Tommy Dobczyk breaks down three funding structures for real estate deals, focusing on SBA 405 or 7A loans. He used this strategy 36 times between 2020 and 2024, pulling capital at 4-6% interest to rebuy buildings and reinvest the freed-up equity.
Are you in the deal room? 3 ways to structure it. Option 2, because he's not selling the building, SBA 405 or 7A. But this is an option for you to pull capital too. You get a $5 million SBA loan. I'm literally just talking from like, like something's like, tell this guy about this. You can go get a $5 million SBA loan, rebuy your building, and then reinvest all your capital. And you're only getting your SBA loan at like 4, 5, 6%. So it's ridiculous cash. Me and my partner did this 36 times between 2020 and 2024, and it was just continually using his property to go and get, do, do a deal and come back, pay it off, do it again. We got 7— we did 7 SBA loans in a matter of 4 years, and use the same property every time. Key due diligence bullet points, and it tells us about the physical capex problems, title and zoning issues we might have, financial tendency issues, market risks, like the things that you need to know as an investor. So if you're not thinking about it because you got shiny object syndrome, like, this is going to bring you back to reality and say, hey, look at it over here. The— what I need to finish the underwriting. It brings it all together for me, and next steps and actions are here.
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