04-27-2013 10:02 AM
I am considering purchasing the real estate I currently lease for my business (land and two buildings). Looking around for loan options and the SBA 504 seems to be a great fit for me as it's typically a low down (10% to 20%) and uses the real estate as collateral. I would have to sign personal guarantee but that's not an issue to me.
As it stands now the other two tenants should cover almost all of the new mortgage payment with their rent saving me my rent payments less insurance and maintenance. On paper it's a no brainer but it's going to be the largest purchase of my lifetime. Talk about getting freaked out. I have a goal of making this move beginning of 2014 so I have 9 to 10 months to get prepared, get three tax returns ready and to maximize my credit scores.
Anyone have any experiences with commercial loans?
07-10-2014 09:03 AM
Sorry for my delayed response, just back from vacation.
I ended up not trying to purchase the buildings. Well I did make an offer prior to starting the loan process but they were sold to another buyer for $50K more than my offer. In the end a good move NOT to make the purchase as the area is making some changes and I don't think I want to be in this location. Still leasing the spoaces and giving the money to the new owner (who paid cash so it was a no brainer to sell to them). In the end the seller got $5K more than my offer but faster than I could make it go.
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