Financing options for self funded searchers planning to hold permanently?

April 30, 2026

by a searcher from California Polytechnic State University - San Luis Obispo in Orange County, CA, USA

I'm a self-funded searcher planning to acquire and hold permanently, then continue growing through additional acquisitions over time. The challenge I keep running into when thinking about bringing in outside investors is that most LP structures assume a sale event to deliver IRR. If I'm not selling, traditional equity terms don't really fit, assuming an IRR between 30%-40%. A few things I'm trying to figure out in regards to financing options: - Do most permanent-hold searchers stay away from outside investors entirely and stick with SBA + seller notes + other forms of debt? - Are there investors out there who prefer consistent cash flow over a terminal sale? If so, what do their terms look like? Appreciate any perspective from those who have financed a permanent hold deal.

Reply by a searcher
from Villanova University in San Diego, CA, USA

Let’s chat. I know many people that would be interested in long-term hold and consistent cash flow.

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

There have been some good comments already. You could use SBA financing and try to limit the investor equity injection or possibly avoid it entirely. You could also use SBA with an investor equity injection with a plan to refinance or at least get additional debt to buy-out the equity investor(s) at a future date. Unless you plan to put down significantly equity yourself, doing more conventional financing is likely out of the question without investors. If you would like to discuss options, I am always happy to talk about debt options and run scenarios. You can reach me here or directly at redacted

+37 more replies.

Join the discussion