Needing non-federal financing

[Icymudpuppy]

Needing some advice regarding financing.

I am a small sole proprietorship and as such I keep my business profits in terms of federal reporting very low.

I need to purchase a new business property to operate out of, but since all the banks require federal income tax for loan applications, I am having a lot of difficulty getting a loan to purchase a new property. Even though I have over 30% to put down and the current business location expense will be the same as the new business location expense. Actually less, since after the down payment, my payments will be less than they are now.

Does anybody know of a lending option that doesn't punish you for avoiding income taxes?

[timosman]

Needing some advice regarding financing.

I am a small sole proprietorship and as such I keep my business profits in terms of federal reporting very low.

I need to purchase a new business property to operate out of, but since all the banks require federal income tax for loan applications, I am having a lot of difficulty getting a loan to purchase a new property. Even though I have over 30% to put down and the current business location expense will be the same as the new business location expense. Actually less, since after the down payment, my payments will be less than they are now.

Does anybody know of a lending option that doesn't punish you for avoiding income taxes?

Student loan.

[specsaregood]

A self-employed friend of mine used https://www.sofi.com recently for a personal loan and is happy with the results. He had a low reported income, but great credit. I don't know if it meets your specs, but you can do it all online so shouldn't be all that big of a deal to find out.

[Icymudpuppy]

Last time I checked, Sofi, and most of those other lenders like them give short term capital loans based on Monthly gross revenue usually a maximum of 50% of gross revenue over a 3 month period and the loan is to be paid off within 3 years at most. For me, that would be a $36,000 loan, which isn't enough to buy the property. I have 65,000 to put down, on a 235,000 property. 170k is the amount I need financed for a 15 year term.

[Icymudpuppy]

Student loan.

I can't use that for a real estate purchase, when I am not attending school can I?

[specsaregood]

Last time I checked, Sofi, and most of those other lenders like them give short term capital loans based on Monthly gross revenue usually a maximum of 50% of gross revenue over a 3 month period and the loan is to be paid off within 3 years at most. For me, that would be a $36,000 loan, which isn't enough to buy the property. I have 65,000 to put down, on a 235,000 property. 170k is the amount I need financed for a 15 year term.

I know the loan he got was for 7yrs, but yeah it sounds like they might not be right.

[phill4paul]

You said business property. Is there possibly a residence on it? If so then maybe a VA loan with that kind of down payment. You say you have a current business property. Any equity?

[Icymudpuppy]

You said business property. Is there possibly a residence on it? If so then maybe a VA loan with that kind of down payment. You say you have a current business property. Any equity?

VA loan requires showing that taxable income. I need a loan that isn't federally regulated.

[oyarde]

Needing some advice regarding financing.

I am a small sole proprietorship and as such I keep my business profits in terms of federal reporting very low.

I need to purchase a new business property to operate out of, but since all the banks require federal income tax for loan applications, I am having a lot of difficulty getting a loan to purchase a new property. Even though I have over 30% to put down and the current business location expense will be the same as the new business location expense. Actually less, since after the down payment, my payments will be less than they are now.

Does anybody know of a lending option that doesn't punish you for avoiding income taxes?

You might try a local credit union and point out your payment will be no more than the rent you have been paying .

[bunklocoempire]

Family/friends, like minded people interested in your goals, and a solid contract for any/all parties. No dice?

A seller interested in the same things that you value.

Not sure what the property you are trying for entails, but sellers with un-permitted structures looking to sell can open up alternative loan opportunities.