Commercial Real Estate Play
The 10% Down Ownership Secret — stop paying rent to a landlord and start building equity in your own building.
Own Your Building Instead of Renting It
One of the most powerful — and least-known — features of SBA lending is the ability to purchase commercial real estate with as little as 10% down. Compare that to the 25–30% conventional lenders demand.
"We spent 12 years paying $8,500 a month in rent — money we'll never see again. If we'd known about the 504 program 5 years ago, we'd already own our building outright."
504 vs 7(a): Which Program for Your Property?
🏛️ The Owner-Occupancy Rule — Don't Miss This
Buying an Existing Building
New Construction
📊 Rent vs Own: A 10-Year Comparison
❌ Renting (10 Years)
✅ SBA 504 Ownership (10 Years)
🗺️ The 504 Real Estate Purchase Roadmap
Identify the property you want to buy. Engage a commercial real estate broker familiar with SBA transactions.
Find a Certified Development Company (CDC) in your state. CDCs administer the 40% SBA portion of the loan.
The bank will order an appraisal. For SBA 504, the property must be valued at or above the purchase price.
Your bank and the CDC both process paperwork simultaneously. Expect 45–90 days to close.
Sign at the title company. The bank wires 50%, the CDC wires 40%, you bring 10% as your equity injection.