Direct Answer
Real estate investors operating an active business entity can qualify for MCA based on business bank deposits: rental income, management fees, commissions, or flip proceeds. This is working capital for operations (contractor float, overhead, carrying costs), not property acquisition financing. No real estate collateral required. Funding timing is set by the funding provider once your file is reviewed.
Contents
Which Real Estate Business Types Qualify
| Real Estate Business Type | Qualifies? | Revenue Source for MCA |
|---|---|---|
| Fix-and-flip operator (active) | Yes | Sale proceeds, contractor payments received |
| Rental property LLC (active) | Yes | Monthly rent deposits to business account |
| Property management company | Yes | Management fees, leasing commissions |
| Short-term rental (Airbnb/VRBO) | Yes | Payout deposits via Stripe/PayPal to business account |
| Real estate agent / broker | Yes | Commission income, brokerage draws |
| Wholesaler | Yes | Assignment fees to business account |
| Passive investor (no active operations) | No | No recurring business revenue to underwrite |
| Personal rental income (Schedule E only) | Case by case | Must show business account with regular deposits |
MCA vs. Hard Money Loans: Key Differences
Hard Money Loan
- Asset-secured: property is collateral
- LTV drives loan amount (65%-75% typical)
- Appraisal or BPO required
- Used for property acquisition and rehab
- Rates: 10%-15% annualized + points
- Lender can foreclose on the property
- Closing takes 5-10 business days
Merchant Cash Advance
- Revenue-secured: based on bank deposits
- Advance amount based on monthly revenue
- No appraisal, no LTV math
- Used for working capital and operations
- Factor rates: 1.18-1.49 total cost
- No real estate lien placed
- Funding timing is set by the funding provider after review
What Real Estate Investors Use Working Capital For
- Contractor float: Pay subs and suppliers before the draw schedule releases funds from your hard money lender
- Carrying costs: Property taxes, insurance, utilities, HOA while a flip is in rehab and not yet sold
- Marketing and lead generation: Direct mail, Google PPC, Driving for Dollars tools, investor CRM subscriptions
- Earnest money deposit: Tie up a deal under contract while hard money financing is secured
- Payroll for W-2 employees: Project managers, acquisitions coordinators, property managers
- Renovation cost overruns: Unexpected structural issues, remediation, permit delays that exceed budget
- Insurance deductibles: Bridge until insurance claim pays out
- Tenant acquisition: Security deposit advance, leasing commissions, unit turns between tenants
Important: MCA is not appropriate for property acquisition. The advance amount ($10K-$500K) is working capital, not a purchase price, and the holdback repayment structure is designed for businesses with recurring daily revenue, not investors waiting 6-12 months for a flip to close. Use hard money, private money, or DSCR loans for property purchases.
Funding Amounts by Real Estate Business Profile
| Business Profile | Avg Monthly Revenue | Typical MCA Range |
|---|---|---|
| Solo agent / 1-2 flips/year | $10K-$30K | $7K-$37K |
| Active flipper (3-6 flips/year) | $30K-$80K | $22K-$100K |
| Rental portfolio (10-30 units) | $25K-$75K | $18K-$93K |
| Property management company | $40K-$150K | $30K-$187K |
| Short-term rental (5+ properties) | $30K-$120K | $22K-$150K |
| Multi-strategy operator | $100K+ | $75K-$500K |
Qualification Requirements
- Business entity: LLC, S-corp, or C-corp with an active EIN and business bank account
- Time in business: 6+ months of active operations
- Monthly revenue: $4,000-$6,000+ in average monthly business bank deposits
- Credit score: 500+ personal FICO (owner/operator)
- No open bankruptcy: Discharged prior BK acceptable with 12+ months post-discharge
- Consistent deposits: Revenue should be relatively regular, not all income from a single large transaction per year
Working Capital for Real Estate Operators
Revenue-based funding, no property pledged. $10K-$500K, funding timing set by the funding provider after review.
Apply NowFAQ
- Can real estate investors get a merchant cash advance?
- Real estate investors who operate an active business entity with recurring business income depositing into a business bank account can qualify for MCA. The MCA is based on business revenue: rental income, management fees, flip proceeds, not the real estate itself. Pure passive investors with no business revenue stream are not a fit; active operators with documented monthly deposits qualify.
- Does rental income qualify for MCA?
- Rental income that deposits into a business bank account can qualify. If you own rentals inside an LLC with an active business checking account showing regular rental deposits, that monthly revenue is the basis for MCA underwriting. Rental income flowing to a personal account requires additional documentation to establish business purpose.
- Can I use MCA to fund a real estate deal?
- MCA is not appropriate for property acquisition. It's working capital for business operations: contractor float, carrying costs, marketing, overhead, not property purchase. For deals, use hard money loans, private money, or DSCR loans. MCA and property acquisition financing solve different problems and should not be conflated.
- What real estate business types qualify?
- Fix-and-flip operators, rental portfolio operators (LLC), property management companies, short-term rental operators (Airbnb/VRBO through a business account), real estate agents and brokers, and wholesalers. The key requirement is an active business entity with documented monthly revenue in a business bank account.
- What's the difference between MCA and hard money loans for real estate investors?
- Hard money loans are asset-secured: the property is collateral, LTV determines the loan amount, and the lender can foreclose. MCA is revenue-secured: based on business bank deposits, no real estate collateral, no LTV math, no appraisal. Hard money is typically used to purchase or rehab a specific property. MCA is working capital for business operations: carrying costs, contractor float, marketing, overhead, not property acquisition.