If you're looking at commercial real estate and considering SBA financing, you need to know the difference between the 7(a) and 504 programs.SBA 7(a) Loan – The Versatile Option✔ Max Loan Size: $5 million✔ Down Payment: As low as 10% (varies by lender and deal structure)✔ Eligible Use: Real estate, working capital, equipment, partner buyouts, business acquisitions✔ Term Length: Up to 25 years for real estate (10 years for other uses)✔ Interest Rate: Variable or fixed, typically Prime + 2.75% (capped by SBA)✔ Key Advantage: Flexibility.

Commercial loans are not typically 30 years fixed.

What are "typical" rental terms in Sac (e.g. does owner or tenant pay utilities, trash, water etc) for your properties?

It seems to me that if I were the agent on the buying/selling side of these, I would save 2-3% on each deal (typical agent commission for each side).

What people typically do is transfer the deed to the LLC and keep the loan in their own name.

If you typically wait 6 months, then they will lend 80% of the appraised value.

.: Its typical for real estate investors to hire a private home/building inspectors to inspect a real estate property before they buy it.

@Rory DarcyRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

You can expect returns around 10-18% in C-Class neighborhoods, with duplexes typically priced between $150K and $200K.

Hey everyone,I’m new to buying properties through owner financing, and I’d love to learn more about how these deals typically work.