Mark Kohler argues SBA loans are unnecessarily difficult and unnecessary for buying commercial property. He outlines alternatives: private lenders, Fannie Mae, Freddie Mac, and broker-driven loans. His own experience includes assuming someone else's SBA loan and piecing together multiple financing channels.
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Hey, I want to respond to some of the comments below about the SBA lending. And you said, mark, are you crazy? SBA loans are very difficult to get. I agree. They are a pain in the butt. I hate bankers. I wish I could do business without them. I get it. So here's the strategy. Don't use an SBA loan. It doesn't mean you can't buy a building without an SBA loan. For crying out loud. There's private lending, Fannie Mae, Freddie Mac, other type loans that might work for you. Talk to a legitimate creative lender. That doesn't mean walking into Wells Fargo or Chase. There are independent lenders, brokers that can help a business owner. Just getting qualified for the loan can be challenging when we don't have a big fat W2. I get it. I've been there. The SBA can be a total pain. But does that mean the strategy doesn't work? No. And it is very, very possible to buy your own building space, whatever it is, warehouse, strip mall, condominiumized building, whatever. There are ways to get into these buildings and rent them to your own business. So screw the SBA if you want. Doesn't mean you can't get a loan. I've had to go multiple routes sometimes to get into a loan to get a building to rent to myself. In fact, once we assumed an SBA loan that someone else had in order to buy a building to rent to our business. It's doable. Be patient, get creative and get out and talk to people.
