funds released: up front, or in draws after inspections? Who pays for inspections?
  • Is interest charged on the full loan amount from the start, or only on renovation funds once they're drawn?
  • What are the total closing costs and lender fees, in dollars?
  • Is there a prepayment penalty if I sell or refinance early?
  • Does the lender lend to my LLC, and does it require a personal guarantee?

Rental or renovation

Most investment property loans serve one of two plans. A rental loan is weighed largely on the property: its value, and whether the rent covers the payment and costs. A renovation loan is weighed on the purchase price, the scope of work, the budget, and your plan to sell or refinance. Renovation money is often released in stages as work is completed and inspected.

SBA programs generally don't fill this role. The 504 program excludes investment in rental real estate[3], and SBA describes a general rule against financing investment property, with a limited Builders CAPLine exception for small contractors building or renovating for resale[4].

Why business-purpose rules matter

Because rental property that isn't owner-occupied is treated as business credit under Truth in Lending rules[2], you won't get the standard consumer mortgage disclosures. California's commercial financing disclosure law also does not cover financing secured by real property[5].

No standard form to lean on

Ask for the total dollar cost, every fee, the payment schedule, any balloon, the draw process and the prepayment terms in writing. Have your own attorney or accountant read the note before you sign.

What ROK lists for this product

ROK lists prior experience with successful residential investment projects and a minimum property value of $250,000, and says the down payment depends on credit, debt-to-income, the loan program and the property type[1]. ROK's commercial real estate page also lists fix-and-flip loans[6]. ROK's general application lists at least 4 months in business and $10,000 or more in monthly gross sales ($120,000 a year)[7]. Ask how those apply if you invest through a new LLC. ROK and its lenders review every request and make every funding decision. The Club does not.

Lenders commonly review the purchase contract, a scope of work and renovation budget, your record of past projects, entity documents, bank statements showing reserves, and for rentals, the leases.

Industries where it comes up

ROK Financial lists this product on its own site. Read ROK’s page

Common questions

Can I use an investment property loan for a place I'll live in part of the year?

Be careful. Under Truth in Lending rules, if you expect to occupy the property for more than 14 days in the coming year, it can't be treated as non-owner-occupied under the rental property rule[2]. That changes which rules apply. Tell the lender exactly how you'll use the property.

Can I borrow in my LLC's name?

Many investors hold property in an LLC, and many investment lenders lend to entities. Ask whether the lender lends to your LLC, whether it needs a personal guarantee from the owners, and what entity documents it wants. A new LLC may be reviewed largely on its owners' experience and finances.

Is this the same as a fix-and-flip loan?

Fix-and-flip is one use: buy, renovate, sell. Investment property loans also cover buying to rent and refinancing a finished rental. ROK lists fix-and-flip loans on its commercial real estate page[6] and renovate-to-rent loans on its investment property page[1]. Tell ROK which plan you have, since the documents differ.

What will ROK want to see?

Expect to share the purchase contract, a renovation budget and scope of work, a summary of past projects, entity documents and bank statements showing reserves. ROK lists prior investment experience and a minimum property value for this product[1]. ROK and its lenders decide what they need.

Does it cost anything to apply through The Business Funding Club?

No. The Business Funding Club is a free referral club, not a lender or a broker. We refer your request to ROK Financial. ROK and the lenders it matches you with review it and make the decision. ROK pays Digital Solomon when a referred business is funded. You never pay the Club anything, and you don't have to accept any offer.

Sources

  1. Residential Investment Property Loans For Your Business ROK Financial, checked October 16, 2026
  2. Comment for 1026.3: Exempt Transactions (Regulation Z) Consumer Financial Protection Bureau, checked October 16, 2026
  3. 504 loans U.S. Small Business Administration, checked October 16, 2026
  4. SBA lender resources: Partnering with SBA loan programs U.S. Small Business Administration, checked October 16, 2026
  5. SB-1235 Commercial financing: disclosures (bill text) California Legislative Information, checked October 16, 2026
  6. Commercial Real Estate Financing ROK Financial, checked October 16, 2026
  7. Business Financing application (ROK Financial partner page) ROK Financial, checked October 16, 2026

Before you start

What ROK looks for.

Stated plainly so you don’t spend time on a form that isn’t built for your business yet. These are the minimums ROK lists on its partner application. Meeting them is the starting line, not a decision.

  • 4 monthsminimum time in business
  • $10,000minimum monthly gross sales
  • U.S.based and operating

Credit history is one input among several. ROK reviews the whole picture: revenue, deposits, time in business, and what the money is for. What to have ready.

Start your application

A referral club, free to apply. ROK Financial and its lenders review every request and make all funding decisions. How we’re compensated.

Prefer to go straight to the funder? You can apply on ROK's own site. It carries our referral ID.