When it comes to securing commercial real estate (CRE) financing, many investors and business owners instinctively turn to traditional banks and credit unions. While these lenders offer competitive rates and structured loan programs, they also come with rigid underwriting guidelines, lengthy approval processes, and documentation-heavy requirements. For those who don’t fit into the traditional lending box, alternative financing options like Lite Doc, Bridge, Bank Statement, and No Doc Loans can be the key to unlocking real estate opportunities.
The Pros & Cons of Traditional CRE Financing
Traditional banks offer lower interest rates and longer repayment terms, often with amortization up to 25 or 30 years. They also provide relationship banking benefits, including business checking and treasury services. However, they require strict documentation, such as full tax returns, financial statements, and P&L reports, making approvals a lengthy process. Additionally, they heavily scrutinize credit and cash flow, which can be a challenge for self-employed borrowers and investors.
For those who need flexibility, speed, or alternative income verification, thinking beyond traditional financing can make all the difference.
Investor Financing: Lite Doc & Bridge Loans
For investors looking for a streamlined loan process without the hassle of tax returns, Lite Doc and Bridge Loan programs provide faster, more flexible solutions.
Lite Doc Loans are designed for investors who prefer not to share tax returns. Instead, we require a T-12 operating statement and rent roll to evaluate the property’s cash flow. This approach makes the process faster and more efficient.
Bridge Loans work well for quick closings or properties that aren’t stabilized yet. These short-term financing solutions allow investors to secure the property now while we structure the takeout loan later.
Owner-User Financing: Bank Statement & No Doc Loans
For business owners who occupy their properties, proving sufficient cash flow available for debt service (CFADS) can be a major hurdle. Bank Statement and No Doc Loan programs help overcome these challenges.
Bank Statement Loans rely on 12 months of business bank statements instead of tax returns to determine income. Borrowers can qualify for up to 75% LTV, with fixed terms from 5 to 30 years.
No Doc Loans work well for owner-occupied deals when the borrower can put 30% down. The only requirements are an application, credit authorization, and an appraisal, and we can close in just 21 days!
Let’s Get Your Deal Funded!
Whether you’re an investor or owner-user, you don’t have to be limited by traditional lending constraints. At Bennett Capital Advisors, we specialize in tailoring financing solutions that fit your unique situation.
Need a fast, flexible commercial loan? Let’s discuss your deal today!
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