What are the limitations for using a 504 loan to purchase owner-occupied real estate for a business that already has a 7a loan? If the business has multiple partners, but not all of them want to be a part of the real estate transaction, can you still use a 504 loan with sister entity under a different ownership make-up than the business?
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
Nuances though.
The operating company still has to guaranty the real estate debt 504 because you’re getting this SBA 504 loan for the benefit of the operating company. And the cash flows from the company are what is being relied on for repayment. SBA doesn’t provide investor debt.