Commercial Real Estate Loan Strategies, value of using Stated Income.

Commercial real estate loan is inevitable to some companies.  This is so, because, they have no other choice.  They may not have alternative source of funds and they need to buy additional space, to accommodate the growing workforce and to house some equipments.  So, one last way is to apply for a commercial real estate loan.  What are the types of commercial real estate loan available for them?  They may go for the traditional commercial loan or use the stated income method.

Is using stated income a valuable strategy?  For big companies, this doesn’t matter at all.  They have all the requirements intact, such as bank accounts, tax returns and financial statements.  They have all this documents and they are confident, that they will pass the qualification process, based on their assets and bank accounts. However, for the small companies or businesses, it will be an uphill. They knew that their financial statements and tax records will show their incapacity to pay the loan.

Another reason, why business won’t go for the commercial lenders, is they don’t want these banks to go directly to the tax office, and secure their tax returns. They don’t want to exposed their financial status to anyone, because, that is confidential.

This is the reason why, they will go for the traditional banks and apply this strategy, to acquire the loan. With this procedure, bank will no longer ask for your financial documents, but, just use your stated income as bases for their decision.

To avail of a commercial real estate loan, you should consider every option, that will give your company the advantage.  If you are confident, that you have what it takes to be granted a loan, go for the commercial lenders.  They will be able to offer you a higher loan package, because, they are big and capable of doing so.  But, if you think, your financial statement is not enough to qualify for a loan and their documents has inconsistencies, they may settle to using stated income strategy.  They are the same methods of acquiring loans, but, the chances of success vary.  Choose what method is best for your business.