Evan Carmichael Top Header about About About facebook Twitter YouTube Google+

Purchasing Real Estate using the SBA 504 Loan



Free PDF Download
SBA Loans - What Qualifies as a Small Business - By Harlan Friedman

Name: Email:


This message will deal with how commercial Real Estate can be financed through the SBA Programs. The SBA has a loan program called the 504 program, which is specifically used for the financing of Real Estate oriented transactions, which can be a part of a business opportunity or not.

The benefit to financing a Real Estate Oriented transaction through the SBA is that a business as a start up can buy real estate as part of the initial operation of the business, or an ongoing business can be sold with the real estate as well. The SBA has a very aggressive program when Real Estate is involved.

An SBA loan can be up to $4.0 million for Owner Occupied Commercial Real Estate Transactions.

Borrower Benefits

Low down payment of only 10%

Long Repayment Terms - reducing monthly payments

Can be long term fixed rate unlike traditional 7A loans

Use of Proceeds

Purchase, construction or renovation of owner-occupied commercial real estate

Standard Loan Structure

50% First Mortgage up to 3 million, 25 years fully amortized

40% SBA 504 second mortgage, 20 years fully amortized

10% down payment by borrower.

The above is commonly known as a 50/40/10.

As you can see there is as great deal of flexibility when structuring SBA Loans, this is just another benefit that SBA financing offers the business owner.

Please continue to call us to discuss your deals. We are always expanding the services that we offer. So if it has to do with capital think of us first.


Related Articles

  Real Estate Commercial Loans?
  Defining “Hard Money”
  Real Estate Backed Financing
  Non-Real Estate Loans Private Lenders
  Commercial Properties Being Written Down by 50%
  Banks Continue To Hold Back on Lending
  When You Have To Find A New Home
  Finding A New Home Due To Your Job
  Managing The Anxieties Of Finding A Home Due To Your Job
  Home-based Business: Real Estate
  Only 6% of Small Business Owners Have Acquired Commercial Real Estate
  A lesson learned at the mall
  What Are Recourse and Non-Recourse Loans?
  Time to Re-Finance or Buy a Home?
  Real Estate Fixer Uppers -- Are They Worth It?
  The Right Real Estate Offer
  Tapping Into Real Estate Agents for Home Party Plan Sales
  Why Is The Canada Government SBL Loan For Small Business A Canadian Success Story
  Buy Real Estate Clean Up Credit Report One More Oil Well
  PROPERTY LIFE LESSONS 3 – Part 1

Home > Small-Business-Loans > Harlan Friedman > Purchasing Real Estate using the SBA 504 Loan >

Free PDF Download
SBA Loans - What Qualifies as a Small Business - By Harlan Friedman

Name: Email:

About the Author: Harlan Friedman

RSS for Harlan's articles - Visit Harlan's website

Harlan A. Friedman, Author & Broker is president of Lightning Commercial Funding Inc., a California Financial broker. He has more than 25 years of experience as an investment banker and financial consultant. Lightning Commercial Funding specializes in Small Business Loans and Commercial Financing exclusively, throughout the United States from the startup of new business to large commercial transactions.

Harlan is also the author of the popular book GET Your Loan Closed! Harlan Friedman's banking experience both as a branch manager for major California Savings & Loan as well as his Investment Banking experience has provided him with the knowledge and experience to provide a myriad of banking products to the general public.

Lightning Commercial Funding, Inc. was incorporated in 2005 to further assist his clientele with commercial and business financing needs throughout the United States.

Mr. Friedman graduated from The George Washington University in 1978, earning a Bachelor of Arts degree, and Western State University College of Law in 1983, earning his Juris Doctor degree. He currently holds a California Real Estate Brokers License. Reach Harlan A. Friedman at (858) 592-0659 x101 or feel free to e-mail him at harlan@loanforbiz.com.

Harlan Friedman is available for speaking engagements and individual coaching. For extensive information for business owner, over 100 pages of relevant information for the small business owner, from articles, accounting ratios, commercial loan terms and mathematical formulas. To learn the ten secrets your lender does not want you to know, order his book GET Your Loan Closed!


Click here to visit Harlan's website.
Dashed Line

More from Harlan Friedman
Franchise Financing various options are available to you
SBA Guarantee Fee Explained
The Various Roles Banker Broker and BDO
SBA Loans What Qualifies as a Small Business
Purchasing Real Estate using the SBA 504 Loan

Related Forum Posts

Re: No money Down real estate Webinar Re: No money Down real estate Webinar
Re: Hi Re: Hi
Re: Hi All, Re: Hi All,
Re: Invest in Real Estate or Stocks? Re: Invest in Real Estate or Stocks?
Here to Meet Great People! Here to Meet Great People!

Share this article. Fund someone's dream.

Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
Share for a Cause
Featured Article



Worksheets
By: Evan Carmichael

Do you have what it takes to be an entrepreneur?

8 Powerful Steps to Finding Your Passion

Does your pitch suck?

Create a plan of attach to launch your new business.

8-Cover

Like this page? PLEASE +1 it! Evan Signature
Bottom Footer



Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Name:
Email:
Popular Articles

Internal Customer Relationship Management

Your Weekly Team Meeting

What do animals have to do with marketing?

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.