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Small Business Loans for Real Estate Agents: Best 6 Options

As a real estate agent, you may need to get business financing for a new business location or launch a new marketing initiative. You may also need to have money available on-demand in case of any unexpected expenses.

Small Business Loans for Real Estate Agents
Tetiana Sitiugina-Babiuk
Financial Sector Specialist and Content Strategist

Reviewed by: Jen Hubley Luckwaldt, Content Writer and Editor

Fact Checked by: Thomas Brock, Financial Analyst and Accountant

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Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

Volatile economies, seasonal variations, and seesawing mortgage rates mean perpetual challenges, even for the most skilled real estate agent. Closing an offer doesn’t always mean closing the deal, and closing the deal never means instant money. Meanwhile, the business expenses never stop and your mortgage payments are due every month

Loans for real estate agents can help you maintain your business during tough times. Whether you need help covering operating expenses, expanding your business, or even buying a new office, the right small business loan can help.

Small Business Loans for Real Estate Agents: Best 6 Options

While a small business loan for real estate agents may be used for a number of purposes, choosing the right financial product ultimately boils down to a few factors

In this review, our experts highlight the rates, fees and terms of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a rating methodology you can use to select the best option for your needs.

 

Best Small Business Loans for Real Estate Agents - Full Overview

Best Overall
4.2

American Express Business Blueprint™ - Best for Real Estate Business Lines of Credit

4.2
Average Monthly Revenue
At least $3,000
Min. Time in Business
12 months
Min. Credit Score
640
Key Features
  • Monthly fee: 3-9% for 6 month loans, 6-18% for 12-month loans, 9-27% for 18-month loans
  • Loan amounts ranging from $2,000 to $250,000
  • No prepayment penalties and no origination fees
  • Convenient application process
Pros & Cons
  • Straightforward online application
  • Debit card provided to access funds
  • Friendly and accessible customer service
  • Funds can be sent directly to PayPal account
  • Complicated fee structure
  • No prepayment incentive
Overview

American Express® Business Line of Credit can help you acquire short-term funding to support daily operational expenses like payroll. American Express Business Line of Credit offers an automated application process, a straightforward loan application, and accessible customer service. However, you may wind up on the hook for higher interest payments. Should you qualify to apply, you can enjoy straightforward fund disbursement, and reasonable credit score requirements.

 

Main Features
A business line of credit from American Express ranges from $2,000 to $250,000. Repayment periods are 6, 12, or 18 months. While traditional business loans charge an interest rate, American Express offers a slightly different fee structure. Borrowers pay a monthly fee based in part on term length. Total estimated monthly fees by term are as follows: 6-month term: 3-9%, 12-month term: 6-18%, 18-month term: 9-27%. Borrowers also pay late payment and maintenance fees. However, American Express doesn’t charge origination or prepayment fees.

If you’re looking for top-notch customer service and fast processing times, American Express Business Line of Credit is a viable option for a business line of credit. Just keep in mind that their fee structure requires a little figuring to compare its products with competitors.
nationalfunding
4.1

National Funding - Best for Working Capital and Payroll Expenses

4.1
Min. Annual Revenue
$250,000
Min. Time in Business
6 months
Min. Credit Score
600
Key Features
  • Borrow up to $500,000
  • Fast funding
  • Early payment discounts
  • Loan Repayment 2-5 years
  • Factor rate From 1.10
Pros & Cons
  • Lenient qualification requirements
  • Fast turnaround times
  • Easy application process
  • Low credit scores are welcome
  • No collateral needed
  • Early payment discounts
  • Rates can be expensive
  • Some additional fees apply
Overview

If you have recently started your real estate business and are still in the process of building a good credit history, National Funding is just the right lender for you. Its working capital loans come with lower eligibility criteria – and, correspondingly,  higher-than-average interest rates.

 

Main Features
The bad credit business loans can range between $5,000 and $500,000 in value and have a term length between 6 and 24 months. However, National Funding has high approval rates and welcomes applicants with relatively low credit scores. To qualify, you would need to be in business for at least 6 months, make at least $250,000 in annual income, and have at least $1,500 in the bank.

National Funding is a great resource for real estate agents with below-average credit scores. While you do need to make at least $250,000 annually in order to qualify for their loan, the credit score requirements are fair, the application process requires little documentation, and the fund disbursement is quick.
Lendzi logo
4

Lendzi - Best for Real Estate SBA Loans

4
Min. Annual Revenue
$150,000
Min. Time in Business
2 years
Min. Credit Score
680
Key Features
  • Borrow up to $400,000
  • Competitive starting rates on most products
  • Bad credit accepted
  • See your options without hurting your credit
  • Flexible terms: 3 to 15 months
  • Excellent customer reviews on independent review sites
Pros & Cons
  • Many loans and lenders to choose from
  • Competitive rates and fees
  • Excellent customer service
  • Large loan amounts available
  • Funding times may be long for SBA loans
  • Income requirements may be high
Overview

Lendzi is a direct lender and a lending marketplace partnering with more than 75 additional lenders. This makes them an excellent choice for comparing options and being able to choose the best loan for your real estate business. While the lender offers seven types of small business loans, we recommend their SBA 7(a) loan due to its competitive rates and large loan amounts.

 

Main Features
An SBA loan is backed by the Small Business Administration and, because of that, offers some of the best rates available for small business funding. They are a bit trickier to qualify for and the funding takes longer than with other types of small business loans, but if you have the time, you could save thousands over the course of your loan. SBA loans typically range from $5,000 to $5 million, with terms up to 25 years. Average rates are just 6.5%. To qualify, you should have a business history of two years, a minimum credit score of 680, and $150,000 or more in annual revenue. If you don’t meet these qualifications, we highly suggest looking into Lendzi’s other business lending options.

Lendzi is an excellent lender to work with regardless of credit score, time in business, or industry your business is in. They have over 2,000 5-star reviews and a representative walks you through the entire process. SBA loans come with the best interest rates, but Lendzi offers many loan products that real estate agents can use to enhance their business.
biz2credit review
4

Biz2Credit - Best for Commercial Real Estate

4
Min. Annual Revenue
$250,000
Min. Time in Business
18 months
Min. Credit Score
660
Key Features
  • Borrow up to $2 million
  • Loan Repayment 12-36 months terms
  • Variable APR depending on the applicant
  • Multiple loan types available
  • Funding in 72 hours
  • Soft credit pull
Pros & Cons
  • Fast and easy application process
  • Funding as fast as 48 hours after approval
  • High borrowing limits (up to $6 million)
  • Requires 660+ credit score
  • High annual revenue requirements
  • Not all fees are disclosed up front
Overview

Thinking of expanding your real estate business or opening a new office location? Biz2Credit might have just the right financial product for you. The lender offers a variety of small business loans, including working capital, term loans, and commercial real estate loans. Their CRE loan can be used to purchase commercial properties, making it a great option if you are expanding your real estate business or shopping for new premises.

 

Main Features
Biz2Credit’s commercial real estate loans allow you to borrow up to $6 million for the purpose of funding commercial real estate acquisitions. Here, the term length can vary between 12 and 36 months, with monthly and interest-only repayment options. The interest rates are reasonable, with APRs starting at 10.00%. However, the qualification requirements for Biz2Credit loans are somewhat strict, as compared to other online lenders: you need to have a minimum credit score of 660, with a minimum annual revenue of $250,000.

Biz2Credit is a great choice for agents with an established real estate business, looking to expand further by acquiring commercial properties. While the qualification criteria might be somewhat stringent, the quick online application process and incredibly fast funding make commercial real estate loans from Biz2Credit a great option to consider.
gokapital review
4.1

GoKapital - Best for Investment Property Loans

4.1
Min. Annual Revenue
Not disclosed
Min. Time in Business
Not disclosed
Min. Credit Score
650
Key Features
  • Borrow up to $5 million
  • Loan Terms 2 to 10 years
  • Interest rates start at 25%
  • Wide range of loan offers
  • Simple application process
  • Instant pre-approval
Pros & Cons
  • Easy online application
  • Many loans to choose from
  • Competitive interest rates
  • Excellent customer service
  • Poor credit not accepted on real estate loans
  • Extensive documentation may be required
Overview

GoKapital offers six different types of small business loans that can be used by real estate agents. GoKapital does not exclude certain industries like some lenders do, so this company is worth checking out for that reason alone. However, if you are a real estate agent who’s also an investor, GoKapital offers rental investment property loans up to $50 million. This can help you build up your own real estate investment portfolio while continuing to grow your real estate business.

 

Main Features
GoKapital real estate property loans range from $100,000 to $50 million, with the minimum property value requirement being $150,000. Terms range from five to 30 years, similar to a traditional mortgage. Rates are on the low side starting at 4%, but keep in mind the credit score requirement is on the higher side. To qualify for this type of loan, you need a credit score of 650 or higher and the company prefers you’re an experienced investor. Customer service with GoKapital is excellent, so you can always reach out with questions prior to filling out an application.

GoKapital provides entrepreneurs, including real estate agents, with the funds they need to grow their business and make it successful. Whether you’re needing a working capital loan to pay for marketing expenses or you’re wanting to become a real estate investor yourself, GoKapital can help.
Fundbox review
4.1

Fundbox - Best for Low Interest Rates

4.1
Min. Annual Revenue
$100,000
Min. Time in Business
6 months
Min. Credit Score
600
Key Features
  • Borrow up to $150,000
  • Loan repayment 6-12 months terms
  • Interest rate 4.66% minimum
  • No monthly fees or prepayment penalties
  • Same-day or next-day funding
  • Best for business lines of credit
Pros & Cons
  • Short application process
  • Rapid fund disbursement
  • Low minimum credit score requirement
  • No additional fees apart from interest rate
  • Payments allowed through automatic debiting
  • High interest rates
  • Relatively small loan limit
Overview

If you require a quick lump sum, you can apply for a Fundbox business term loan for real estate agents. The funds can then be used for a one-time purchase - for example, to upgrade your real estate office.

 

Main Features
Fundbox offers convenient term loans up to $150,000, with repayment terms of either 24 or 52 weeks. Even though the loan application process is fairly easy, the rates tend to be high compared to some other online lenders. However, if you prove to Fundbox that you are able to quickly repay the loan, you will be offered more funds at lower rates the next time you apply.

Term loans from Fundbox come with a quick application process, fast approval times, and rapid fund disbursement. Even though the rates might seem high, don’t get discouraged. If you pay off your loan quickly, you will be offered a much better deal the next time around.
bluevine
4

Bluevine - Best for Startup Real Estate Business Loans

4
Min. Annual Revenue
$120,000
Min. Time in Business
6 months
Min. Credit Score
625
Key Features
  • Funding up to $250,000
  • Interest rates as low as 4.8%
  • Loan Repayment 6-12 months terms
  • Quick and simple application
Pros & Cons
  • Streamlined application process
  • Fast fund disbursement
  • Competitive interest rates
  • Person-to-person customer support available
  • Convenient online dashboard
  • Not available in all states
  • Services only available for B2B companies
  • Rates can be high for lower credit scores
Overview

Bluevine is another online lender offering convenient business lines of credit to real estate agents. Lines of credit from Bluevine are known for their fast turnaround; you can complete the online application in a few minutes and receive the funds as quickly as several hours. When considering this type of loan, make sure to thoroughly review Bluevine’s conditions, as it doesn’t provide financing in certain states, such as South Dakota and North Dakota.

 

Main Features
Bluevine offers lines of credit ranging between $5,000 and $250,000, with a repayment period of either 6 or 12 months. The interest payments can get expensive over the full term, so it might be a good idea to try to pay off the loan earlier. Since a line of credit is an unsecured type of loan for real estate agents, it necessitates a higher credit score requirement of 625. In order to qualify, you also need to have annual revenues of at least $120,000 per year and at least 6 months of business history.

Overall, if you are looking for a line of credit to help you finance business expenses or bridge the funding gap from one commission to the other, Bluevine is a great lender to consider.

How to Choose the Best Real Estate Agent Loan

  • Loan features. Take a close look at the specific loan terms, repayment optionality, and loan amounts, and how this applies to your business. For example, if you know you have a significant commission coming in in a few months, make sure the loan amount is sufficient to cover your business expenses until then.
  • Application process. Consider the invasiveness of application information requirements, whether it requires a hard or soft credit check, the loan funding time, and any other distinctively competitive offerings. If you need funding sooner, online lenders typically offer a much faster and easier application process than conventional ones.
  • Interest rates and fees. Find out about the different types of fees associated with taking a small business loan for real estate agents, as well as the minimum and maximum interest rates you may qualify for.
  • Qualification process. What do you need to qualify for the loan? Think about the minimum credit score, annual revenue, and business history requirements.
  • Customer support. Consider accessibility to a live customer support representative, the degree of multi-channel support, and the availability of supplemental information and tools.
  • Online user reviews. To get the most accurate idea about the lender and its financial products, check customer reviews on independent review sites such as Trustpilot.
  • Perks and bonuses. Consider specified service offerings like payment flexibility, advertising transparency, and advanced technology. As a real estate agent, you are likely to receive significant commission amounts at once. Therefore, it is a good idea to look for loans that allow lump sum prepayments.

 

Main Features of The Best Real Estate Agent Loans

CompanyMin. Credit ScoreMin. Time in BusinessMin. RevenueLoan AmountInterest Rate
GoKapital650Not disclosedNot disclosed$100,000 to $5 millionStarting at 4%
Biz2Credit66018 months$250,000$250,000 - $6 millionStarting from 10.00% APR
Lendzi6802 years$150,000$5,000 - $5 million6.5% on average
National Funding6006 months$250,000$5,000 - $500,000Not disclosed
American Express Business Line of Credit64012 monthsAverage monthly revenue: at least $3,000$2,000 - $250,0006-month term: 3-9%; 12-month term: 6-18%; 18-month term: 9-27%
Fundbox6006 months$100,000Up to $150,0008.33% for 24- week term; 18.00% for 52-week term
Bluevine6256 months$120,000$5,000 - $250,000as low as 4.80%

 

How Can a Business Loan Help Real Estate Agents?

As a real estate agent, you might require additional funding for a number of reasons. 

  • Opening a second business location or launch a new marketing initiative: a term loan can help you cover the associated costs. 
  • Having money available on-demand in case of any unexpected expenses: In this case, a business line of credit is the optimal option for you.

Whatever you need help with, funding options for real estate agents are readily available from a variety of online lenders.

 

How Much Does It Cost to Open a Real Estate Agency?

Plan to invest between $10,000 and $50,000 to open a real estate agency – more if you’re looking for franchising opportunities.

Why does it cost so much to get started?

In part, it’s because it may take as long as 12 months to make your first sale. During that time, you’ll have to carry the overhead of office space, staff salary, and other operating expenses before you ever turn a profit.

The first piece of advice a seasoned agent will give you is to ensure you have a safety net. You should also keep your personal assets and work assets separate.

In addition to the money you will have already spent on your education, exams, and licenses, here are a few other categories that you need to consider:

  • Property listing (varies): Depending on what service you're using, they either charge a percentage or a flat fee.
  • Office budget (varies): When you start from zero, you might be working from your bedroom via online channels. However, buyers usually take you more seriously when you meet them face-to-face. You'll have to rent an office and set up a friendly operation, at some point. Here is where you'll need to pay for office space, stationery, utilities, and insurance.
  • Staff expenses ($4,000): We assume that you've hired two brokers who also need to earn commissions.
  • Marketing ($1,500): You can only go as far as your marketing efforts take you. Sure, you can work on word-of-mouth advertising, but you need an online presence, printed branding, and tools for lead generation. All that costs money.

As you can see, you will need quite a large sum as your startup capital. You will also need cash flow to cover the thousands of dollars of monthly expenditures.

 

Loans for Realtors Requirements

Although different lenders will ask you to show specific documents, we will outline a few standard requirements to guide you during preparation. 

You need to have a full review of your business financials, including tax returns, records, cash flow proof for the loan period, credit reports, and a business plan.

Most of the time, small real estate agencies get financed by their owner or partners' funds. This means that personal credit scores and history are also a top priority for lenders. The bank or the credit organization might reject the credit if the personal credit standing isn't good enough.

 

Can Real Estate Agents With Bad Credit Get a Loan?

Real estate agents need working capital financing, which is difficult to obtain from traditional lenders – unless the loan has an SBA guarantee or the agent has exceptional credit. Fortunately, a variety of alternatives are available to real estate agents from non-bank lenders.

Alternative sources generally desire to lend to real estate agents that have been in business for at least a year, have $100,000 of annual revenue, and have credit scores greater than 600. However, newer agents or those with bad credit may qualify for shorter-term financing, which entails borrowing less at slightly higher interest.

 

Conclusion

Now that you have a better idea of the small business loans for real estate agents available on the market, you need to decide what type of funding works best for your needs. If you are planning a major project, consider applying for a term loan. If you need funding to finance smaller ongoing purchases instead, a business line of credit would be a better option for you.

Once you settle on the type of financial product you need, make sure to review the qualification requirements and the features offered by each lender. With careful research and consideration, you will can find the ideal financial product for you and your real estate business.

Tetiana Sitiugina-Babiuk

Written by: Tetiana Sitiugina-Babiuk

Financial Sector Specialist and Content Strategist

Independent writer, content strategist, and financial sector specialist. Tatiana has an extensive experience in working with financial institutions such as Bank of Canada and Risk Management unit at FinDev Canada. She holds an MA in Financial Risk Management from the University of Toronto.

More about me
Jen Hubley Luckwaldt

Reviewed by: Jen Hubley Luckwaldt

Content Writer and Editor

Jen Hubley Luckwaldt is an editor, writer, and content strategist with a focus on personal finance, careers, and DEI. A small business owner for over a decade, Jen helps publications and brands create and optimize B2B and B2C content.

More about me
Thomas Brock

Fact checked by: Thomas Brock

Chartered Financial Analyst (CFA) and a Certified Public Accountant (CPA)

Thomas is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. He currently oversees the investment operation for a $4 billion super-regional insurance carrier, maintaining a dynamic investment policy designed to preserve capital, enhance...

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