Newark, NJ CRE Investors Are Using Stated Income Loans

The commercial real estate market in Newark, NJ is growing, but finding the right financing remains a challenge for investors. Banks have unusually high requirements, which pushes many Newark, NJ CRE investors to the sidelines. Fortunately, there is a very powerful lending tool which Newark, NJ CRE investors can use to sidestep the pitfalls of traditional bank loans.

How Traditional Loans Marginalize Newark CRE Investors

All banks have fairly universal requirements for commercial real estate loans. Traditional lending channels want to see excellent credit ratings, a strong history of financials, and proof of employment and salary. If the first two requirements were not prohibitive enough for independent commercial real estate investors, having to provide proof of employment and salary certainly are. Most Newark CRE investors are self-employed. While this can be under a corporate structure, such as a sole proprietorship, partnership, or LLC, drawing a regular salary is rarely in the picture. Newark Commercial Real Estate investors generate revenue from selling and renting properties. Both rarely yield the same amounts twice. Selling properties is not something that happens on a regular schedule, and a good portion of the revenue goes back into new property investments. Rental properties, while they generate monthly revenue, do not always yield the same amount due to occasional vacancies. Additionally, rent is paid by individuals and other entities, so the money is not given as a paycheck. Putting in the extra layer to issue a regular paycheck is a waste of time.

Stated Income Loans For Newark, NJ CRE Investors

Stated income loans allow local commercial real estate investors to avoid the red tape and prohibitive requirements of traditional lending channels. Stated income loans are structured around, as the term implies, statements of income. Instead of having to provide proof of salary, commercial real estate investors in Newark, NJ show a statement of income, supported by tax records. Stated income loans are then issued based on the statement of income, prior borrowing history, and the overall profitability of the property involved in the transaction. Stated income loans can also be arranged faster than traditional loans, providing funding to Newark, NJ Commercial Real Estate investors for time-sensitive property transactions.

Get The Best Stated Income Loans In Newark, NJ

At The Capital Lenders, we strive to provide local commercial real estate investors with fast, efficient, and affordable alternatives to traditional loans. Our team will work with you to create a solution that fits your needs. Contact our offices today to get started.