Whether you’re planning to invest in real estate or an operating company (or both), it’s important to know your goals. Adding a lender to your team may be a great way to reach your investment goals. Unlike investors, who are often compensated through equity by permanently sharing profits with the owner of the business, a lender relationship is temporary. Once the debt is repaid, the lender is no longer involved in the business.
If you are considering the purchase of only commercial real estate, the real estate itself is likely to be the collateral for the loan. While SBA loans are available for real estate, if the loan size is right and you have sufficient funds for a downpayment, a commercial real estate loan may be your best option. SBA loans are best suited for applicants with a limited downpayment along with other factors that may not work for conventional bank financing.
SBA lending is typically used for the purchase of a business because the loan collateral is the operating cash flow of the business.
Either type of loan may require a personal guarantee on the loan.
While Thrive Acquisition is not a lender, we are happy to refer our clients lenders who we think will be a good fit for our clients.