SBA loan for Mixed-use building

[Devonte Dinkins]

Hello Everyone,

I am interested in using a SBA loan to purchase a mixed-used building to start my own property management company.  The only problem I see is that although I work as a Asset Manager, I am young and not sure the bank will take me seriously.  The buildings I am interested in are listed between 600k-1.3 million, but I feel the income the buildings are currently producing can support my start-up ( I will pay myself a management fee to manage the apartments above my office).  I am also aware of grants from the city, that can help me out. Can anyone give me guidance on how I can get this done, I have been putting together a very good plan, but is it possible for a 22 year old to get a 1 million dollar loan? If so how can I make this work, and what can I do to present this to a lender?  If not, what are my options?

[Dan Wallace]

Hey Devonte,

I am new to this forum. SBA and commercial lending is what I have done for several years. To answer some of your questions the SBA publishes quite a bit of information regarding their programs on their web site. The SBA's primary program is the 7a but there is also the 504. One very important thing to remember is that the SBA guarantees loans and does not make them directly. You still need to have a participating lender make the loan. This means you still have to qualify to a given bank's credit underwriting standards.

Check out the SBA's web site and if you can't find what you need feel free to contact me.