SBA loan (504)
Hi,
My name is Leo in Illinois. I'm a newbie of real estate business. Does someone recommend a 504 loan to an entry level of investor to purchase a real estate? I formed a LLC last year and it does not produce any profit yet. Should I apply for SBA loan after making a profit?
Leo
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#2 Buying & Selling Real Estate Discussion Contributor
- Lender
- Tampa, FL
SBA loans like the 504 aren't geared toward real estate investors. They are geared toward operating entities/companies that will be owning and operating a business out of the property. That might not be the best route to take. Tell us more about the project you're looking at and perhaps we can give you more guidance.
Quote from @Yusuke Koike:
Hi,
My name is Leo in Illinois. I'm a newbie of real estate business. Does someone recommend a 504 loan to an entry level of investor to purchase a real estate? I formed a LLC last year and it does not produce any profit yet. Should I apply for SBA loan after making a profit?
Leo
So SBA loans won't work for just a regular real estate purchase. They are for say, you want to buy a business but the business has some real property. Example a senior care facility. It is a business purchase, although in buying the business you will also be buying the facility too. An SBA would work here.
For buying a regular rental property, an SBA would not apply
