Using Stated Income Commercial Real Estate Loans Effectively

When you are investing in properties, you know you need to choose the financing carefully, and that different financial packages are designed with very different needs in mind. That’s why you need to make sure that your selection promotes your goals. If those goals are to expand your portfolio and make real estate your business, then the financing you take out needs to facilitate your use of the whole portfolio as one entity. That means it has to help you move equity where you need it, when you need it, so you can make as much money off your properties as possible. Here is how a stated income commercial real estate loan can do just that.

How Stated Income Loans Function for Investors

Stated income loans work more like business loans than traditional property loans. That means they are based on the building’s income potential rather than its resale value, and while the building serves as security for the loan, it is also expected to function as an income generating entity. This allows you the ability to take the money out of the building, moving it to other investments and effectively keeping your portfolio as liquid as you need it to be while adding properties. This way, your highest earning buildings can finance improvements across your portfolio.

Program Parameters

  • W-2 or self-employment verification
  • Credit score of 600 or higher
  • Up to 65% LTV for office buildings, restaurants, and other commercial properties
  • Up to 70% LTV for 1-4 unit non-owner occupied residential properties
  • Up to 75% LTV for 5+ unit non-owner occupied residential properties

These powerful features make it easy to get the most out of your investment. Contact us today for more information about using stated income loans for your next property. AAA Commercial Finance Group associates are standing by to help you with anything you need to decide whether or not this is the right kind of funding for your company.