SBA Loan Lessons and Forced Property Appreciation

Rob Rowsell discusses the concept of forced property appreciation. Rob learned a lesson from applying for an SBA Loan for a property from the Small Business Administration. In the end, he made huge gains from his auto repair shops’ appreciation in value over the years.

Small Business Loan Application - Forced Property AppreciationMistakenly Applying For A Small Business Loan

Rob begins the clip discussing the steep income tax in California, and his shift to investing in other states. When Rob once applied for a small business loan with the United States SBA, he learned that investors must guarantee their loans with all of their personal assets.

He owned several auto repair shops at the time, and needed the liens removed from them in order to sell those businesses. When he tried to cross collateralize those with other businesses, he was informed that he had to pay off the shops completely. Rob, short on time, decided to go ahead and do that. That decision had some unexpected rewards.

Forced Property Appreciation on a Business

After paying off the loans for his auto repair shops, Rob learned the property had increased in value greatly. This property appreciation yielded a few hundred thousand dollars in just five years of ownership. This is not to mention the revenues you accrue over years of running the business. You won’t owe any taxes on that property appreciation until you eventually sell it.

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Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the ATL ALL-In Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Sign up today!