Stated Income Loans: An Alternative For Bank Rejections
One of the biggest hurdles for commercial real estate investors is securing the right financing for their property transactions. Going through traditional channels usually ends up in a string of rejections, due to high requirements for borrowers. Additionally, most commercial real estate transactions are time-sensitive, and waiting on the “chain of command” or jumping through hoops to get bank loans can often cause projects to get delayed. To sidestep these issues, many commercial real estate investors are using stated income loans to complete transactions quickly and efficiently.
It All Comes Down To A Paycheck
Most requirements for traditional loans are fairly standard. Banks and similar lending institutions will want to see strong credit ratings, as well as a healthy business financial history. Once commercial real estate investors have jumped through all of the hoops to qualify for a loan, the lender asks for proof of a regular salary from an employer. For most independent commercial real estate investors, proof of salary and employment can turn into rejection. By and large, commercial real estate investors are independent entrepreneurs who generate revenue from selling properties or from tenants who pay rent. Very few are issued a regular paycheck, even if they are incorporated in some fashion, because the revenue generated is irregular. Rent may come on time, but the amount varies based on the number of occupied units. Selling commercial property, while very lucrative, does not happen on a regular basis. No one sells a fix and flip project every Friday, like clockwork. Stated Income Loans provide an alternative solution to an outdated requirement.
How Stated Income Loans Work
Stated income loans are based around the actual amount of revenue generated from commercial real estate transactions. With stated income loans, lenders look at bank statements and the most recent tax filling to structure a financing solution. There is no need to be on the payroll of your own business, especially if you are the only one running it. Also, stated income loans can be arranged quickly, efficiently, and tailored to meet your commercial real estate needs. Stated income loans sidestep the red tape of traditional lending institutions, so commercial real estate investors can keep projects in motion and avoid a string of rejections.
Get The Best Stated Income Loans
At Vantage Commercial Capital, we provide a wide range of financing solutions for commercial real estate transactions of all sizes. We offer stated income loans to get your project underway quickly, without any red tape. To learn more, contact our offices today.