Using Stated Income Commercial Real Estate Loans to Grow
If your business is the business of real estate property management, you already know that not every financial product is a good fit for every purchase. What you might not realize is that there are options out there that allow you to more easily capitalize on your entire portfolio by making it easy to move money between properties. This means you can use the equity in a stable investment property to finance the upgrades and acquisitions you need to round out your other holdings.
How Stated Income Loans Work
While traditional commercial real estate financing is based on the market sale value of your building, stated income commercial real estate loans are based on its earning potential, allowing you to finance in a way that is more realistic about its performance as an investment. This can provide you with great opportunities when you have equity in a well-performing property and you need to raise funds to work out your next acquisition. It can also be used to finance an initial purchase of a qualifying property.
Stated Income Loan Program Parameters
- Financing for credit scores at or above 600
- Up to 65% LTV for warehouses, office building, 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
- W-2 or self-employment verification
- Cash-out refinance, refinance regularly, or make acquisitions
Make Your Buildings Work for You
If you are managing a large or growing real estate portfolio, you need to be able to treat it as a single, organically developing entity. Having access to loans that allow you to move equity through reinvestment in this way is one of the best methods of handling that, because you can make sure your risk is well-managed by funding from your lowest-risk properties to improve your overall portfolio health and your available equity for projects.
Talk to a Speritas Capital Partners associate today to start an application.