Expert: Diann Tonnesen - 8/4/2011

Question
Hi. How are you? I have 3 questions for you:

Where would I go to apply for a loan to buy into a Real Estate Firm?

Would you recommend SBA, because I have heard of them, but haven't done much research on them?

What do I type in to find real estate firms that I can actually buy into?

Thank you so much!

Answer
Hi, Susan,

You will probably not be able to find much on the Internet about real estate businesses for sale. Are you looking to buy one in your area, or are you considering several areas around the country? This is not really a real estate question, but a business brokerage one. There is no centralized listing system for businesses, so the best idea would be to contact various business brokers in the communities you are interested in and find out what they have for sale.

Are you trying to buy a company all on your own, or do you want to form a partnership with an existing owner? An existing owner may be willing to do some owner financing with a substantial down payment. If you are considering a national franchise like Prudential or Century 21, you may be able to obtain financing for a purchase from the franchise itself. The SBA is also a great place to obtain financing - they specialize in helping small business owners and minority groups. Just be prepared to jump through the paperwork hoops!

I hope this helps you get started in the right direction. As I said, this is not really a real estate question as you are trying to buy a business, not a property (though property may be attached to the sale). It would help to know more about your goals for this investment - what is your primary purpose in buying into a real estate firm? Are you planning to actively participate in real estate sales yourself?