Buying a Real Property Management franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 7 7(a) loans to buy an existing Real Property Management (classified mostly as Residential Property Managers), totaling $3.8M. The median loan was $283,000, 56% lower than the $645,250 median for all SBA-financed acquisitions. 6 of these loans were approved in the last two fiscal years.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Real Property Management resale loans landed between $125,000 and $673,500.
- Lender experience exists. The Huntington National Bank alone has financed 2 Real Property Management resales.
- Guaranty. The SBA guaranteed 73% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Real Property Management resale
The median SBA 7(a) loan for a Real Property Management resale was $283,000 across 7 loans (FY2018 to FY2026). The Huntington National Bank, MI Bank and Live Oak Banking Company have financed the most Real Property Management resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Real Property Management acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $100K | $100,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 3 | $2.5M | $470,500 | |
| FY2026 | 3 | $1.3M | $283,000 |
How often do these acquisition loans fail?
Fewer than 20 Real Property Management acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Lenders financing Real Property Management resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | The Huntington National Bank | 2 | 28.6% | $977K | |
| 2 | MI Bank | 2 | 28.6% | $621K | |
| 3 | Live Oak Banking Company | 2 | 28.6% | $383K | |
| 4 | American Business Bank | 1 | 14.3% | $1.9M |
States where Real Property Management units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Vermont | 2 | 28.6% | $977K | |
| 2 | Michigan | 2 | 28.6% | $621K | |
| 3 | California | 1 | 14.3% | $1.9M | |
| 4 | New York | 1 | 14.3% | $283K | |
| 5 | Washington | 1 | 14.3% | $100K |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
How lenders classify Real Property Management
Lenders code each loan to a NAICS industry. For Real Property Management the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Residential Property Managers | 5 | 71.4% | $3.2M | |
| 2 | Other Activities Related to Real Estate | 2 | 28.6% | $621K |
Questions buyers ask
How much do buyers borrow to buy a Real Property Management franchise?
The median SBA 7(a) loan for a Real Property Management resale was $283,000 across 7 loans (FY2018 to FY2026). The middle half of loans ran from $125,000 to $673,500. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Real Property Management acquisitions?
The Huntington National Bank has made the most SBA acquisition loans for Real Property Management (2, 29% of the total). MI Bank, Live Oak Banking Company, American Business Bank follow.
What interest rate and term do Real Property Management acquisition loans carry?
The average initial rate at approval was 8.93% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Real Property Management resale riskier than other SBA-financed acquisitions?
Too few Real Property Management acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Real Property Management units being bought with SBA loans?
Vermont (2), Michigan (2), California (1), New York (1), Washington (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Residential Property Managers acquisitions
- Vermont acquisitions
- Michigan acquisitions
- California acquisitions
- The Huntington National Bank
- Live Oak Banking Company
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Real Property Management" (franchise code S1407). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.