By Munoz Ghezlan & Co. Alternative Capital | Strategic Finance | Private Wealth
For many investors, capital is the fuel — but it’s often assumed that capital must come in the form of mortgages, refinance proceeds, or traditional bank loans. In truth, these are only a fraction of the financing strategies available to today’s strategic operator. At Munoz Ghezlan & Co., we specialize in engineering capital structures that give real estate investors room to scale — and working capital is one of the most underutilized tools in the playbook.
What is Working Capital — and Why Should Investors Care?
In business lending, “working capital” typically refers to short-term, flexible financing used to
cover operational needs, bridge liquidity gaps, or seize time-sensitive opportunities.
For real estate investors, this kind of capital can be repurposed far more strategically:
➢ Bridge down payments on new acquisitions
➢ Cover renovations or rehab without refinancing existing assets
➢ Fund closing costs or reserves required for DSCR loans
➢ Preserve liquidity while deploying leverage in parallel
The key advantage is speed and optionality — working capital loans don’t require the collateral, underwriting time, or restrictions of traditional mortgages.
How Our Investors Use It
At Munoz Ghezlan & Co., our clients use working capital to compress timelines and unlock leverage in high-stakes transactions. A few examples:
1. A client with strong equity but low cash closed a $400,000 portfolio using a 10% down DSCR loan — the working capital covered the full down payment via unsecured credit lines.
2. A mid-sized operator needed $100K to complete renovations across four units — we structured a working capital line in 7 days, allowing him to stay on schedule without3. refinancing. A repeat borrower used a $150K working capital facility to qualify for additional financing, improving reserves and DSCR ratios ahead of submission. In each case, this capital wasn’t the core loan — it was the difference between closing and stalling.
The Mechanics: How Working Capital Is Structured
We structure working capital lines to be fast, flexible, and frictionless.
➢ Funding Amounts: $25,000 to $500,000
➢ Underwriting Focus: Personal credit + business profile (no tax returns required)
➢ Funding Speed: 5–10 business days, sometimes faster
➢ Collateral: Typically unsecured
➢ Use of Funds: 100% unrestricted – investor discretion
Additionally, we can offer credit card stacking strategies at 0% interest for 12–18 months — a powerful option for borrowers seeking high-limit, short-term liquidity without triggering traditional DTI or LTV ratios.
Why Investors Overlook This Tool
There are two reasons most real estate investors fail to capitalize on working capital:
1. They're trained to think in mortgages.
They’ve been taught the only way to access capital is through refis, HELOCs, or seller finance — not by strategically utilizing business credit.
2. They associate it with startups.
Many believe working capital is only for eCommerce or retail businesses. In reality, landlords, flippers, and portfolio investors can all qualify — especially if they have an LLC, consistent rental activity, or a funding partner who understands how to structure it.The Strategic Advantage The real power of working capital isn’t just access to money — it’s what you unlock with that money.
➢ Accelerate acquisitions without fire-selling old assets
➢ Meet lending requirements without touching reserves
➢ Bridge the timeline between contract and refinance
➢ Bid more aggressively on deals, knowing you have liquidity behind you
When capital moves quickly, you can move ahead of slower, better-capitalized buyers — and that edge compounds over time.
Final Thoughts
In today’s market, being well-capitalized isn’t enough. You need to be strategically capitalized — with multiple forms of funding that give you speed, leverage, and optionality.
Working capital is no longer just a business term — it’s a tactical advantage for serious real estate operators.
Looking to unlock capital for your next deal?
Munoz Ghezlan & Co. offers tailored working capital solutions for investors, entrepreneurs, and operators nationwide.
Speak to our Capital Desk to learn how to structure the right facility for your goals.
