Term: Business Purpose Lending (BPL) 

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An industry phrase used to refer to the business of making loans secured by residential real estate – but only to those borrowers for whom the use of proceeds is for a commercial or business purpose. Commonly included loans are: Fix & Flip Loans (RTL Loans), DSCR Loans, SFR Construction Loans, and Bridge Loans

Also referred to as Business Purpose Loan 

Resources relating to Business Purpose Lending:  

Business Purpose Loans to Individuals Secured by Residential Property
Business Purpose Loans to Individuals Secured by Residential Property

Business Purpose Loans to Individuals Secured by Residential Property

Introduction Business purpose loans to individuals secured by residential property represent a niche, yet significant, segment of the private lending market. These loans differ from traditional owner-occupied dwelling mortgages as …

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Lending, Brokering, or Servicing Licensing Requirements and their Exceptions
Lending, Brokering, or Servicing Licensing Requirements and their Exceptions

Lending, Brokering, or Servicing Licensing Requirements and their Exceptions

Written by Matthew B. Gunter, Esq., Attorney, Lightning Docs Thankfully, only a handful of states require a license to lend or to broker or service a loan, but when a …

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Navigating the Maze of Licensing Rules for Private Lenders: Simplifying Business Purpose Lending Secured by Residential Real Estate
Navigating the Maze of Licensing Rules for Private Lenders: Simplifying Business Purpose Lending Secured by Residential Real Estate

Navigating the Maze of Licensing Rules for Private Lenders: Simplifying Business Purpose Lending Secured by Residential Real Estate

Private lenders provide vital financing options for real estate investors. However, there are numerous myths and misconceptions surrounding the licensing rules for private lenders, specifically in Business Purpose Lending (BPL) …

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