FAQ - How To Buy Commercial Real Estate With Your Tax Return

Didier Malagies • March 30, 2022

Tax season is a great time to take stock of your company's financial situation and look ahead to the next year.

And, you can start by asking a few simple questions. How will you improve your business? What expenses do you need to tackle?

If you're thinking about investing in or expanding your business, this might also be the right time to consider commercial real estate. Many owners use their tax return for just that — either as a down payment or to cover other costs associated with buying or renting new space.

Here are four ways to use your tax refund for commercial real estate:

Tax return for the downpayment. Use your return for a down payment. At DDA Mortgage, we have access to a variety of capital sources. Some are better suited than others for different uses and stages of growth, so it is important that you talk to a commercial advisor.

Your tax return may be one source you can tap for a down payment on commercial property. We even have 0% down commercial financing available!

Tax return for paying off business debt. If you’re like many businesses and carry debt to manage working capital, using a portion of your tax refund to pay off debt can be smart. It will save money on interest and reduce monthly debt payments. Since commercial lenders look at debt service coverage ratio (DSCR) when underwriting loans, paying off business debt can improve your DSCR and increase borrowing power in the future.

Tax return for paying closing costs. Closing costs typically include items such as interest, loan origination fees, points, and appraisal fees. The cost can range depending on the size and type of loan that's being funded. Since closing costs can run into thousands of dollars depending on the size of the transaction, using your tax refund this way can make good sense.

DDA Mortgage offers loan options from 0% down to 25% down. We can finance your transaction through:

And a variety of other loan types.

Start Your Commercial Application

Provide us with a little information about your current situation and we will start the application process for you.

Start Your Commercial Application v2

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Need working capital for your business?

By DDA Mortgage • July 5, 2022

If you need working capital for your business, you’ve come to the right place. We can get you up to $150,000 in financing in as little as 2 weeks. And unlike traditional banks and other lenders, we are here to help you throughout the process to make sure you get funded. Our program is designed to give businesses like yours access to cash when they need it most. The best part? There is no cash flow analysis, no debt refi, no equipment requirement - just working capital. You can get 30% of your top line, gross revenue from your last tax returns. To qualify for the loan you will need: To be self-employed for 2 years. Have a 680 FICO score or higher. Have a 155 biz score or higher. Access to working capital can help your business in many ways: Working capital loans can help with covering payroll. Some businesses have cash flow problems because they have to pay their employees before they get paid. This can be a problem for startups, especially if the business owner is also an employee. Working capital loans can help you cover payroll and other expenses until you receive payment from clients. Working capital loans can help with buying inventory. The cost of inventory is one of the biggest expenses for most businesses. Working capital loans can help you buy inventory quickly and easily so that you don't have to wait for your customers to pay their bills before they can receive it. Working capital loans can help with rent and building expenses. Rent and building expenses are ongoing costs that must be paid every month regardless of whether or not there have been any sales in that month. Working capital loans help businesses pay these bills on time so that they don't fall behind. There is no obligation to start the lending processes. Just an obligation to yourself to figure out what's best for you. Find out more about how much you can borrow to help you finance your working capital! Complete the form below and one of our advisors will reach out to you. Or, give us a call at (727) 784-5555 and we will be happy to answer all of your questions.

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