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



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.
By Didier Malagies May 11, 2022
The process of seeking a commercial loan in Florida can be overwhelming.
By Didier Malagies April 27, 2022
For doggy daycare owners and buyers, there are two main types of Government Subsidized Loans that can help you buy or grow your business .
By Didier Malagies April 27, 2022
The Small Business Administration (SBA) 504 loan is a long-term financing tool for growing small businesses.
By Didier Malagies April 6, 2022
Commercial loans are easy to get if you know this.
By Didier Malagies March 30, 2022
The Small Business Administration (SBA) 504 loan is a long-term financing tool for growing small businesses.
By Didier Malagies March 23, 2022
As a business owner, you need to know why commercial loans are important, how it works, and what is available to you.
By Didier Malagies March 16, 2022
Commercial real estate loans are similar to residential mortgages, but they usually require a shorter repayment period and a higher down payment.
By Didier Malagies March 16, 2022
For small business owners, there are three main types of commercial real estate loans: conventional commercial loans, SBA 7(a) loans and SBA 504 loans.
By Didier Malagies March 16, 2022
Commercial real estate loans are a lot like a residential mortgage. However, the programs, terms, and types vary.
More FAQs

Check out our other helpful videos to learn more about credit and residential mortgages.

By Didier Malagies April 21, 2025
When you're buying a home, it's not just about affording the purchase price or down payment. You’ve got closing costs, moving expenses, and all the “surprise” things that come up after you move in — like needing a new appliance, fixing a plumbing issue, or just furnishing the place. Keeping some cash reserves is smart. A good rule of thumb is to have at least 3-6 months of living expenses saved after the purchase, just in case life throws a curveball. Are you thinking about buying soon or just planning ahead? tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
By Didier Malagies April 15, 2025
Wade Pfau, a leading voice in retirement income planning, has long advocated for the strategic use of reverse mortgages —and current market volatility could reignite interest in this often misunderstood tool. 🔁 Why Market Volatility Renews Reverse Mortgage Talks In times of market downturn, retirees face sequence of returns risk , meaning early losses can severely impact the longevity of their portfolio. Pfau suggests that reverse mortgages , particularly Home Equity Conversion Mortgages (HECMs) , can act as a buffer asset to avoid selling investments at a loss. Here's how: During market dips , retirees can pull funds from a reverse mortgage line of credit instead of their investment accounts. This gives their portfolios time to recover before resuming withdrawals. Result : More sustainable income and potentially greater long-term financial security. 🧠 Shift in Strategy: Not Just a Last Resort Pfau argues that reverse mortgages should be considered early in retirement planning , not just as a last-ditch effort: Opening a HECM line of credit early can grow over time due to the compounding credit line. Provides flexibility and tax-efficient access to funds. Helps retirees coordinate income sources between portfolio withdrawals, Social Security, and home equity. 👓 Changing Advisor Perspectives Financial advisors—previously skeptical—are beginning to see reverse mortgages in a new light: Volatile markets have prompted a more open-minded view among planners. More are incorporating reverse mortgages into holistic retirement income strategies . Bottom line : Market volatility doesn’t just threaten retirement—it also opens the door to rethinking traditional strategies . As Pfau puts it, home equity is too significant a resource to overlook, and when used wisely, reverse mortgages can enhance retirement resilience
By Didier Malagies April 14, 2025
Are you a salaried employee, hourly, self-employed, or a contractor? Do you receive bonuses, commissions, or overtime? How consistent is that income? Can you provide recent pay stubs, W-2s, or tax returns? Self-Employment (if applicable): How long have you been self-employed? Can you provide two years of business tax returns and profit/loss statements? 🔹 Funds to Close Questions Lenders want to confirm you have enough money to cover the down payment, closing costs, and reserves. Questions may include: Source of Funds: How much money do you have saved for the down payment and closing costs? Where are these funds coming from (savings, checking, retirement account, gift, etc.)? Are you receiving any gift funds? If so, from whom? Asset Documentation: Can you provide bank statements from the past 2–3 months? Are there any large or unusual deposits? Can you explain them? Reserves: Do you have additional savings left after closing (reserves)? Can you show evidence of other assets (stocks, bonds, retirement)? tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329
Show More