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Business loans and lines of credit available to Small Business' (Veteran Business)?

Veteran

Joel Melnick Salem, OH

I have a real estate investment company my brothers and I have applied for a portfolio loan with equity we have in all our rental properties. My question is what other vehicles can we use to be creative from banks and other organizations as we scale up from paying cash for single family homes to moving into commercial apartment complexes and paying for down payments etc? What loans are available to use for residential and commercial real estate, lines of credit, any specific loans for veteran small businesses that aren't very well known or advertised? Im also starting to syndicate larger deals with private investors any insight on that would be great as well on terms for investors. Thank you for the assistance.

25 January 2022 4 replies Small Business

Answers

Advisor

Steven Spillane Boston, MA

Hello Joel, I am a commercial loan broker. There are lots of different private and bank programs for investment real estate - thousands actually. Items that will determine what's best for you depend on:

1) your credit profile
2) your experience
3) your timeline to close on a transaction
4) are you buying stabilized properties or rehab/improving properties and adding value

Note that SBA loans are not an option as pure rental investment property does not qualify - you would have to have your own operating business occupying 51%+ of the property itself.

I'd be happy to talk through your goals and help point you in the right direct.

Steve

29 January 2022 Helpful answer

Advisor

John Hansen New York, NY

Hi Joel,

Thanks for reaching out! Here is a guide on getting business loans that is specifically geared towards: https://www.fundera.com/business-loans/guides/veteran-business-loans

Here is a non-profit that offers loans that may be worth looking into: https://www.kiva.org/borrow

While these are not specifically for residential and commercial real estate, they might be good places to start.

Best,
John

25 January 2022 Helpful answer

Veteran

Eddie Starr Spokane, WA

Most of these answers won't work, as real estate is it's own beast. You need to focus on real estate specific lenders.

Since you're looking to by and hold, as opposed to fix & flip, most of these lenders require you to put anywhere from 10 - 30% down.

You may be able to tap into the equity of your property via a HEL, HELOC, HES, or Cash Out Refi, to cover the downs, and they can offer you the rest.

Advisor

Jerry Welsh Middleville, MI

Joel,
I am not familiar with the real estate investment business per se. My recommendation is usually to check with the local chamber of commerce in your area, as they promote businesses in the community and many times have staff to assist with operational questions. From the finance perspective I always recommend the SBA, but according to an answer above that may not be an option. I do know there are SBA programs and products for veterans, again not sure real estate is exempt. The chamber is always is a great source of information.

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