How to Get an Attractive Loan without Providing Tax Returns

By: Zack North

Documentation Concerns for Commercial Borrowers

Documentation issues can present a major issue for prospective borrowers trying to secure a commercial real estate loan.  Some prospective borrowers have tax returns that do not necessarily reflect their current income, while others have difficulty producing the required documentation in the first place.

Alternative solutions do exist, but if prospective borrowers are not aware of all the available options, they could settle for a hard money loan with a high interest rate.

Many borrowers in today’s market are discovering that it is possible to secure an attractive loan without providing an excessive amount of documentation.  This borrower in Illinois is just one example.

A Commercial Direct solution in Berkeley, Illinois

An investor in Illinois ran wanted to refinance and take cash out of their multifamily property but soon encountered difficulty thanks a couple of specific needs.  One: they needed a quick transaction, which is not always possible in the commercial lending arena.  Two: they needed to secure financing without providing tax returns.

Just one of those requirements would have made it difficult for the investor to work with a bank.  But both of them together all but ensured that they would need to find an alternative solution.

Thankfully, the team at Commercial Direct is equipped to provide solutions that cover a wide range of borrower needs.  Not only was the investor able to get a $339,500 loan without providing tax return documentation, but they also saw the loan close in less than 30 days.

Do you need a reduced documentation solution for your commercial loan request?

We offer a number of options for prospective borrowers, including light documentation loans for real estate investors and stated income solutions for owner-occupied transactions.

In each case, our expert team reviews other information, like rent rolls and operating statements, to get a clear understanding of a borrower’s business and their property’s ability to generate revenue.  We even give you the option of providing business bank statements in lieu of tax returns when you apply for a commercial mortgage.

If you are not able or not willing to provide tax return documentation, one of our alternative options could be the ideal solution for your financing request.  Visit our Loan Customizer page today to start designing your ideal commercial mortgage.

Author: Zack North

Zack North is the Director of Marketing for Commercial Direct.  As a regular contributor to a number of top industry publications, Zack enjoys writing about topics that help investors and business owners approach commercial mortgage financing with confidence.

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