What’s the Difference Between a Bank and an Investment Lender?
December 11, 2025
Although many investors use the word “bank” to describe any lender offering rental property loans, banks operate very differently from private investment lenders. Banks are federally regulated financial institutions that must follow strict underwriting guidelines, licensing rules, and credit requirements.
Banks typically focus on:
  • Owner-occupied mortgages
  • Conventional residential loans
  • Consumer lending products
  • Business loans with strong financial documentation
Because banks must follow traditional income verification, DTI requirements, and credit risk evaluations, they often aren’t flexible enough for investors who:
  • Own multiple properties
  • Use BRRRR or short-term rental strategies
  • Need fast approvals or creative structuring
  • Can’t document traditional W-2 income
  • Want asset-based underwriting
Business Purpose Lenders (BPL) like Lend Investors Capital are purpose-built for real estate investors — offering faster approvals, flexible qualification, and investment-focused loan programs such as DSCR, bridge loans, and RTL.