{"ok":true,"canonical_url":"https://dealroom.so/glossary/real-estate-investing","api_url":"https://dealroom.so/api/public/glossary/real-estate-investing","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"real-estate-investing","term":"Real estate investing","group":"The loan itself","definition":"Businesses primarily involved in speculative real estate investing, where they buy and sell property for profit, are usually ineligible for SBA 7(a) loans. The loan is for operating businesses.","what_it_means":"If the target business's main function is holding real estate for resale or passive rental income, it's likely ineligible. However, an operating business that owns its commercial real estate and uses it for its operations can include that real estate in the loan.","url":"https://dealroom.so/glossary/real-estate-investing","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"ineligible-businesses-rule","term":"Ineligible businesses rule","url":"https://dealroom.so/glossary/ineligible-businesses-rule"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"What is the difference in repayment terms between real estate and non-real estate loans?","url":"https://dealroom.so/sba-loans/basics/what-is-the-difference-in-repayment-terms-between-real-estate-and-non-real-estate-loans"},{"question":"If the business owns real estate, must the buyer also purchase the real estate with the business?","url":"https://dealroom.so/sba-7a/questions/if-the-business-owns-real-estate-must-the-buyer-also-purchase-the-real-estate-with-the-bus"},{"question":"Will acquiring a business in a restricted industry (e.g., gambling, passive investing) kill approval?","url":"https://dealroom.so/sba-7a/questions/will-acquiring-a-business-in-a-restricted-industry-e-g-gambling-passive-investing-kill-app"},{"question":"If I'm buying a business with real estate, can I get a longer term if the real estate is a significant portion?","url":"https://dealroom.so/sba-7a/questions/if-i-m-buying-a-business-with-real-estate-can-i-get-a-longer-term-if-the-real-estate-is-a-"},{"question":"When is personal real estate typically required as additional collateral?","url":"https://dealroom.so/sba-7a/questions/when-is-personal-real-estate-typically-required-as-additional-collateral"},{"question":"What environmental due diligence is mandatory for real estate collateral?","url":"https://dealroom.so/sba-7a/questions/what-environmental-due-diligence-is-mandatory-for-real-estate-collateral"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Real estate investing","url":"https://dealroom.so/glossary/real-estate-investing","source_type":"DealRoom Data"}}