Any SBA 504 bank recommendations for acquiring commercial real estate?
Does anyone have bank recommendations for an SBA 504 loan (25 year)? Looking for leads on banks with competitive interest rates that offer fixed rates for a commercial real estate investment. Not interested in any banks that only offer variable rates. TY!
[{"id": "eknslab", "text": "Where are you?", "replies": [{"id": "eknwxox", "text": "TX", "replies": [{"id": "ekoub94", "text": "Ok. I work for a CA bank, so I\u2019m not sure what you have locally. How much are you looking for? Check out First Bank. I know they service nationally.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "eknue36", "text": "I have done this with my owner-user buyers of industrial condos which is a great use of SBA financing with 90% leverage!  Mostly the smaller, local banks are the real SBA experts.  I used Citizen's last time in San Diego.  There are many others.  The question is whether you are borrowing enough to get anybody's attention.  When I was selling off 30ft2 of space at $105/ft, it was very easy to get somebody's attention and knock out the underwriting quickly on the deals.  Like everything else, if the opportunity is good, somebody will want to participate.", "replies": [{"id": "eknyh9c", "text": "$105/ft sounds like a dream! I'm in Austin TX so this should be pretty damn lucrative for the banks!", "replies": [], "depth": 2}], "depth": 1}, {"id": "ekofbkk", "text": "One thing to know about the 504 loan is that no matter what bank you use for the first lien, the second lien will be held by the SBA. The SBA sells their debenture at the same rate no matter what bank you chose for the first lien. So basically, the basic rate/term of the second lien (the actual thing that makes it a 504) will be the same no matter what bank you choose.\n\nThat being said, picking a bank, and more specifically a loan officer, who really knows all the specific 504 rules is vital. The rules change all the time and most loan officers don't get the 504 program at all. Or worse, think they know it and don't. \n\nAs people here have already noted, you can't use the 504 for 'investment property.' you have to occupy at least 51% of the premises for the life of the loan (higher than that if you're doing new construction). If you try to sneak by and the bank/SBA catches you it's a technical default. \n\nThat being said, if you're still interested, based on your comments I think I'm in your market. PM your details and I can send you some good contacts.", "replies": [], "depth": 1}, {"id": "ekousec", "text": "Where in TX are you located? There are a number of local banks/credit unions that should be able to assist you. The SBA 504 rate just dropped to 4.52%. The bank will usually charge a little more than this, but I wouldn't go with anything over 6% with a 25 yr amo. \n\nDepending on your location if it's rural you can qualify for USDA financing which is permanent as well. \n\nKeep in mind, both SBA and USDA charge an origination fee. \n\nIf you're local banks/credit unions aren't of any help let me know. More than happy to connect you with one of my SBA lenders. Cheers!", "replies": [], "depth": 1}]