Investing in commercial real estate in 2025 requires creative thinking. Not only are lucrative property deals increasingly hard to find, but they can also be hard to finance. That’s why smart investors are turning to alternative commercial real estate financing options to close deals.

‍

With higher interest rates for longer and economic uncertainty lingering, many CRE professionals face:

• Cash flow constraints as liquidity gets locked up in rising operational costs
• A competitive market where realtors and sellers expect high earnest money deposits and fast deal-closing
• Strict funding eligibility with borrowers demanding strong credit history  and larger down payments

‍

How to find funding and secure deals in this tough environment? Forget about traditional financing. Forward-thinking real estate investors and developers use alternative financing options to quickly and confidently close deals.  

‍

From digital-first lenders to specialized EMD providers, the right partner can mean the difference between landing your next commercial property or watching it slip away. This guide breaks down exactly how alternative commercial real estate financing options work and compares five leading players, so you can move fast and outsmart the competition.

‍

Secure more CRE deals without tying up your capital. Duckfund provides smart EMD and equity financing for investors and developers. 

‍

Why alternative commercial real estate financing options matter in 2025

What’s the problem with CRE financing in 2025? It’s that higher interest rates continue to squeeze deal economics. The Fed’s recent policies have pushed the Prime Rate to its highest in over 20 years. In turn, interest rates have skyrocketed in traditional lending.

‍

Commercial real estate loans now come with rates from five to as much as fourteen percent, according to news outlet Nerdwallet – with SBA loans at the lower end, and construction loans and short-term bridge loans on the higher end. These rates are a steep climb from the mid-3% rates investors enjoyed just two years ago.

‍

Another key challenge in commercial real estate is a $3 trillion maturity wall looming in the next three years, as CRE firm Sterling Asset Group estimates. The refinancing crisis is creating a liquidity crunch. 

‍

Borrowers who previously enjoyed lower interest rates will soon refinance at higher debt service costs or face rejection from traditional financial institutions. 

‍

With traditional bank loans too expensive, CRE professionals could look at other loan options to refinance – like CRE equity or mezzanine financing. 

‍

Similarly, seller financing can be used in investment property deals where buyers struggle to secure a commercial mortgage due to credit score, underwriting challenges, or a poor loan-to-value ratio. 

‍

But this type of financing and financial restructuring doesn’t work for all real estate projects. When individual investors need a line of credit or short-term loans and cannot rely on traditional financial institutions, alternative lenders step in. 

‍

5 best lenders for alternative commercial real estate financing options

New players offering alternative commercial real estate financing options have stepped in to fill the financial void left by traditional lenders. These digital-first lenders, specialized EMD providers, and private capital sources offer funding with the kind of speed and flexibility that traditional bank loans simply can't match in today's environment.

‍

We ranked the 5 best alternative commercial real estate financing options for US investors and developers closing deals in 2025 and beyond. 

‍

The comparison table below gives you a quick snapshot of these innovative lenders, with the type(s) of alternative financing they offer, associated loan amounts, funding speed, rates/fees, as well as unique strengths and possible downsides.

‍

‍

Choosing the right alternative commercial real estate financing option depends on your specific deal structure, timeline, and capital requirements. Some lenders excel at rapid EMD funding for competitive acquisitions, while others specialize in bridge financing for value-add projects or large institutional transactions. 

‍

In the next sections, we look at each provider in more detail so you can make the most informed choice for your next CRE acquisition.

‍

1. Duckfund

Duckfund is the leading alternative commercial real estate financing option, offering hassle-free and ultra-fast soft deposit financing for fast-moving investors who don’t want to spread their liquidity too thin and need an innovative financing partner. They have minimal requirements for EMDs while offering some of the lowest rates in the market.

‍

Their innovative approach extends beyond earnest money deposits. Duckfund also provides equity and debt financing solutions with unlimited reborrowing capabilities, allowing investors to fund multiple properties simultaneously without tapping into existing equity.

‍

Type of financing Duckfund provides

• Soft deposit financing (EMD): Fast earnest money funding so that your capital doesn’t get tied up during due diligence periods
• Equity & debt financing: Flexible long-term funding solutions for commercial property acquisitions and refinancing needs’

‍

Who is Duckfund for

Duckfund works best for CRE professionals handling multiple deals and those seeking a digital-first experience with transparent processes and rapid decision-making.

‍

They’re ideal for active real estate investors and developers across all CRE sectors who want to close competitive deals and need speed and flexibility in fast-moving markets. 

‍

Duckfund is also a strong strategic partner for investors in multifamily, industrial, and hospitality sectors in need of flexible long-term financing.

‍

2. EMDDC

EMDDC is a specialized alternative commercial real estate financing option that focuses exclusively on earnest money deposits and double closing transactions. Their track record with HUD-regulated properties makes them a trusted choice for investors navigating sophisticated deal structures.

‍

Here’s what sets EMDDC apart. This funder specializes in double closing mechanics, which are simultaneous buy-sell transactions that require precise timing and documentation. 

‍

Type of financing EMDDC provides

• Earnest money deposits: Traditional EMD funding up to $100,000 with clear, upfront fee structures for standard acquisitions
• Double closing financing: Specialized funding that enables simultaneous purchase and resale transactions within the same closing period

‍

Who is EMDDC for

EMDDC works best for experienced investors who regularly handle double closings and wholesale transactions requiring HUD compliance expertise. 

‍

They're ideal for real estate professionals who need reliable coordination for complex transaction structures and those working with government-backed properties where documentation precision is critical.

‍

3. Y2 Lending

Y2 Lending offers an alternative commercial real estate financing option built around speed and simplicity, eliminating traditional documentation barriers through their no-doc approach. Their streamlined process prioritizes rapid deployment over extensive paperwork, with EMD funding up to $500,000.

‍

Their competitive advantage lies in removing friction from the lending process. While most lenders require extensive financial documentation, Y2 Lending focuses on deal merit and proof-of-funds, enabling faster decisions for borrowers with non-traditional income sources.

‍

Type of financing Y2 Lending provides

• Hard money loans: Asset-based lending with minimal documentation requirements, focused on property value rather than borrower financials
• EMD funding: No-doc earnest money deposits up to $500,000 without credit checks or income verification (selective, prioritizing their loan clients)
• Transactional funding: Short-term capital for wholesalers and gap funding needs

‍

Who is Y2 Lending for

Y2 Lending works best for investors who value speed over cost and who need both EMD and loan funding from the same provider. 

‍

They're ideal for experienced real estate professionals who can handle higher rates in exchange for ultra-fast approvals and minimal paperwork requirements.

‍

4. Oakstone Lending

Creative investors use this innovative lender for more than just EMD financing. Oakstone Lending specializes in bridge loans and value-add investment strategies. 

‍

Their strength lies in creative deal structuring and flexible repayment terms. Oakstone understands that not every commercial real estate project fits a standard financing template, which is why it offers customized solutions for joint ventures and creative financing arrangements.

‍

The types of alternative financing options Oakstone Lending provides

• Bridge loans: Short-term financing for acquisitions, renovations, and value-add projects requiring immediate capital deployment
• Fix-and-flip funding: Specialized loans designed for property rehabilitation and resale projects with renovation budgets included
• EMD financing: Earnest money deposits with a flat 40% return (minimum $2,000) plus $250 admin fee

‍

Who is Oakstone Lending for

Oakstone Lending works best for active investors focused on value-add real estate projects that require flexible capital structures. 

‍

They're ideal for wholesalers, flippers, and real estate professionals who need adaptable repayment terms and those pursuing creative deal structures that require customized financing.

‍

5. Advance Deposit

Advance Deposit specializes in alternative commercial real estate financing options for substantial transactions, handling deposits from $50,000 to $20 million with transparent legal fee structures. 

‍

Their expertise centers on large-scale commercial deals where option premium arrangements provide strategic flexibility.

‍

Type of financing Advance Deposit provides

• Option premium financing: Large-scale earnest money using sophisticated option contracts with 1%/30d premium structures
• Legal and escrow processing: Comprehensive transaction support with upfront disclosure of all legal and processing fees

‍

Who is Advance Deposit for

Advance Deposit works best for institutional investors and high-net-worth individuals handling substantial commercial acquisitions requiring sophisticated legal structures. 

‍

They're the best CRE businesses managing large-scale transactions that prioritize fee transparency and need strategic flexibility during due diligence periods.

‍

Secure your next CRE deal with the right type of loan

CRE investors increasingly rely on alternative commercial real estate financing options to close deals and keep real estate projects afloat. Compared to tight-fisted traditional lenders, the seven providers we explored offer the speed, flexibility, and innovative solutions needed in today’s CRE landscape.

‍

If you’re managing multiple deals or face tight liquidity, Duckfund is your top choice – offering low fees and fully refundable EMDs with fast funding times. If you’re prioritising the speed of premiums, look for a provider like Y2 Lending. 

‍

And when it comes to (re)financing large deals, get in touch with the lenders on this list that best fit your deal structure and financing needs.

‍

[Ready to accelerate your CRE investments? Schedule a call with Duckfund now to get started with the top EMD and equity financer in the market.]