SBA's regulations on leasing require that the small business occupy at least 51% of the rentable property if the 504 project is for an existing building and at least 60% of the rentable property (with the intent to move into at least an additional 20%) if the 504 project is new construction.Eligible Borrowers: For-profit, non-publicly traded businessesTangible business net worth (including affiliates) not to exceed $15 millionAverage net income of the business not to exceed $5 million over the previous two yearsOwnership must generally be comprised of 51% U.S. citizens or Legal Permanent Residents (some exceptions apply)Examples of Property Types Fountainhead Finances:Medical offices or medical facilities (such as labs and clinics)Office buildings (including office condos)Warehouses (and other industrial properties)Day care facilities (for children or adults)Free-standing restaurantsLimited-service, flagged hotels (some unflagged destination hotels will be considered)Auto repair shopsAssisted-living facilitiesCall to ask about many other property types that are eligibleIneligible Borrowers: Non-profits (except sheltered workshops)Passive holders of real estate and/or personal propertyLending institutions (mortgage brokers and correspondent lenders are eligible)Life insurance companies (franchised agents are eligible)Businesses located in a foreign countryBusinesses selling products or services through a pyramid planGambling concernsBusinesses which restrict patronageGovernment owned entities (excluding Native American tribes)Consumer and marketing cooperatives (producer cooperatives are eligible)Businesses engaged in loan packagingBusinesses that have previously defaulted on a Federal loanBusinesses engaged in political or lobbying activitiesIneligible Use of Funds: Working capitalInventoryRolling stockBusiness “good will” or “blue sky”

I read somewhere that the new thing for ownership is to take possession in a trust as opposed to an LLC because banks and financial institutions view a trust as an individual and not a business and will offer faster and better financing to you and whoever your buyer is in the future.

The Urban Land Institute published a great book called Multifamily Housing Development Handbook.

Should I attempt to open a couple of more lines with other institutions so that I have more available credit to me or would that not work?

He may institute a buyer fee of 30k for any new buyer in the association, prohibit rentals or require tenants / buyers approval by HOA.

Once there are some assets on deposit with that institution and you have a proven track record, there is much much more discretion regarding deals on their part.

Loopnet just has the 3rd tier deals institutions don't want...

Goal with this is long term buy and hold.If I run the numbers with slightly under market rents, and institute RUBS, it ends up cash flowing about 525/month (including PM) which is about 9% CoC. (30 years @ 4.9 %, 25% down)Those numbers are pretty good for this area from what I've been seeing.

I’m not sure, but will a transactional funding institution be able to supply a statement for the remaining balance?

Hi Christian,YOU are awesome.Thank you--you are right on target with so many items above.I have a 16' class a buffer on both boundaries and have permission to reduce that another 25%.A major med institution is interested in my parcel BUT they require 6/1000 sf parking. ( Why wasn't Elon Musk born 20 years earlier-- then we wouldn't have these wasted paved parking requirements.)Anyway, the buyer prospect needs min 15,000 sqft... but cant get the 90+ surface parking #s.HATE TRIANGLES.Please, Let me know if you have ANY TIME tomorrow ???