Author: Oscar Herrera

Introduction

If you’re a business owner, you probably do everything right when it comes to taxes:

You maximize deductions, reinvest in your business, and lower your taxable income as much as possible.

But then—when you try to get a real estate loan—banks slam the door in your face.

Here’s the good news:

You can still get real estate loans, even if you write off everything.

You just need the right strategy—and the right lenders who understand how entrepreneurs really work.

Let’s break it down the real estate loans for business owners.

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Real Estate Lending Based on the Property, Not You

Forget about proving your personal income.

Forget about fixing your tax returns.

Today’s smarter real estate lending focuses on one thing:

Does the property pay for itself?

With DSCR loans (Debt Service Coverage Ratio loans), lenders don’t care about your W-2s, your business deductions, or your tax returns.

They only care if the rental income covers the mortgage and expenses.

• If yes? You qualify.
• If not? You keep shopping for a property that can. Simple.

→ See other types of real estate loans for business owners

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Example #1 — Heavy Write-Offs, First Rental Property

Meet Carlos.

Carlos owns a thriving marketing agency. But after deductions, he only shows $30,000/year in taxable income.

Traditional banks told him “no.”

Alternative lenders said “yes.”

• Loan Type: DSCR Loan
• Property: $400,000 rental home in Tampa, FL
• Downpayment: $80,000 (20%)
• Monthly Rent: $2,600
• Monthly Expenses: $2,100

Net Cashflow: ~$500/month

Cash-on-Cash Return: ~7.5%

Key Takeaway:

Carlos’s real-world financial success mattered more than his taxable income.

And the rental property’s cashflow sealed the deal.

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Example #2 — Buying Multiple Properties per Year

Now meet Sofia.

Sofia runs a consulting firm. She has a high profit margin and needed to write off. A lot.

Before real estate, she wrote off nearly 90% of her income.

Banks called her “unqualified” — but alternative lending helped her scale a portfolio without changing a thing.

• First Property:
  • $350,000 rental in Phoenix, AZ
  • $70,000 downpayment
  • ~$400/month cashflow
• Second Property:
  • $300,000 duplex in Charlotte, NC
  • $60,000 downpayment
  • ~$700/month cashflow
• Third Property:
  • $250,000 rental in Orlando, FL
  • $50,000 downpayment
  • ~$500/month cashflow

Total Net Cashflow: ~$1,600/month across three properties.

Key Takeaway:

The three properties give her an additional tax write off – depreciation. So not only did alternative lending help her buy properties, she got to use depreciation to bring her taxable income to $0.

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Key Takeaways for Business Owners

Here’s what you need to remember:

• You don’t have to fix your taxes to qualify. Alternative lenders don’t care about your deductions.
• The right property matters more than your personal income. Find cashflow-positive deals and you’re good.
• You can scale faster, smarter, and stress-free. No more endless paperwork battles with traditional banks.

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Conclusion

If you’re a business owner who’s been frustrated trying to get real estate loans the traditional way, you’re not alone—and you have options now.

Real estate loans for business owners do exist!

You can invest.

You can build wealth.

And you can do it without changing how you run your business.

Want to find out how you can invest in real estate even if you write off everything?

→ Click here to schedule a call with one of our advisors

Let’s help you unlock your next move—the smart, entrepreneur-friendly way.

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!

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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.

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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

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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.

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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

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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.

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Want us to help you get a loan to invest in real estate?

→ Click here to schedule a call with one of our advisors

Introduction

It’s one thing to talk about using your home equity to invest—it’s another to actually see it happen.

Real homeowners are taking control of their financial futures by unlocking their home equity and buying rental properties that pay them every month. In this post, we’ll break down exactly how two different investors used their equity, what returns they’re seeing, and the key lessons you can apply to your own strategy.

Example #1: Joe’s Story — $75K Equity → $1,000/mo Cashflow

Joe had been paying down his mortgage for about 10 years, quietly building up around $200,000 in equity. Instead of letting it sit idle, he decided to put a portion of it to work.

• Equity Accessed: $75,000 through a HELOC
• Property Purchased: 3-bedroom single-family rental in Dallas, TX
• Purchase Price: $250,000
• Down Payment: $50,000
• Closing and Minor Renovations: $20,000
• Cash Reserves: $5,000

Joe’s strategy was simple: buy a rental property that cashflowed from day one. After mortgage, insurance, taxes, and management fees, his property nets him around $700 per month in positive cash flow.

• Cash-on-Cash Return: ~11%
• Payback Timeline: Less than 9 years to recoup his initial investment through pure cash flow. The property will also appreciate 2-4% per year throughout those 9 years.

Key Takeaway:

Joe didn’t drain his savings—he used his home’s “hidden” value to buy an asset that pays him every month.

Want to know how much equity you can access without a credit pull?

→ See How Much Equity You Can Access with Figure.com in under 5 minutes

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Example #2: Lisa’s Story — Equity Split Into 2 Rental Properties

Lisa had $180,000 in equity and wanted to diversify rather than buy one expensive rental.

She accessed $90,000 through a HELOC and split her investment into two affordable rental properties in two different cities:

• Property #1:
  • Purchase Price: $170,000
  • Down Payment + Closing: $40,000
  • Reserves: $5,000
  • Monthly Net Cash Flow: $600
• Property #2:
  • Purchase Price: $160,000
  • Down Payment + Closing: $38,000
  • Reserves: $5,000
  • Monthly Net Cash Flow: $550

By diversifying, Lisa minimized her vacancy risks and now enjoys around $1,150 per month in combined positive cash flow. Plus, she’s building equity in two properties instead of one.

• Cash-on-Cash Return (combined): ~15%
• Added Bonus: More appreciation potential across two different markets

Key Takeaway:

Splitting her equity across two deals gave Lisa more stability and multiple income streams—while still keeping her primary home untouched.

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Example #3: David Partnered with Us To Be a Passive Investor — $120K Investment → $1,000/mo Cashflow with Co-Living

Some homeowners don’t want to manage properties themselves—or spend months hunting for deals. That’s why some investors are partnering directly with our team to invest in co-living properties.

Here’s how it works:

• Investment Amount: $120,000
• Strategy: Co-living model (renting by the room)
• Location: High-demand rental market
• Monthly Net Cash Flow: Our investors receive $1,000 per month after all expenses

With co-living, instead of renting a house to one tenant for $2,000/month, we rent it by the room—often generating 2x to 3x the income.

Plus, you don’t have to find tenants or deal with management headaches. We handle everything – sourcing the home, buying it, converting it into co-living, renting it via PadSplit, and paying you $1,000 monthly as an investor.

• Cash-on-Cash Return: ~10%
• Hands-Off Investment: Passive ownership with active cash flow

Key Takeaway:

Investing with an experienced team can help you generate strong returns without the stress of doing it all yourself.

If you’re interested in learning more about investing in co-living, click here.

Key Lessons from These Stories

There’s a lot we can learn from Joe’s, Lisa’s, and David’s strategies:

Use Conservative Leverage

All investors borrowed responsibly, tapping into a safe portion of their equity (typically no more than 75–80%). They left a cushion in case market values fluctuate.

Focus on Cashflow Over Appreciation

Neither Joe, Lisa, or David invested hoping the markets goes up.

They made sure the properties produced positive monthly cash flow from day one—which is what truly builds financial freedom.

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Pro Tip:

Not sure what kind of rental property would fit your budget and goals?

Our team can help you create a personalized strategy based on your equity and cash flow goals. Click here to schedule a call.

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Final Thoughts

Your home equity could be the launchpad to your next income stream—and these real examples show it’s not just theory.

It’s happening right now.

Build monthly income.

Grow a portfolio without touching savings.

Keep your lifestyle (and your home).

Ready to see how much income your home equity could generate?

Step 1: Visit Figure.com to See How Much Equity You Can Access. Takes less than 5-min and it does not impact your credit score.

Step 2: Once you know how much equity you can access, schedule a call with our advisors.

We’ll help you run your numbers, explore property options, and show you how to make your equity work smarter for you.

Step 3: Tell your friends so we can help more people generate wealth faster.

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If you haven’t already, check out this post:

→ How to Turn Your Home Equity Into a Passive Income Stream (Without Selling Your House)

Introduction

Most people believe that the only way to access their home equity is by refinancing or selling their property. But there’s a smarter way: you can leverage your existing equity to invest and build a passive income stream—without selling your home or touching your savings.

In this post, we’ll break down how you can leverage your home equity, why a HELOC might be the best option, and how you can find out how much you qualify for in just a few minutes—with no credit check required. We will also show you the best types of investments you can make, and how to do it safely.

What Is Home Equity and How Can You Access It?

First things first: what exactly is home equity?

Home equity is the difference between what your home is worth today and what you still owe on your mortgage. For example, if your home is valued at $400,000 and your mortgage balance is $250,000, you have $150,000 in equity.

Instead of selling your home to unlock that value, you can borrow against it.

Now, how do you access it without selling?

Cash-Out Refinance vs HELOC.

• Cash-Out Refinance: With a cash-out refinance, you replace your current mortgage with a new, larger loan and take the difference in cash. It can offer a lump sum to invest but comes with closing costs and resets your mortgage terms. Plus, if you have a low mortgage rate locked in, refinancing may not make financial sense as you’ll probably get a higher interest rate upon refinancing.
• HELOC (Home Equity Line of Credit): A HELOC is flexible line of credit secured by your home. You typically get approved for a maximum amount, and you can borrow some or all of it, then you repay it over 5, 10 or even 30 years. HELOCs make a lot of sense now because you’re not getting new loan or a new rate for your mortgage.

Both options allow you to tap into your equity—without selling your house. But if you want speed, flexibility, and low upfront costs, a HELOC is usually the better choice.

Want to know how much equity you could access in just 5 minutes—with no impact to your credit?

We recommend checking out Figure.

They offer a super simple 5-minute HELOC pre-qualification with no credit check—and if you move forward, you could get your cash within just 5 days.

→ See How Much Equity You Can Access with Figure

Why Using Your Equity for Investments Makes Sense

Using your home equity for investment makes sense because with the right investment, you can borrow at a low interest rate through a HELOC and invest it out at a higher one — making money off money that isn’t even yours.

What Kind Of Investments Should You Consider?

Given that you’re borrowing against your home, the investment you should look for should be on the safer side (although no investment is 100% safe).

Focus on investments that generate monthly passive income so that the income pays for the loan and gives you an investment for free. For example, smart real estate investments can produce steady cash flow each month—paying for the loan and helping you build long-term wealth.

Disclaimer: This is not financial advise. You should not construe it as if it was.

Types of Properties That You Can Buy?

Once you access your equity, you have options:

• Rental Properties: Buy single-family homes, condos, or small multi-family properties to rent out long-term. Rental income can cover your loan payments and create extra cash flow.
• Short-Term Rentals (like Airbnb): In popular travel destinations or business hubs, short-term rentals can generate higher monthly income compared to traditional rentals—although they require more active management or hiring a property manager.
• Co-Living (like PadSplit): Co-living is a model where you buy a single-family home, but instead of renting it to one family, you rent it by the room. We like this a lot because instead of receiving $2,000/mo in rent, renting it by the room you can generate 2X-3X that amount monthly. Companies like PadSplit (the Airbnb of co-living) makes it super easy to get renters by the room. If you’re interested in learning more about investing in co-living, click here.

Tip: Always run the numbers carefully before buying. Look for properties that are cashflow-positive after accounting for mortgage, insurance, taxes, and maintenance costs.

Risks to Consider (And How to Manage Them)

Like any investment strategy, there are risks to manage:

• Borrow Responsibly: Use only a safe portion of your available equity (typically up to 75–80%).
• Buy the Right Properties: Focus on properties that generate reliable, positive cash flow—not just appreciation potential.
• Plan for Vacancies and Repairs: Set aside reserves to cover maintenance and periods without tenants.
• Work with Experts: From financing to property selection, having the right advisors can make all the difference. (We can help you with this).

Final Thoughts

If you’ve been sitting on home equity, now is the perfect time to put it to work.

Your home equity could be the key to building real wealth—without needing to sell your house.

Build passive income.

Grow your real estate portfolio.

Keep your savings and your home.

And thanks to partners like Figure, accessing your equity has never been easier.

In just 5 minutes—and without a credit check—you can find out how much you qualify for. If you like what you see, you could have your funds in as little as 5 days.

→ Check Your Home Equity with Figure Now

By accessing it strategically and investing in the right properties, you can create a steady passive income stream that grows over time.

Want to see real examples of homeowners investing with their equity?

→ Real Examples of Homeowners Building Wealth with Equity

Introduction

Do you have a low mortgage interest rate that you locked in years ago—but now you’re itching to invest in real estate?

Good news: you might not need to touch that low-interest mortgage at all.

In this post, I’ll show you a smart way to use the equity in your home to buy another property—without refinancing. This strategy is especially useful for homeowners in the U.S. who have paid 40% or more of the home.

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What Is Home Equity and How Can You Use It?

Let’s start with: What is equity?

Equity is the difference between how much your home is worth today and what you still owe on your mortgage.

For example, if your home is worth $500,000 and you owe $300,000, you have $200,000 in equity.

How do you those $200,000 that into cash?

There are a few options:

• Cash-out Refinance: You can refinance your mortgage to pull cash—but if you have a low interest rate compared to today’s rates, there’s no need to consider this one today.
• Second Mortgage: A separate loan with fixed payments.
• HELOC (Home Equity Line of Credit): A HELOC is flexible line of credit secured by your home. You typically get approved for a maximum amount, and you can borrow some or all of it, then you repay it over 5, 10 or even 30 years. HELOCs make a lot of sense now because you’re not getting new loan or a new rate for your mortgage.

All three options allow you to tap into your equity—without selling your house. But if you want speed, flexibility, and low upfront costs, a HELOC is usually the better choice.

Want to know how much equity you could access in just 5 minutes—with no impact to your credit?

We recommend checking out Figure.

They offer a super simple 5-minute HELOC pre-qualification with no credit check—and if you move forward, you could get your cash within just 5 days.

→ See How Much Equity You Can Access with Figure

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Strategy: How to Tap Into Your Equity Without Touching Your Mortgage

The key is to not refinance.

Instead, you can use a HELOC or a second mortgage to pull cash from your equity, keeping your original mortgage—and its low rate—intact.

Then, use the cash as down payment on an investment property.

Step-by-step guide

1. Calculate your available equity: Use sites like Zillow to get an estimated value of your property, or hire an appraiser for an accurate value.
2. Explore loan options: Talk to lenders like Figure to See How Much Equity You Can Access. Takes less than 5-min and it does not impact your credit score.
3. Get pre-approved: Most lenders can give you a pre-approval in 1–3 days to know how much you can actually get in cash-out.
4. Choose your investment property strategy: Do you want to use the funds to buy a rental property for long-term rentals? Airbnb? Or maybe a duplex or four-plex? Most American home-owners with $200,000 in equity could buy a small building – and they don’t even know it.
5. Use rental income to pay the loan: If you’re buying a rental, make sure the cashflow can cover the mortgage of the new real estate and the loan from your cash-out. 90% of the times it pencils out and you may even have additional cashflow.

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Why This Strategy Works

• You keep your original low-interest mortgage.
• Access cash without selling your home.
• Great for scaling your real estate investments.

This strategy allows you to build wealth through real estate while keeping your biggest financial win—your low mortgage rate—untouched.

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Final Thoughts

Using your home equity can be a powerful move if you want to invest in real estate—without giving up your killer interest rate.

If you’re ready to find out how much equity you can use, or want help finding investment deals, contact us to help you.

Want to see real examples of homeowners investing with their equity?

→ Real Examples of Homeowners Building Wealth with Equity

Introduction

If you’re a business owner, you already know the game: write everything off to lower your taxes, and next thing you know—you can’t get approved for a traditional loan.

But guess what? There are a less-common option available for you that don’t require a W-2 or tax returns to buy real estate.

The loans below are specifically built for entrepreneurs like you—who run lean, write off everything, and still want to invest and grow.

Let’s break them down.

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Loan #1: Fix & Flip Loans

Buy a property, fix it up, and sell it for a profit—all with one loan.

Lenders only care about the numbers of the project, not your taxes or job.

A fix and flip loan can be used to buy the property and finance the renovation costs.

For example, you find an “ugly” property for $300,000, add $50,000 of renovations and sell it for $450,000. The typically covers 85% of the property and renovation (sometimes even higher if you have experience).

You can use this loan to fix & flip single-family and 2 -4 unit multi-family properties.

Lender looks at:

• Property value
• Renovation costs
• Sale potential (ARV)

Ideal if you:

• Have access to contractors or can handle remodels
• Want fast Want fast returns but don’t want to tie your cash to the project to build equity
• Have access to good deals

You’ll need:

• 620+ credit score
• A property with solid profit margin (lenders look for 15% net profit margin to approve a loan)

Typical Terms:

• 15–25% down
• 3–24 month loan duration
• 10–13% annually (interest-only payments)
• Principal is paid when property is sold

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Loan #2: Build & Sell Loans

Do you own a piece of land? Want to build on it and flip? This one’s for you.

Build & Sell loans are similar to Fix & Flip loans, but with ground-up construction

You can use the loan to buy the lot or build on one you already own and sell new construction for top dollar.

You can use this loan to build single-family and multi-family properties.

Lender looks at:

• Lot value
• Build cost
• Sale potential (ARV)

Ideal if you:

• Are a builder or contractor
• Want fast returns but don’t want to tie your cash to the project

You’ll need:

• 650+ credit score
• A property with solid profit margin

Typical Terms:

• 15–25% down (or less if you own the land)
• 6–24 month loan duration
• 19–11% annually (interest-only payments)
• Principal is paid when property is sold

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Loan #3: Buy & Rent Loans

If you want to buy rental properties without showing tax returns, income, or employment verification, this loan is for you.

To get approved for this type of loan, the lender only cares about the revenue and expenses of the property. If the monthly rent can pay the mortgage, insurance, and taxes, you can get approved.​

You can use this loan to buy single-family and multi-family properties.

The rentals can be long-term, mid-term, or short-term like Airbnbs.

Lender looks at:

• Property being turn-key for rental or already with renters
• Rental comparables
• The rent should cover monthly expenses

Ideal if you:

• Want to buy rental properties but don’t qualify for traditional loans
• Want to buy property rentals and not depend on traditional requirements like your income, taxes, or debt-to-income ratio

You’ll need:

• 620+ credit score
• No income or tax docs needed

Typical Terms:

• 20–30% down
• Up to 30 year loan duration
• 6.5-8.5% annually (varies with downpayment and ratio)

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Loan #4: Fix & Rent Loans

Buy, renovate, refinance, and rent. This hybrid loan lets you fix & flip a property, then turn it into a long-term asset.

It first uses the Fix & Flip loan and then it refinances it using the Buy & Rent loan.

Use it to:

• Pull cash out if you create equity
• Transition from short-term loan to 30-year mortgage

Who it’s for:

• Self-employed investors who want to buy low and not pay for renovations out of pocket
• Owners who prefer to hold, not sell

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Final Thoughts

Just because your tax return says you “don’t make money” doesn’t mean you shouldn’t qualify for real estate financing.

At InvestorHQ, we help business owners like you invest smart—without traditional bank headaches.

Ready to invest in real estate?

→ Click here to schedule a call with one of our advisors