Starting a Rental Real Estate Biz
by Bels13, Window Shopper
- Created: November 20, 2013, 7:19 pm
- Updated: November 20, 2013, 7:25 pm
I want to start a rental business such as apartment building. I thought I could use the help of SBA programs, but then I read that the SBA loans cannot be used to acquire a rental real estate. Here it says quite clearly that it cannot be used for rental real estate: http://www.sba.gov/content/use-cdc504-loan-proceeds A 504 loan cannot be used for: Working capital or inventory Consolidating, repaying or refinancing debt Speculation or investment in rental real estate It says we can use it to buy land and existing buildings and to build something as long as it is not a rental real estate. The question is what kind of facilities I can buy the, if most of the real estate is in one way or another a passive rental biz. Can I use it at least to buy or build a small 10 room motel or this too is considered rental property not occupied by the owner? In the case of a motel I believe it is owner occupied and it creates jobs such as house keeping, concierge, reception, etc. and all these employees work inside a motel, so it is occupied by the owner... Can it be used for real estate development and resale of the apartments? In this case I create a lot of jobs while the development is undergoing, and once it is finished I still create jobs - attorneys, realtors, maintenance, etc. If not what loans are out there to buy or build apartment buildings and hotels? Can I buy a single apartment and live in it - occupy it by myself, since renting it out is not allowed? Or apartments in general cannot be bought with 7a and 504 program? Also a question: How do people buy properties overseas? It says SBA only supports biz in the US... Are there some loans for international biz that banks offer?
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