The Desire to Own Office Space

The man who now owned the real estate company wanted to reduce costs and increase his assets. He decided that the best option might be to purchase the building where his office space was located. While this would take more money than simply paying rent every month, it would make the building his own. In the process, other businesses operating out of the building would pay rent to him. The building was in a great location and the operator of the real estate business knew it would be a huge benefit to have it as his own.

 

The Cost of Real Estate

This was a family business that the owner was determined to make successful for those who came after them. Taking the reins and moving up was the only solution that was possible in his eyes. Thankfully, the office building was up for sale so it was easy to determine if it was something he could follow through with. In the end, the property was priced at close to $2 million. This wasn’t the kind of money that was just sitting around. However, the owner was still interested and wanted to make it happen. He knew it would take work but was ready to get his hands dirty.

The Search for Loan Options

There are nearly as many lending options as there are companies that utilize them. Going through all the options can be a huge challenge. Thankfully, the owner knew someone who worked with small businesses in another line of work. They recommended he speak with a small business expert in the area. This person laid out all the options available to get the office building under the real estate agency’s control. After all the options were on the table, that SBA 7(a) loan seemed like a fantastic option with more benefits than other lending options.

Why the SBA 7(a) Loan Came Out on Top

One of the most popular small business loan options available is the SBA 7(a) loan. The real estate agency owner learned that these loans have low interest rates and long loan terms. His business was eligible and the down payment on the property would be lower than expected. As someone with collateral in other properties, it made sense to go forward choosing this loan. His excellent credit would give him the best terms and ensure he could be the new owner of the office building that he had come to realize was an amazing resource.

Looking to the Future

In the end, the man who was reestablishing a real estate agency as a family company had no problem acquiring an SBA 7(a) loan. With the loan available, he was able to finance the office for his own business as well as those of others in the community. Even with the payments on the loan, he saved money and was able to call the office his own. He went on to make the real estate agency one of the best in the city.

What’s New