Introduction
If you’re a business owner, you already know traditional banks weren’t built for people like us.
They want W-2s, multiple years of tax returns, and “proof” of steady employment—none of which fit how entrepreneurs operate.
But here’s the good news: you don’t need a traditional bank loan to start investing in real estate.
Alternative lending options exist that are specifically designed for business owners, self-employed professionals, and investors who are ready to build wealth on their own terms.
Let’s jump right in!
Why Traditional Loans Don’t Work for Business Owners
Banks love cookie-cutter borrowers: people with a W-2, a steady paycheck, and simple taxes.
But business owners?
- We maximize deductions (lowering taxable income).
- We reinvest in our businesses (which banks see as “risky”).
- We show income creatively (and banks don’t like creativity).
The result? Even highly successful entrepreneurs often get denied for traditional real estate loans simply because their taxes make them look “poor” on paper.
What Is Alternative Lending?
Alternative lending is designed for people who don’t fit into the traditional bank mold.
Instead of obsessing over your personal tax returns, alternative lenders focus on the property itself.
The main types of loans business owners can use are:
- Bank Statement Loans
- P&L Loans
- DSCR Loans (Debt Service Coverage Ratio)
Our favorite and the one we always recommend is DSCR.
Why? Because it does not take a look at your bank statements, P&L, or other docs.
As long as the property you want to buy can support itself financially (the property’s rent can cover the mortgage, taxes, and insurance) you can qualify—no matter how many deductions you take on your taxes, your business income, etc.
There is one important caveat – DSCR loans can only be used for investment properties, not owner-occupied properties.
→ Take a look at these 4 Real Estate Loans for Business Owners
Benefits of Alternative Lending for Entrepreneurs
Alternative lending isn’t just about convenience. It’s about giving you the freedom to scale your investments faster.
Here’s why business owners prefer these loans:
- No Need to Explain Your Tax Returns: Forget spending hours explaining write-offs to a loan officer.
- Faster Approvals: Many alternative loans can pre-approve you in just a few days, not weeks.
- Flexibility to Scale Quickly: Since your qualifications are based on property performance, you can buy multiple rentals at once—without traditional lending limits.
- Cashflow > Paperwork: Focus on buying assets that generate income—not playing tax gymnastics to look good for a bank.
What Types of Properties Can You Buy?
With alternative lending, your investment options are wide open:
- Single-Family Rentals: Buy one property or a portfolio of homes to rent out for steady monthly cashflow.
- Multifamily Properties: Duplexes, triplexes, and four-plexes offer multiple streams of rental income from one location.
- Short-Term Rentals (Airbnb/VRBO): If the cashflow numbers work, you can even finance vacation properties or high-demand short-term rentals.
The key is simple:
If the property generates strong rental income, you’re in business.
→ Take a look at some examples of how business owners are investing in this post
Conclusion
You don’t have to change how you run your business.
You don’t have to “fix” your taxes.
And you definitely don’t have to beg a traditional bank for a loan.
Alternative lending gives business owners like you the power to invest in real estate faster, smarter, and without the headaches.
Want us to help you get a loan to invest in real estate?