Hey everyone,
I'm seeing quite a few reputable social posts stating that they themselves have or know others who've used a SBA loan to purchase a multifamily portfolio. The real stipulation I'm learning is that the purchaser must purchase the management company operating the portfolio. The other is, the acquiring business must utilize / inhabit one of the units within the portfolio as their operating base.
Can anyone back up this claim or speak more to this from their industry experience?
For context, I'm at a state in my RE investing career where I'm no longer interested in purchasing small multis myself and with my business partner. We've made some great acquisitions that've resulted in appreciation and cash flow, but we'd like to scale and have decided to syndicate a deal this year – something we're very excited about.
But because raising money is already something we're prioritizing, instead of getting a commercial deal done, perhaps using that money for a portfolio might be more worth our time.
SBA Loan for Multifamily Portfolio
byu/CL_REInvestor inrealestateinvesting
Posted by CL_REInvestor
1 Comment
This is actually a thing but it’s pretty niche and has some weird hoops to jump through. The management company acquisition part is legit – you’re basically buying a business that happens to own real estate rather than just buying the properties directly
The office requirement is where it gets tricky though, most lenders are gonna want to see actual business operations happening there, not just you calling one unit your “headquarters” on paper. SBA doesn’t mess around with that stuff
Honestly for your situation syndication might still be the cleaner path, especially if you’re already set up for raising capital