Important info for Investors interested in Commercial Property

[Rion Manita]

Good Day Bigger Pockets,

I hope this finds you well. recently while meeting with my bank I learned more about the SBA 504 loan. It sounds fantastic, perfect for business owners and investors. It works like this;

If you have a business you can purchase a commercial property with only 10% down! Limited to 3 Mill, however there are exceptions. You do have to maintain one of the units as your business in order to qualify. Investors can get away with creating a llc to run their business or a new business out of the space as well. Property must be occupied with a strong rent roll as that is used for qualifying. If property is vacant, your businesses finances must demonstrate an ability to pay. 

This is a great program none the less, there are a few restrictions with what kinds of businesses but a 10 unit building with a commercial space can be an amazing investment for many people. Unfortunately  in my market (Greater Boston area) Commercial Real Estate is at an all time high.