Click on the link below to download my CASH FLOW CALCULATOR for BUSINESS PURCHASE worksheet: leo97eda0.clickfunnels.com/optin1704493342844 Click on link below to download a copy of my BUYER DUE DILIGENCE CHECKLIST:leo97eda0.clickfunnels.com/checklist
I currently own a salon in Las Vegas and renting. I believe the building I’m renting is up for sale and so I want to look into buying it using SBA loan. The building only has three unit which I’m in one of the unit. I’m planning on to be in the salon business for long term, so I think it’s a good investment for me instead of paying rent monthly.
Hank, this is a wonderful idea. Please let me know if you need my help to help you secure an SBA loan. If so, email me your contact information at leo@greenlandhq.com
I want to use an SBA loan to purchase commercial real estate. I would like to get an office building so that I can occupy 50% and lease out the other half.
Hi Ron, Thank you so much for the feedback I really appreciate it. Hope you subscribe to my channel. Yes, the SBA loves healthcare facilities. What city and state are you in? And, how are you identify the property?
Ron, thanks for letting me know. My area of expertise is in Central Valley California, Fresno/Clovis and surrounding areas. Let me know if you ever have interest in my market.
Got it. So yes, you can purchase it. You will need to set aside at least 10% for down payment and post closing liquidity. Let me know if you want to chat further. Email me your contact info at leo@greenlandhq.con
I want to purchase a Bed and Breakfast which has been in business for 20 years and profits 20k a month. I plan to live on the property. Is this 7a territory ?
Hi I would love to connect with you. I need help building my dream spa, rent is so high I think it’s better to buy commercial real estate and the operate the business out of it.
You mentioned motels but how does that factor into the 51% ownership requirement? Also with the equity injection how much equity are we talking is it equivalent to the total 10% down payment required for a 7(a) for example?
@@LeoLandaverde so basically if my 10% Down payment is $200,000 and I have a vacant piece of land that appraises for $150,000k I can use a combination of the land + $50,000 cash so I can retain my liquid cash …
Hi Markus, Yes you can. However, you would have to occupied at least 51% of the usable space. The SBA only lends on owner-occupied real estate. What city and state are you in? And what type of commercial property?
SBA does not approve of any loans whereby the income is primarily rental income. This is the reason why apartment buildings and even commercial real estate doesn’t work unless you occupy 51% of the space.
my boba shop is so new but our rental properties are bad around here. I'd like to buy a unit that has two other units in it. Id occupy 51% of it and rent out the rest to offset the cost of what I currently pay in rent. Is that a possibility?
That’s a possibility so long as the numbers pencil in. For instance, your global debt service coverage ratio must be in line and then the ratio to service the debt on the real estate with 51% occupancy from you and the rent pay from the business. also has has to make sense for the lender. Remember it’s all about risk mitigation for the lender.
@@LeoLandaverde The business being purchased or setup needs to make that income? Or do you need to already have the personal income reported on taxes to qualify?
Hi, leo Question already have a sba loan 250 thousand, and landlord is kicking me out of the building i still have 200 thousand which i can use as down payment for a commercial loan down payment, what should i do? Can i use it?? As down payment?
Hello Leo, thanks for the valuable information. Will like to know if SBA 7a loan can be used in buying a commercial property to be used for an event center. (wedding place)
Hi Ben, Unfortunately, no, you can only use this to by owner occupied commercial real estate. For instance, your business is renting and then you want to have your business own it’s on location. You also have to occupy 51% of the leasable space
@@LeoLandaverde I see, well any advice for someone wanting to buy multi family property. Just a side note my wife has her own business if that can help at all
Hi Leo, I am the owner of a trucking company and I want to buy a commercial lot and turn it into a semi truck parking with a repair shop. Actually, I found a good land, but I need help with the purchase. If you can help me, that would be great. Thank you
Hi Denis, the only way you can buy commercial real estate using an SBA loan is if you were going to occupy 51% of the space and have at least 10% to put as down payment. Do you have that?
@LeoLandaverde Thank you for your prompt response. I want to occupy more than 51% of the space, and I have 10% for the down payment. Also, can we do a Zoom call or phone call to discuss it?
Thanks for this video! I'm working on buying a former 17 room hotel in VT and turning it into 17 room Short-Term Rental units. $300k down, $978k rehab needed. ARV, $2m. Would I be able to get the SBA 7 loan, then do a cash-out refinance into a regular commercial loan in 5 years?
Joseph, in theory, yes you could. But you would have to keep operating in as a hotel because he would be getting an SBA seven loan for a hotel. You would have to disclose your plans to the SBA lender.
I’m interested in buying a mechanic shop but the deal is for two adjacent parcels. One zoned for business and one is land but zoned for residential. Would they make the deal ineligible for an SBA loan? I’m interested in acquiring it for my business. I can actually use the land to store cars. I could try to apply to rezone it after i acquired it
Hi Julian, yes, it may be possible but I need to know more. Is this mechanic shop a business listed for sale? Is the business being sold along with the real estate?
